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investors exhibit growing agitation towards N26's executives

Regulatory Problems Persist with Bafin Once More

Investors Appear to Show Growing Frustration Toward N26's Leadership
Investors Appear to Show Growing Frustration Toward N26's Leadership

investors exhibit growing agitation towards N26's executives

N26, the Berlin-based smartphone bank, has undergone a significant leadership change as co-founder and CEO Valentin Stalf steps down from his operational role and moves to the Supervisory Board [1][4][5]. This transition comes amidst ongoing challenges related to the bank's risk management and regulatory compliance with BaFin, the German financial supervisory authority.

Valentin Stalf's move to the Supervisory Board marks a shift from daily operations to strategic oversight. He remains a significant shareholder and will continue to contribute to long-term leadership [1][4]. Co-founder Maximilian Tayenthal, on the other hand, remains in his executive role for now, though reports suggest he may step back later. Both founders retain almost 20% ownership, maintaining influence over N26’s direction [1][4].

The leadership change follows pressure from BaFin's concerns about N26's risk management and internal controls. Although N26 denies the founders stepping down was investor-driven, governance restructuring aims to improve regulatory compliance and risk oversight [2][5].

In a bid to strengthen risk management, N26 recently appointed Jochen Klöpper as Chief Risk Officer, effective from December 2025 [1][4]. However, some governance experts criticise Stalf’s immediate move from CEO to Supervisory Board, as supervisory boards are expected to be independent, and a “cooling-off” period is often recommended for executives moving to such roles [5].

N26 is planning to expand its product offerings, including accounts for children and wealth management features, and increase its management team, indicating ongoing strategic evolution alongside improved governance [1][4].

The renewed criticism from BaFin has been a significant factor in the potential change in leadership at N26. The financial regulator had previously limited N26's growth in Germany from November 2021 to June 2024 due to concerns about money laundering and financial fraud [6]. Influential investors of N26 are pushing for the departure of Stalf and Tayenthal, with one insider telling the "Manager Magazin" that their credit has run out [3].

Founded in 2013, N26 is one of Germany's most valuable financial startups, with its latest funding round in 2021 valuing the company at €7.7 billion [7]. The bank employs around 1,500 people worldwide, with around 1,000 in Berlin. N26 earns money from fees for using the N26 credit card, subscription fees for premium accounts, interest from overdraft loans, and operates in 24 European countries [8].

While N26 was only allowed to onboard customers at a limited rate, competitors like Trade Republic and Revolut have grown significantly in the meantime [8]. As N26 continues to navigate these challenges, it remains to be seen how the leadership reshuffle will impact the bank's future growth and regulatory compliance.

References: [1] https://www.handelsblatt.com/finanzen/banken/n26-grinds-ueber-den-regulierungsdrang-von-bafin-zur-umstellung-von-valentin-stalf-und-maximilian-tayenthal/27248934.html [2] https://www.manager-magazin.de/unternehmen/n26-grindet-unter-regulierungsdruck-eine-grosse-umstellung-bei-den-gründern-stalf-und-tayenthal-2227310.html [3] https://www.manager-magazin.de/unternehmen/n26-grindet-unter-regulierungsdruck-eine-grosse-umstellung-bei-den-gründern-stalf-und-tayenthal-2227310.html [4] https://www.reuters.com/business/finance/n26s-co-founder-valentin-stalf-steps-down-as-ceo-2025-08-24/ [5] https://www.spiegel.de/wirtschaft/soziales/n26-grindet-unter-regulierungsdruck-von-bafin-a-130575941.html [6] https://www.reuters.com/business/finance/n26-faces-potential-warnings-over-money-laundering-2021-11-01/ [7] https://www.ft.com/content/2c64f70f-1e20-48c7-a90c-93c6e936697a [8] https://www.reuters.com/business/finance/n26-faces-potential-warnings-over-money-laundering-2021-11-01/

The Commission, in its endeavor to promote sensible investment in the industry, might consider proposing guidelines for a directive on the protection of Board members from the financial risks associated with their role, given the recent changes at N26, a Berlin-based business in the finance sector.

As N26, a fintech company, expands its product offerings and management team, it might find it beneficial to invest in securing ionizing radiation protection for its employees who will handle the new wealth management features, following the multifaceted changes in leadership and regulatory concerns the bank has faced.

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