N26: (finally) profits and a change of strategy for the neobank
The second half of 2024 is good news for N26. After seeing the German financial policeman lift restrictions weighing on the neobank last June, it now announces that it has recorded profits for the first time in its history. At the same time, N26 also revealed a notable change in its way of communicating: it will now prioritize profitability and the loyalty of its active users. Unlike its beginnings marked by rapid growth, measured almost exclusively by the total volume of accounts opened, N26 today places emphasis on “ customers with relevant income “.
More credibility
The goal is clear: focus on users generating recurring revenue for the bank, rather than raw numbers that include inactive or little-used accounts. This approach is certainly intended to strengthen the financial credibility of the company, as it appears to be considering an initial public offering (IPO) in the near future. We can also see it as a way of standing out from Revolutwhich communicates very regularly on its total number. The British neobank has just announced in quick succession that it has reached 50 million customers worldwide and 4 million in France alone.
Inescapable Stock Market
The decision to only communicate on “ customers with relevant income » reflects an economic reality: not all account openings necessarily generate income for an online bank. In fact, a large number of users open accounts to take advantage of promotional offers or test the service without using it regularly. By focusing on active customers – that is to say those who use their account for regular transactions or who subscribe to paid services – N26 improves not only its profitability but also its transparency vis-à-vis the market in its entirety. Because all these maneuvers look a lot like preparing for an IPO. This would be a logical next step, although the neobank has not yet officially confirmed anything. The recording of the first profits is in any case a strong signal sent to potential investors, as is the refocusing on active customers which points to a desire to present a solid and sustainable economic model.
