N26 widening losses show what happens when you don't prioritize compliance and lack focus🚨; Crypto Winter is getting Freezing Cold 🥶; Banks are crypto companies now 🤯

FinTech is Eating the World, 13 October

Hey Everyone,

Happy Thursday! Today’s issue is really important on many different levels as we’re going to look at N26 widening losses that show what happens when you don't prioritize compliance and lack focus (bonus are reads on the future of neobanks & challenger banking strategy triangle), Crypto Winter that is getting Freezing Cold (this will shock you, plus the bonus of a list of top Web3 & Crypto VCs + a guide how you can triple your chances of getting funded), and banks that are apparently crypto companies now (we haven’t seen this before!). Let’s jump straight into the good stuff:

N26 widening losses show what happens when you don't prioritize compliance🚨

The news 🗞 2021 was a challenging year for Berlin-based neobank N26, which just posted its latest results that showed rising losses and slowing customer growth.

More on this 👉 Here are the key numbers at a glance:

• Gross revenue grew by 50.3% to €182.4M, while net interest and commission income grew by 67% to €120.3M.

• N26 reported a net loss for the year of €172.4M, 14.45% up on the previous year.

  

• The bank grew its user base by over 1M YoY to 8M customers and increased revenue-relevant customers to more than 3.7M. That’s nearly 50%!

• Transaction volume grew 59% to €80B (FY-20: €50.3B) while customer deposits increased by 52% to €6.1B (FY-20: €4B). Not bad!

A refresher ♻️ Launched in Germany and Austria in January 2015, N26 began as a current account with a Mastercard. It has since moved into areas such as crypto and stock trading, attracting more than 8M customers in two dozen countries.

N26 has been refocusing its resources on core European markets after high-profile exits from the US and UK. The firm closed down its US operations in January but is still active in Brazil. The Berlin-based startup previously withdrew from the UK in 2020, citing Brexit.

Why is this important? 🤔 Ultimately, it’s all about (lack of) compliance and focus. Here’s more on that + the takeaway: