N26: Europe`s Leading Challenger Bank
Case Code: CLBS167
Case Length: 8 Pages
Period: 2015- 2020
Pub Date: 2021
Teaching Note: Available
Industry: Financial Services
Themes: Banks and Banking, Business Environment, Business Level Strategie
The case “N26: Europe’s Leading Challenger Bank” talks about the factors that led to N26, a Germany-based neobank, becoming the highest valued German startup and one of the highest valued FinTechs in the world. The case starts with a brief history of N26. It covers the innovative products and services launched by N26 which helped it to connect with millions of customers. The case also highlights the competition faced by N26 from FinTech companies like Revolut, Monzo Bank Ltd. (Monzo), and Atom Bank and how it was placed vis-à-vis the competition. The case ends with the future plans of N26 which include redesigning its banking operations and expanding geographically.
- Analyze the business strategy used by a digital bank startup to reach the maximum number of customers.
- Identify the strategies used by a digital bank to achieve a competitive advantage over its competitors.
- Examine the challenges faced by a startup as it tries to grow and expand its business beyond the home country.
In December 2020, N26, a Germany-based neobank announced its plans to raise another funding round before a possible initial public offering (IPO) in 2023. By the end of 2020, the bank had raised around US$ 800 million in venture capital. At the same time, N26 became one of the highest valued FinTechs in the world and the highest valued German startup with a valuation of US$ 3.5 billion. It was also the first European challenger bank to enter the US market.
Launched in 2015, N26 became one of the preferred banks among the challenger banks (like Revolut , Monzo , Atom Bank , and many more) in Europe and served more than seven million customers in 25 markets. The innovative digital technology and financial services offered by N26 helped it to consolidate its presence in the European market and enter the US market in July 2019. By the end of 2020, the bank had 0.5 million customers in the US.
Competitive Strategies; Competition to Retail Banks; The Digital Age of Banking; Evolution of Startups; Differentiation; Technology; Innovation; Digital Banking; Challenger Bank; Startups; Fintech; N26; Monzo; Atombank; Revolut
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