N26 expects to reduce its net losses by 50% in 2023, aiming for monthly profitability by the following year. The German digital bank has also announced plans for a new investment product that will allow users to invest in stocks and ETFs.
According to preliminary results, N26 anticipates a net loss of €100 million for 2023, alongside revenues exceeding €300 million—a 30% increase from the previous year. This revenue growth is attributed to significant rises in account usage and customer activity, despite the company’s ability to expand its customer base being restricted by a limit set by the regulator Bafin.
In 2021, Bafin imposed a cap of 50,000 new customers per month due to concerns about anti-money laundering controls. Starting in December, this cap will increase to 60,000, which is expected to aid N26 in achieving monthly profitability in the latter half of 2024.
Having exited the US and UK markets, N26 also withdrew from Brazil earlier this month as it concentrates its efforts on continental Europe. In partnership with the fintech Upvest, N26 plans to enable customers to trade stocks and ETFs directly through the app in the first half of 2024.