N26 will create 1,000 jobs after fundraising of 775 million euros

German online bank N26 will hire 1,000 additional people after raising more than 775 million euros from private investors.

N26 called it “the biggest funding round to date for a digital bank in Europe” which took the Berlin-based startup’s valuation “to over $ 9.0 billion.”

The round was led by New York-based technology investors Third Point Ventures and Coatue Management, and joined by Dragoneer Investment Group as well as existing N26 investors.

“With our fresh capital, we are in pole position to become one of the largest retail banks in Europe, all without a single branch,” said Valentin Stalf, CEO and co-founder of N26, in a statement.

The bank plans to add 1,000 additional employees to its workforce of 1,500 worldwide. The new hires will focus on products, technology and cybersecurity, he said.

Founded in 2013, N26 offers free online banking services only and is one of Germany’s most prominent financial technology or “fintech” companies.

It now has seven million customers in 25 countries.

Maximilian Tayenthal Co-founder and co-CEO Valentin Stalf Co-founder and co-CEO

Its rapid growth is based in part on accelerated identification procedures for new customers.

But N26 has been in the crosshairs of German financial watchdog BaFin since 2018 after a German media investigation found it was possible to open an account with fake IDs.

BaFin has repeatedly ordered the bank to strengthen its internal controls and fined the company € 4.25 million in June.

N26 said the fine was linked to around 50 “suspicious transactions” related to money laundering between 2019 and 2020.

The company said it reported suspicious transactions to BaFin too late for them to be properly investigated.

N26 says it has since put in place measures to improve the disclosure of suspicious activity.

“N26 is taking its responsibility in tackling the growing threat of global financial crime,” he said last month.

In the statement, N26 added that it had agreed with German regulators to limit new customers to 50,000-70,000 per month for the time being.

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