Germany-based digital bank N26 has announced its plans to exit the US market to focus on the European business.
N26 stated that its digital banking services will not be available to customers in the US after 11 January 2022.
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The digital bank said it will “sharpen its focus on its European business” and is planning to expand into markets in Eastern Europe.
N26 is also looking to expand its product portfolio to include investment products in the coming years.
The announcement comes close on the heels of a $900m Series E funding round, which valued the online bank at $9bn.
The US is not the first market N26 is leaving. Last year, the digital lender pulled the plug on UK operations citing the country’s exit from the European Union.
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By GlobalDataThings are not looking good for the lender in its home market as well. In May this year, the German financial regulator ordered N26 to address anti-money laundering lapses. Later, the regulator imposed a fine of approximately $5m.
Additionally, BaFin capped the number of customers N26 can take on in a month to 50,000 and appointed a representative to monitor the bank.
N26’s move in the US will impact nearly 500,000 accounts and the bank stated that “US customers will be able to use their accounts as usual until 11 January 2022 and will receive further instructions on how to withdraw their funds to ensure a smooth transition.”
Last month, Monzo, a UK-based online bank, withdrew its application for a banking license in the US.
