• N26, a Berlin-based neobank that provides digital banking services to both the B2C and B2B segments, has announced plans to discontinue its US operations in early 2022, choosing instead to focus exclusively on the European market. Its 500,000+ US customers will be unable to continue banking with N26 after January 11, 2022.

• Following the discontinuation of its US operations, N26 aims to expand its digital banking experience in Europe into new verticals, including investment products. It also plans to explore expansion into new markets in Eastern Europe and to go ahead with its intended expansion plans in Brazil.

<ul><li> Analyst QuickTake: The decision follows N26’s Series E funding round worth USD 900 million in October 2021, bringing it to a valuation of USD 9 billion. It is also in line with the company’s intended use for the funds, which is to further strengthen and expand its presence in European markets. While the company has set ambitious geographical expansion targets in the past, the company has struggled to gain its foothold in markets outside Europe. In 2020, the company also ceased its operations in the UK, citing Brexit.</ul>