N26 Amongst Group of Digital Banks to Make Big Changes in Response to Crisis

N26 said they are furloughing 10 percent of their staff, cutting back on advertising spending and reconsidering their planned launch in Brazil; the moves by N26 follow similar moves by fellow challenger banks who have seen executives take big pay cuts and furlough staff in the short term; the company is hoping their capital raise from 2019 will be able to last longer than initially thought; “We have positioned ourselves quite conservatively — so our latest fundraising will last a lot longer than the end of this year,” Georg Hauer, Head of Germany, Austria and Switzerland at N26, told the Financial Times. “We hear from other start-ups that it is a difficult time to raise funds.”; N26 still likes their positioning and overall product appeal as they believe they can gain market share; The number of people opening bank accounts with us hasn’t changed drastically — but the demographic has changed — the average age of N26 customers has increased,” Hauer said to the FT. “People have got to try something new and the chance they will stick with it is quite high.” Financial Times

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