N26 Finally opens up in the US, despite a year of delays

That’s actually quite big news, they will be offering something that Americans don’t get with traditional banking and that is instant access to transfers they receive. Rather than waiting for the payment to clear, which is normal in US banking.

Does the fact that they are offering accounts via Axos (who are the federally regulated and FDIC-insured entity here), mean that their US offering will be more of the status of, say Revolut, here?

I believe you’d still get the FDIC guarantee of 1m$ though

Besides that yes they’re essentially an e-money xd

It’s the same as in the UK, if you have an account with Lloyd’s and Halifax your protection is combined so you are only protected up to the statutory amount. In the USA it’s the same any deposits with axos or n26 are combined.

It’s not like an e-money licence here, it’s a full bank account, so it’s more of a white label product, very similar to what starling does, provides access to others.

It’s virtually impossible for a new bank to obtain a banking licence in the USA, that is why nearly all new banks are purchases of current banks or partners. It takes millions and years to get a banking licence there.

So basically it’s a FDIC protected account. Because it’s a partner of a FDIC protected bank.

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Halifax is a brand of Bank of Scotland and Bank of Scotland is registered separately from the Lloyds Bank brand with the FCA. However, all are part of LLoyds Banking Group. The same is true for Royal Bank of Scotland and Natwest which are registered separately.

However, First Direct and HSBC are not registered separately.

I’m aware of that, but when you are writing something quickly on the move, you do sometimes get names mixed up, but everyone understands what I was saying. but thanks for pointing it out.