The license has been awarded by the Federal Financial Supervisory Authority and the European Central Bank.
N26 founder and CEO Valentin Stalf said: “This banking license is an important additional step for us to sustainably change the value chain in retail banking. This will allow us to significantly enhance the diversity of our product portfolio. For our customers, that means access to the best financial products, right on the app.”
The bank plans to offer real-time credit, increased security through artificial intelligence, and expense sharing in the next 12 months.
N26 said that the license empowers it to strengthen its platform of banking products.
Instead of developing all products in-house, the bank follows an approach of partnering with the most innovative FinTechs and financial providers around the world.
The bank raised $40m in series B funding round in June.
According to the bank, opening a new bank account takes only eight minutes and can be done directly from your smartphone.
Founded in early 2013 by Valentin Stalf and Maximilian Tayenthal, the bank currently has presence in Austria, France, Germany, Greece, Ireland, Italy, Slovakia and Spain.
Gunter said: “We’ve leveraged the most modern technology to build one of the leanest banks in the world. This significantly sets us apart from competitors and allows us to offer our users the optimal mobile banking experience in Europe. The license will enable us to bring additional innovative products to market, starting in the next few weeks.”
