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The key issue with N26 is their poor unit economics. Right now, they are losing money on most of the checking accounts, as they foot the ATM wholesale fee (thou

The key issue with N26 is their poor unit economics. Right now, they are losing money on most of the checking accounts, as they foot the ATM wholesale fee (though they limit it to 3 "free" ATM withdrawals per months). The issue is that they don't have enough premium services to compensate for the "loss leader" like regular banks do. The hope from Tencent and Allianz is that they will add these now, and then move to great unit economics, but for now they are bleeding red ink.

215163831328308 9y ago
Their website[1] front page seems to state up to 5 'free' ATM withdrawals per month. [1]: https://next.n26.com/en-eu/ https://next.n26.com/en-eu/
- coinerone 9y ago
  Only 5 free withdrawals if you use your N26 Account as your Main Banking Account (more than 500€ per Month in incoming transfers or so i think).
  - h4m24 9y ago
    "(more than 500€ per Month in incoming transfers or so i think)" it amazes me how ppl make stuff up all the time
    - tgsovlerkhgsel 9y ago
      https://support.n26.com/read/000001324?locale=en https://support.n26.com/read/000001324?locale=en Salary etc. or 1000 EUR per month, with some other exceptions. Possibly country-specific.
hocuspocus 9y ago
Well, the business strategy for a bank isn't really rocket science. Right now they focus on grabbing market share, which isn't too hard in countries like Germany. They've also introduced a few products (savings, investment, insurance) as a broker, which allows them to gauge the demand among their customer base and develop popular products in-house in the future. While I don't expect them to sell mortgages anytime soon, they have many other ways to make profits. And if they manage to keep their footprint low compared to the way big traditional banks are moving online, I'm sure they'll be fine. Or they could end up being acquired. (I hope they're big enough not to, but consolidation is a real issue in retail banking).

215163831328308 9y ago

Their website[1] front page seems to state up to 5 'free' ATM withdrawals per month. [1]: https://next.n26.com/en-eu/ https://next.n26.com/en-eu/

coinerone 9y ago
Only 5 free withdrawals if you use your N26 Account as your Main Banking Account (more than 500€ per Month in incoming transfers or so i think).
- h4m24 9y ago
  "(more than 500€ per Month in incoming transfers or so i think)" it amazes me how ppl make stuff up all the time
  - tgsovlerkhgsel 9y ago
    https://support.n26.com/read/000001324?locale=en https://support.n26.com/read/000001324?locale=en Salary etc. or 1000 EUR per month, with some other exceptions. Possibly country-specific.

hocuspocus 9y ago

Well, the business strategy for a bank isn't really rocket science. Right now they focus on grabbing market share, which isn't too hard in countries like Germany. They've also introduced a few products (savings, investment, insurance) as a broker, which allows them to gauge the demand among their customer base and develop popular products in-house in the future. While I don't expect them to sell mortgages anytime soon, they have many other ways to make profits. And if they manage to keep their footprint low compared to the way big traditional banks are moving online, I'm sure they'll be fine. Or they could end up being acquired. (I hope they're big enough not to, but consolidation is a real issue in retail banking).