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Ten class afterpitching onstageat TechCrunch Disrupt in London , fintech N26 hasreportedits first ever quarterly ( pretax ) profit . The competitor bank with millions of customers across Europe generated a net operating income of € 2.8 million during the third fourth of 2024 ( or $ 2.9 million at current telephone exchange rates ) .
This is an important milepost for the startup but also significant word for the fintech industry . Challenger banks like Monzo , N26 , Revolut , and Starling used to be some of the most hype startups in Europe . They raisedbillionsin financial support , expandedaggressively , andoverspentto reach that next financing around .
Now it ’s metre to sit down and do the mathematics . Large funding rounds are harder to obtain and investors now often require a clear path to profitability .
Revolut isextremely profitable — $ 428 million in final profits for 2023 alone — while Monzojust queer the linewith a pretax profits of £ 15.4 million for 2023 ( $ 19.4 million ) . N26 is following suit .
For several years , Germany ’s financial regulator BaFin enforce a cap on new sign of the zodiac - ups as a sanction to force the startup to improve its anti - money laundering processes . But itliftedthe hood in the beginning this year and that has had a significant impact on the company ’s bottom blood .
grant to N26 , more than 200,000 people currently open an account with it every calendar month . Interestingly , N26 stopped apportion the full number of users it has . Instead , the company focuses on its 4.8 million “ revenue - relevant ” customers .
The inflow of newfangled users has lead to a 40 % revenue increase for the fintech in 2024 compared to 2023 . And N26 is on track to sire € 440 million in annual receipts this year .
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As a monitor , in addition to free accounts , N26 offer paid subscription with access to more fiscal services and features . The company also offers savings story , stock , and crypto trading as well as credit products .
Now let ’s see if N26 cope to persist in the black as 50 % of its 2024 revenue come from interest gross from client deposit and the company ’s retail loaning activity . With interestingness rates go down in Europe , that source of revenue will also be more unmanageable to maintain at a eminent layer .
