The app of the digital bank N26 has been struggling with serious problems for a large part of the afternoon, as a result of which customers cannot pay via the app.
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A spokesperson for N26 has no explanation for the breakdown for the time being, but says that everything possible is being done to remedy the problem.
Initially, users trying to open the app received error messages ranging from “an unexpected error has occurred” to “something went wrong, we’ll check it out in a second.” In addition to error messages, the message later appeared that the bank is busy with ‘routine maintenance’.
Such maintenance during working hours is very remarkable. Normally, banks schedule their maintenance at times when users are least affected, usually scheduled at night or during the weekend.
Fraudsters
The digital breakdown coincides with reports that N26 had to adjust its systems from the German regulator Bafin because it turned out that a lot of fraudsters use the banking app. According to the German newspaper Handelsblatt The regulator gave the bank one last chance to put things in order.
N26 bank accounts are being used by fake shops and scammers on the eBay auction site. According to the bank, the breakdown has nothing to do with tightening the anti-money laundering policy.
N26 is a so-called neobank that is also active in Belgium. The number of customers in Belgium would be between 100,000 and 200,000. The bank took off because it offered free services, such as Apple Pay. These are currently not or hardly usable.
N26 is growing internationally at a rapid pace, thanks to the use of venture capital. Recruiting customers is a priority, making a profit is not yet. In 2019, N26 posted a net loss of 217 million euros. “We’ll see how long they last,” a classic banker of a major Belgian bank reacted to the aggressive expansion. The bank had 7 million customers last year after increasing by 2 million in 2020 and claims to be the digital leader in the European banking sector.
Digital neobanks are also a concern for regulators in the UK. There it are players like Monzo and Revolut who profile themselves as platforms for easily transferring money internationally.
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