German digital bank N26 is shutting down its U.S. operations, lower than two-and-a-half years after it launched in the nation.
N26’s 500,000 American prospects will now not have the opportunity to use its app from Jan. 11, 2022, the firm mentioned in a statement Thursday.
The Berlin-based fintech, which was valued at $9 billion in a current funding spherical, mentioned it wished to shift focus to its core European enterprise.
“U.S. customers will be able to use their accounts as usual until January 11, 2022, and will receive further instructions on how to withdraw their funds to ensure a smooth transition,” the bank mentioned.
It isn’t the first time N26 has pulled its companies from a significant English-speaking market. The agency withdrew from the U.Okay. early final yr, blaming the nation’s exit from the European Union. N26 had reportedly been struggling to acquire U.Okay. customers.
The information is a reminder of how troublesome it has been for European fintechs to develop their companies in the U.S.
British digital bank Monzo, which began testing its service in U.S. in 2019, lately withdrew its utility for a U.S. banking license.
On the flip facet, American on-line brokerage Robinhood tried and failed to launch internationally, scrapping plans to roll out a U.Okay. model of its app final yr.
In addition to refocusing its consideration on Europe, N26 mentioned it’ll additionally ramp up spending on new options like funding merchandise in the coming yr. It is also planning to develop into Japanese Europe amid rising demand in the area.
The corporate mentioned it’ll intention to transfer U.S. employees to different areas of its enterprise “where possible.”
N26’s U.S. growth, which started in July 2019, has confronted plenty of setbacks. For one, the agency laid off 10% of its New York-based workforce final yr, citing challenges ensuing from the coronavirus pandemic. Nicolas Kopp, the head of its U.S. operations, subsequently stop the bank.
N26 can be going through regulatory stress in its house market. German regulators fined the bank $5 million in June for failing to submit suspicious exercise experiences on cash laundering on time.
And final month, as N26 introduced a brand new $900 million money injection from buyers, the firm mentioned it had reached an settlement with the watchdog BaFin to restrict what number of prospects it onboards every month.
N26 has raised a complete of $1.7 billion in funding to date. The corporate counts the likes of U.S. funding supervisor Coatue, Singapore sovereign wealth fund GIC and tech billionaire Peter Thiel as buyers.