Digital bank N26 arrives to dispute market with Nubank

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Two years after announcing its intention to operate in the country, the German digital bank N26 received authorization from the Central Bank to operate in Brazil. The new digital bank arrives to take customers and market from the two largest financial startups in the segment, Nubank and Inter.

The N26 should initially serve only individuals, offering a portfolio of financial services linked to both digital and partner accounts. Then, other products would be offered, such as credit and investment lines.

One of the highlights will be the service called Spaces, subaccounts contracted via application that would serve, for example, to separate money destined for emergencies, vacations or future purchases, eliminating the need for the customer to have an account for each objective.

Financial mazes

The N26 has existed since 2013, operating with a base of five million customers spread across 25 countries. In recent rounds of investment, fintech raised almost $ 570 million, increasing its market value to $ 3.6 billion.

Headquartered in São Paulo, he will be headed by Eduardo Del Guerra Prota, known in the market for his stints at Cielo and Santander (Prota has been on the N26 since the beginning of its structuring in the country, in 2019).

The German digital bank finds in Brazil an ideal market for its expansion. The country has one of the largest banking concentrations in the world: only five institutions hold 85% of the total assets of the commercial segment, but without presenting innovations in services. It is in this niche that startups focused on the financial sector are growing, heated and not affected by the country’s poor economic performance.

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The N26 Spaces must hit one of the biggest financial problems of the population: according to SPC Brasil (former Credit Protection Service), 58% of Brazilians admit that sometimes or never plan their financial life.

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