Valentin Stalf, co-founder of the digital bank N26, is stepping down from his CEO position. He will "soon step back from operational responsibilities" and transition to the supervisory board, N26 announced on Tuesday. According to media reports, a preliminary review by the German financial regulator BaFin revealed serious deficiencies in the bank’s risk management, prompting investors to push for changes in the leadership team.
Headquartered in Berlin, N26 specializes in smartphone-based banking. Founded in 2013, it launched its services in Germany and Austria in 2015. The bank now reports having millions of customers across 24 European countries.
BaFin has repeatedly identified shortcomings at N26, including inadequate anti-money laundering measures. The bank was fined over four million euros and, in 2021, BaFin assigned a special commissioner and limited the number of new customers. This commissioner remained in place until the end of 2024.
Speaking to the Handelsblatt, Stalf acknowledged that the company initially underestimated compliance and regulatory processes. However, he emphasized that N26 has invested heavily in better processes and fraud prevention in recent years. Ongoing criticism from BaFin has "prompted further reflection in recent months," he said, and the bank takes all regulatory feedback "very seriously."
Stalf expects the executive team to be strengthened soon. There are also plans to bring additional banking experts onto the supervisory board. After his departure, the executive board will consist of co-founder Maximilian Tayenthal and Arnd Schwierholz, with a new Chief Risk Officer joining in December. "One or two more members on the executive board would be helpful," he added.
The bank recorded profits for the first time last year and expects to remain profitable in 2025. Stalf holds roughly a ten percent stake in N26 and sees a potential public listing "within two to five years."
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