German Fintech N26 starts testing phase in Brazil to compete with Nubank


This Thursday (4) arrived in Brazil the German fintech N26. Valued at US$9 billion (R$49.904 billion), the company starts its operation by selecting 2,000 people to test the brand’s application.

The company has been selling itself as a “2nd generation” fintech in an attempt to differentiate itself from pioneers Nubank, Banco Inter and C6 Bank in Brazil. The idea is, in addition to facilitating access to financial institutions, to improve Brazilians’ relationship with money. There are still no details on how this will be done.

The bank has shown interest in the Brazilian market since at least February 2019, when it was already waiting for a license from the Central Bank. The official launch, open to all interested parties, will take place in the first half of 2022. It is the bank’s first 100% local team, which has 50 employees in Brazil.

“Digital access and a closer and more user-centered relationship allowed the opening of millions of digital accounts. But, even so, the Brazilian’s relationship with money has not improved”, says Eduardo Prota, director of N26 Brasil, in a statement released by Bank.

The N26 was created in 2013 and is present in Europe — at the beginning of 2020, the bank announced that it would no longer operate in the UK because of brexit.

In 2019, the application was also made available in the United States. Brazil will be the 26th country to receive fintech, which earlier this year celebrated 7 million customers.

Its last round of investments, on October 18, resulted in an investment of US$ 900 million (R$ 4.99 billion), leading to a pricing of US$ 9 billion. In the 2019 and 2020 results, the company reported that operating losses had increased due to “heavy investment in staff and international expansion”, in an operating model similar to that of Nubank.

In 2020, they say, the increase in revenues allowed the bank to consolidate its losses, and the loss in its main business in Europe was €110 million (R$704,539 million).


You May Also Like

Recommended for you

Immediate Peak