Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

N26 will be leaving the UK

n26.com

Post reply on HN
Print view View original

61–70 of 517 posts

Re: N26 will be leaving the UK

#61

Post by scarejunba »

The comments here are odd. N26 isn't making any political statements. They're just saying they don't want to apply for a UK banking licence now that they can't use an EU one.

The response "they're only doing this because they can't make enough money in the UK" seems kind of vacuous. Of course that's why they're doing it. The cost of requiring a UK licence outweighs the benefit of being there.

There seems to be some sort of desire to say "Brexit didn't cause this". It's pretty clear it did because they could previously operate without a UK licence and now they can't and it doesn't cost low enough to be worth it for them. I don't think it matters in the big scale since there's Monzo and Starling, but having the EU fracture will be annoying since markets will fracture.

As for the criticisms of starting in the UK post the Brexit vote, I don't understand if you guys have run businesses before, but you have to take risks. Things can change, and for the right growth opportunity you go for it.

As an example, post-GDPR I set up the European arm of our data business, and even though Brexit was on the horizon, we set up in London. Why? Because the opportunity was big enough and we could work our way to a solution in time that would meet what we needed and because (being entirely Anglophone) establishing a bridgehead in the UK made sense. It's a successful business now and we have teams in mainland Europe now. It's like running towards one of those closing doors so that you can slide under it like a hero. You don't want to be trapped under the door, but sometimes what's on the other side of the door is worth the risk.

Re: N26 will be leaving the UK

#63

Post by davidw »

_n_b_ wrote: post #31
danpalmer wrote: post #11

Businesses pulling out of the UK based on the Brexit process is bad for the UK, and I'm sure this was indeed mainly motivated by N26's need for a UK banking licence, which is a costly and difficult process to go through. However, it's worth noting that they are pretty small in the UK (~200k users). They're very successful in Germany where banking is a very slow, difficult, manually run industry (from what I've heard)…

N26 is also very successful in France, whose banking industry is--I can confirm--very much slow, difficult, and _very_ manually run. They can charge fees for accounts because their fees are still so much lower than the incumbents they're displacing. (And you can do stuff without having to talk to your bank counsellor, at your one specific branch, in person... how novel!) So I can see how their model wouldn't be very…

> at your one specific branch,

Italy is the same way and it is awful. We signed up for our bank account at one specific branch of a bank in Padova, Italy, and it's impossible to do much besides withdraw some cash at other branches. It's so dumb.

Re: N26 will be leaving the UK

#64

Post by rvz »

Zenst wrote: post #2

As somebody who lives in the UK (London area), I've never even heard of this company N26, let alone aware that they had UK operations. I do frequent the web, youtube, bus stops, tubes, trains and utterly exposed to all forms of marketing. So from my perspective, this does seem like marketing failure from the start - at least from my perspective. Though the only real new Bank in the UK to do well, traction wise would…

> As somebody who lives in the UK (London area), I've never even heard of this company N26, let alone aware that they had UK operations.

Funny and surprising you say this since I just saw a large N26 billboard in the London Tube Station at Angel Station; very unmissable as a Londoner using the tube these days.

Re: N26 will be leaving the UK

#65

Post by blibble »

avh02 wrote: post #59
danpalmer wrote: post #11

Businesses pulling out of the UK based on the Brexit process is bad for the UK, and I'm sure this was indeed mainly motivated by N26's need for a UK banking licence, which is a costly and difficult process to go through. However, it's worth noting that they are pretty small in the UK (~200k users). They're very successful in Germany where banking is a very slow, difficult, manually run industry (from what I've heard)…

I was with hsbc for a year in the uk, I'd definitely not call it "generally very good" (ridiculous app and login infrastructure), but I have a sample size of one.

hsbc's app and website are the worst of any bank I've used

nationwide and natwest have much better apps and websites

Re: N26 will be leaving the UK

#66

Post by tonyedgecombe »

mellosouls wrote: post #55
Karishma1234fff wrote: post #43

Earlier quoted context omitted.

Next step for UK is to reduce regulations compared to EU to make it easier for people to setup shop in UK compared to EU.

Depends on whether those regulations are socially useful or not. It's not a given that should be the next step.

We were repeatedly told that wouldn't be the case before the referendum. It's hard to see the point of Brexit otherwise though.

Re: N26 will be leaving the UK

#67

Post by s_dev »

danpalmer wrote: post #11

Businesses pulling out of the UK based on the Brexit process is bad for the UK, and I'm sure this was indeed mainly motivated by N26's need for a UK banking licence, which is a costly and difficult process to go through. However, it's worth noting that they are pretty small in the UK (~200k users). They're very successful in Germany where banking is a very slow, difficult, manually run industry (from what I've heard)…

>N26 on the other hand just didn't have a compelling offering. They charged for most/all of their accounts (explicit charges for accounts in the UK are uncommon), they lacked features, and their marketing was unremarkable compared to the competition.

I'm not buying any of this. I'd speculate that N26 was denied a banking licence in order to look after the "British challenger" banks who already operated in the EU with their EU licence. Having been denied the licence makes operating in the UK post Brexit impossible.

I use N26 -- it's free, great app and because it's German all savings up to €100k are guaranteed by German gov.

Re: N26 will be leaving the UK

#68

Post by goatinaboat »

iamben wrote: post #20
SirHound wrote: post #5

Earlier quoted context omitted.

Their adverts used to be all over the tube. That’s the only reason I know of them (most people in know IRL opting for Revolut or Monzo)

They also had a card with a transparent part - if you were eating with friends and someone had one everyone would be "ohhhh, what's that?"

Amex was issuing translucent cards in the UK in the 90s. By far the best looking card they ever did.

Re: N26 will be leaving the UK

#69

Post by WilliamEdward »

Karishma1234fff wrote: post #43
danpalmer wrote: post #11

Businesses pulling out of the UK based on the Brexit process is bad for the UK, and I'm sure this was indeed mainly motivated by N26's need for a UK banking licence, which is a costly and difficult process to go through. However, it's worth noting that they are pretty small in the UK (~200k users). They're very successful in Germany where banking is a very slow, difficult, manually run industry (from what I've heard)…

Next step for UK is to reduce regulations compared to EU to make it easier for people to setup shop in UK compared to EU.

There are some regulations i agree are unnecessary and slow things down far too much, but as soon as the UK starts cutting corners on safety they ought to deserve no business at all.

Re: N26 will be leaving the UK

#70

Post by gadjo95 »

Rumor is that they are also going to cancel their launch in Brazil. I think they are just re-focusing and trying to make money instead of burning it. Launching in a new market is always expensive.
Post reply on HN