One of the best stories in the German fintech space is the Berlin-based company N26. The company is recognised as one of the most innovative in the field, but now it is increasingly have to deal with competition, in particular, from other European start-ups.
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One company, in particular, is looking to aggressively build a presence in the German fintech market. The British start-up Revolut recently raised 66 million dollars in order to consolidate its German expansion plans. The company has stated that it aims to win 50,000 customers over the next few months.
One of the signs of how tension in the market is increasing is a recent twitter exchange between the two competitors in which N26 obliqued indicated that Revolut had a very similar credit card to its own.
Revolut has, however, responded with the announcement of its recent funding and the desire to push more aggressively into Germany and has officially launched a German site.
The innovation that the British company brings is its multi-currency function. Customers are potentially able to keep their money in as many as 26 different currencies and should be able to exchange between currencies in their account without charges. Withdrawals made from abroad are also free of charge. With these features, their app has been popular and Revolut has a total of 850,000 account customers, according to the company.
By comparison, N26 recently announced half a million customers which represents good customer growth, although the number is still small in relation to the established banks.
Revolut and N26 will be fighting for the digital target group in the coming months. Both have made an effort to innovate in different areas: Revolut by allowing a multitude of currencies; N26 by launched several banking, asset management and insurance features on its banking platform. In addition, competition with traditional banks will also show who is able to tie their customers to their brand and to actively use their products.