N26 says it has attracted 250,000 users in the U.S. It claims new customers are shifting funds from the likes of Chase and Citibank.
The financial technology company, which is backed by controversial Silicon Valley venture capitalist Peter Thiel, started life in Berlin nearly seven years ago. It's since expanded throughout Europe and began U.S. operations in July 2019.
"We track where the money comes from when people fund their accounts, and I definitely see some of these big-name banks crop up quite frequently," N26's U.S. CEO Nicolas Kopp told CNBC in an interview. "So far, that's where I see a lot of customer growth for N26."Mastercard debit card. As is the case with rivals like Monzo, Revolut and Starling, people can sign up for an account with N26 within minutes and don't pay any additional foreign exchange fees when spending abroad.
The bank remains a long way from challenging the dominance of the Big Four in the U.S. — which also includes Wells Fargo and Bank of America — and faces stiff competition from U.S. upstarts like Chime, which reported 5 million users last year. N26 said it has 5 million customers globally. N26 hasn't broken out its user numbers to disclose how many customers are switching their accounts from the big banks. That's a problem for many online banks across the pond, with Monzo having claimed that only 30% of its customers use it as their primary account.
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