As soon as the ceiling on new customers (50,000 then 60,000 new customers per month) imposed by the German supervisor since October 2021 is lifted, the N26 online bank sets out again to conquer commercially. In France, this translates into a new offer, an account paid at 2.26% for free standard accounts (from 2.8% to 4% for Smart & You or Metal plans), without cap or conditions of use. , with interest calculated daily and paid monthly.
Online banks intend to take advantage of positive interest rates to strengthen their deposits and diversify their sources of income, and are thus increasingly engaging in the battle for interest-bearing accounts. Remember that in France there is an unspoken rule within the banking profession which is based on a fixed rate real estate loan (the bank taking charge of the interest rate risk) in exchange for free demand deposits. This unwritten rule, which applies to large network banks, offers greater flexibility to “small establishments” as long as this does not endanger the major balances.
Neobank N26 plans to reach profitability in the second half of 2024
In pursuit of profitability
But a deposit rate with the European Central Bank of 4% – undoubtedly reduced to 3.75% next week – deposits become an attractive product, especially for challengers seeking profitability at all costs. The digital bank Sumeria (formerly Lydia) had already welcomed its new name this month by offering an account bearing 2% interest. N26 therefore follows suit. Remember that only Fortuneo (Arkéa Crédit Mutuel) is profitable among all French online banks (Nickel is also profitable but on a different model).
The German online bank does not hide its objectives: “this launch is also part of the N26 2024 strategy to become profitable each month in the coming weeks, a few days after the end of the growth limits affecting us at the global level”, indicates a spokesperson. The German bank plans to achieve overall profitability in the second half of 2024 while interest income continues to grow (40% of the total in 2023 compared to 30% in 2022), in order to put itself in working order for an IPO within two years.
