Feedback: N26 growth and diversification

FACTS

The German neo-bank  N26 has been operating in France for a little more than 4 years now. It has just passed the 2 million customers in France, a good opportunity to take a look at its journey.

• This figure has been achieved thanks to constant growth. N26 states that it has been attracting 2,000 new customers per day for the past 18 months.

• N26 in France represents a volume of more than 1 billion euros of transactions per month on average over the last 6 months. It has announced its intention to become the main account for 5 million French people by 2024.

• In terms of customer typology, 40% of N26 customers in France are over 35 years old and live in more than 13,000 metropolitan areas.

• A still important potential of prospection:
  • N26 estimates that 3 out of 4 French people have never heard of its offer. They therefore represent as many potential prospects for the future. Especially since, according to the FinTech, 1 in 5 French people are thinking of changing banks in the next 6 months.

• Reinforced teams
  • 250 of the FinTech's 1,500 employees are dedicated to the French market. A reinforced team that should allow N26 to support its local deployment; a new Paris office is also now home to the N26 France management team.

CHALLENGES

• A positive evolution towards profitability: N26 specifies that, over the last 8 months, half of its French customers have opted for its paying formula. Last November, the challenger announced the creation of a new mid-range offer, charged 4.90 euros per month, including the standard free offer with some additional services. Until then, the first premium offer, N26 You, started at 9.90 euros per month. This is a positive development for the neo-bank, which is counting on this business model to reach profitability this year.

• Continuing its diversification and leadership: N26 specifies that its ambition is now to complete its range of products to meet the expectations of the French. Between now and this summer, N26 will launch new features in its 24 European markets, including:
  • virtual IBANs, for each sub-account Spaces,
  • a feature for sharing bills with friends or family,
  • a payment solution in several instalments.

MARKET PERSPECTIVE

• In addition to its results, N26 also continues to leverage its expertise and data to mark its positioning. Just recently, the FinTech looked at the subscription model in a survey of 6,000 consumers in France:
  • nearly a third of respondents have increased their number of subscriptions compared to the pre-pandemic period;
  • 41% of Europeans subscribe to two or three services;
  • Paid packages for entertainment services have attracted more customers during the crisis and young people are particularly inclined to pay for these services (33% of 18-34 year olds have more than 4 and spend an average of €47.74 per month).