N26 continues to accept new customers despite facing criticism from Bafin

In a recent development, Valentin Stalf, co-founder of the digital bank N26, has announced his step back from his role as co-CEO. He will join the supervisory board after a transition period, as announced in a statement.

The transition comes as Marcus Mosen takes over as the new co-CEO, effective September 1st. Mosen, who has been a part of N26's leadership team, will share responsibilities with Maximilian Tayenthal, the other co-founder.

The news follows a series of regulatory scrutiny faced by N26. The German financial regulator, BaFin, has temporarily appointed a special representative to monitor the bank's internal processes. Andreas Dombret is set to become the new chairman of N26's supervisory board in October.

Reports from Manager Magazin and Handelsblatt suggest that an interim report by BaFin was critical of N26. Tayenthal admitted during the Handelsblatt Banking Summit in Frankfurt that the bank did not pay enough attention to regulatory issues in its early stages.

However, Tayenthal does not foresee a ban on new customers for N26. He also stated that there is no change in the customer number cap for the digital bank, with Bafin having limited new customer growth to a maximum of 50,000 registrations per month.

Despite the regulatory challenges, N26 has been in "very intensive exchange" with BaFin, according to Tayenthal. He also expects a decision from BaFin on the possible reappointment of a special representative in the next few weeks.

BaFin has also fined N26 €9.2 million for delayed suspicious activity reports and shortcomings in its control systems. The interim report reportedly raised questions about the amount of credit N26 could lend to its customers, but no new information about the bank's financial status or operations was provided.

Tayenthal remains optimistic about the future of N26, stating that he does not anticipate a customer number cap by German financial regulator Bafin. The Handelsblatt Banking Summit, where these statements were made, focused on the future of banking and financial technology in Germany.