The Berlin-based digital bank N26 announced today (Wednesday) the launch of a new trading product that will allow account holders to buy and sell stocks and ETFs directly in the N26 mobile banking app.
German Digital Bank Launches “N26 Stocks and ETFs”
Initially launching in Austria, the trading product will charge a fixed fee of 0.90 EUR per trade with no additional costs. N26 says this pricing is highly competitive compared to other brokerages.
A key feature of the new trading product is fractional share investing, which allows customers to purchase partial shares starting from 1 EUR. This aims to improve accessibility for those looking to invest smaller amounts.
“Following the launch of N26 Instant Savings and N26 Crypto, N26 Stocks and ETFs will give our customers the ability to manage all their finances within the N26 app,” Valentin Stalf, the CEO at N26, commented. “Our customers can spend, save and invest within one app at extremely competitive rates, with no hidden fees and an exceptional user experience.”
Over 100 ETFs will be available at launch, with a planned expansion over the coming months to offer over 1,000 stocks and ETFs to customers in both Germany and Austria. Additional European markets are expected to follow.
N26 also plans to introduce free savings plans in the future, allowing customers to set up recurring investments with no fees. This would further expand the digital bank's offerings beyond its existing bank accounts, savings, and cryptocurrency products.
Starting today, the trading product will roll out first to eligible N26 customers in Austria. Expansion to Germany is expected over the next few months.
N26 Revenue Growing
News first emerged in late November 2023 that N26 aims to expand its current banking and cryptocurrency offerings. This came as the company published preliminary results summarizing 2023.
N26 is expected to generate revenue exceeding €300 million, representing a growth of over 30% year-over-year. This increase is mainly due to a rise in customer activity and an increase of 8% in revenue-generating customers, now totaling 4 million. Additionally, transaction volume has grown considerably, with projections surpassing €110 billion.
2023 brought some challenges as well. As Finance Magnates reported in April, Allianz SE subsidiary divested its stake in the neobank, and its valuation dropped $6 billion in two years to $3 billion. However, the entire fintech industry suffered over the past months, as evidenced by a sharp decline in its funding.
Following the Competition?
By expanding its offerings to include stocks and ETFs, N26 is following the path of the largest players among challenger banks, joining brands like Revolut and Starling Bank, which have long offered users the ability to save and invest.
Similar moves in the European market recently came from publicly traded fintech XTB, which, through ETFs, wanted to give its users the possibility of more passive investing. It additionally supplemented its offerings with interest on idle funds, which is another trend in the industry.
