N26 Steps into Trading Arena with New Stock, ETF Features

<p>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.</p><p>German Digital Bank Launches
“N26 Stocks and ETFs”</p><p>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.</p><p>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.</p><p>“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, <a href="https://www.financemagnates.com/tag/n26/" target="_blank" rel="follow">the CEO at N26</a>, commented. “Our customers can spend, save and invest
within one app at extremely competitive rates, with no hidden fees and an
exceptional user experience.”</p><p>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.</p><p>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 <a href="https://www.financemagnates.com/cryptocurrency/neobank-n26-launches-crypto-trading-product/" target="_blank" rel="follow">cryptocurrency
products</a>.</p><p>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.</p><p>N26 Revenue Growing</p><p>News first
emerged <a href="https://www.financemagnates.com/fintech/n26-to-enter-stock-etf-market-with-2024-product-launch/" target="_blank" rel="follow">in late November 2023</a> that N26 aims to expand its current banking and
cryptocurrency offerings. This came as the company published preliminary
results summarizing 2023. </p><p>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.</p><p>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 <a href="https://www.financemagnates.com/fintech/allianz-sells-n26-stake-neobank-valuation-drops-by-6-billion-in-two-years/" target="_blank" rel="follow">to $3 billion</a>. However, the entire fintech
industry suffered over the past months, <a href="https://www.financemagnates.com/fintech/the-great-fintech-slowdown-us-and-uks-funding-struggle-in-2023/" target="_blank" rel="follow">as evidenced by a sharp decline in its
funding</a>.</p><p>Following the Competition?</p><p>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.</p><p>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 <a href="https://www.financemagnates.com/forex/exclusive-xtb-to-offer-up-to-5-interest-on-idle-client-deposits/" target="_blank" rel="follow">with interest on idle funds</a>,
which is another trend in the industry.</p>

This article was written by Damian Chmiel at www.financemagnates.com.