N26’s disregard for profit is digital banking’s Uber moment

Hmmm… What do we make of this?

The thing with N26 it will be profitable, unless it does something so bad, so being profitable doesn’t need to be something they care about, it will happen in time.

Whenever they have needed a cash injection they have not struggled, and investors get to see projections and so on, and can base then on actually how N26 act, the fact it can raise money so easily normally is a good idea of how stable a company is, investors would not waste so much so often.

There will come a time that profitability will be something they aim for, but if it can survive for a few more years without being in profit and launching a working product in more countries, it can pick and choose where to operate, where to make profit, which will be there smart move.

A few banks did exactly the same, Barclays and HSBC are two of the biggest, launched in a number of countries, it didn’t work, they sold them, generally not at a loss. So they could concentrate of the profitable parts of the business is profitable countries.


N26 could have worded it better but growth is really important at this stage. If their investors are willing to play the long game then expanding is probably the better choice.

I also don’t think Uber is really a fair comparison either. I’m not sure where its future profits would come from in it’s core business without raising prices, whereas a bank with more customers and a larger balance sheet has more potential. Not that I don’t think Uber is going to figure something out.