N26 Continues to Welcome New Customers, Disregarding Criticism from Bafin

In the financial hub of Frankfurt, digital bank N26 is currently embroiled in ongoing discussions with the German financial regulator, Bafin. These talks, which have been a topic of conversation in recent paragraphs, are centred around regulatory issues that the bank has been facing.

Maximilian Tayenthal, co-founder of N26, addressed these matters during the Handelsblatt Banking Summit. He acknowledged that the bank may not have given enough attention to regulatory issues in its early stages. This admission comes in the wake of an interim report by Bafin, the specifics of which have not been disclosed. Media outlets have described this report as "devastating."

Bafin has imposed certain restrictions on N26's growth. The bank is now limited to a maximum of 50,000 new customer registrations per month. This decision, however, does not signal a ban on new customers, as Tayenthal expects.

The discussions have also led to changes within N26's leadership. Marcus Mosen, the former chairman of the supervisory board, has stepped down from his role and is now serving as Co-CEO, effective from September 1. Andreas Dombret, the former member of the Bundesbank's board, will succeed Mosen as the new chairman of N26's supervisory board in October, pending regulatory approval.

Valentin Stalf, the other co-founder of N26, has announced his stepping back from the role as co-CEO and will join the supervisory board after a transition period.

Bafin has also raised questions about the amount of credit N26 can lend to its customers. In addition, the regulator has fined N26 €9.2 million for late money laundering suspicions and shortcomings in its control systems.

Tayenthal is currently engaged in "very intense discussions" with Bafin regarding these matters. He anticipates a decision from Bafin on the possible reappointment of the special commissioner overseeing internal processes at N26 in the next few weeks.

Despite the challenges, N26 remains committed to navigating these regulatory hurdles and continuing to provide innovative banking services to its customers.