N26 co-founder Valentin Stalf is stepping down as joint CEO of the German digital bank amid investor discontent over regulatory issues. Following a transition period, Stalf will join the N26 supervisory board. He expressed that this move is aimed at leveraging his extensive experience to strengthen the bank.
Maximilian Tayenthal, who co-founded N26 with Stalf 12 years ago, will continue in his role as CEO, with the two still holding nearly 20% of the company’s shares. Recently, the Financial Times reported that investors were negotiating Stalf’s departure as co-CEO by September 1, with Tayenthal expected to follow by December 31.
Investors sought to remove the founders after a special audit by BaFin uncovered “weaknesses in the internal control systems, processes, and overall organization,” as stated in N26’s annual report. The regulatory body has indicated plans to issue a formal warning to two members of N26’s management board and implement a special monitor.
This recent regulatory challenge follows last year’s lifting of a customer onboarding cap imposed by BaFin due to inadequate money laundering controls, which included a €9.2 million fine. Initially set at 50,000 new customers monthly, the cap was increased to 60,000 in 2023, significantly limiting N26’s growth potential.