N26 intends to use proceeds from the funding round to advance the product development and strengthen its footprint in core markets
German challenger bank N26 has extended its Series D funding round to $570m by securing an additional investment of more than $100m from all of its major investors.
The bank intends to use proceeds from the funding round to advance the product development and strengthen its footprint in core markets, where demand for mobile banking is high.
N26 co-founder and CEO Valentin Stalf said: “The adoption of digital banking is accelerating as the world adjusts to a new normal. As one of the world’s leading challenger banks, N26 is front and center in this shift.
“We are fully committed to spearheading digital innovation globally, creating world-class mobile banking solutions for all our customers around the world.”
N26 is anticipating a long-term shift to digital banking adoption after the reopening
The bank said that the extension of financing highlights the commitment from investor base to its long-term vision to build a major mobile banking platform.
N26 said that based on changes in consumer spending, banking habits and attitudes towards saving in the wake of the COVID-19 crisis, it is anticipating a long-term shift to digital banking adoption.
Some of the few product features launched by the company in the US market, include Apple Pay integration, enabling customers to get their pay check 2 days earlier with direct deposit, an ATM locator maps in the app which guides customers to withdraw money without fees.
In addition, customers are also getting benefits from the bank’s cashback offers and discounts on music, fitness, meditation and lifestyle brands as part of its perks program.
N26 is planning to invest in expanding its foot-print across Europe and the US in the coming months.
After entering into the US in August 2019, it has acquired 250 thousand customers within a span of 5 months.
N26 US CEO Nicolas Kopp said: “In the last month, we’ve seen many people moving away from cash towards contactless payments and e-commerce. We are also encouraged to see that many of our U.S. users are putting their salaries into their N26 accounts, signaling that N26 is serving as a primary banking solution for them.”
In September last year, it launched its services in Switzerland, offering free euro bank accounts for the first time.