N26 will be leaving the UK • Hacker News Board

Re: N26 will be leaving the UK

#71

Post by danpalmer » Tue, Feb 11, 2020, 6:27 PM UTC

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.

Yeah same. HSBC have struggled to improve their tech but they are improving now. They released a completely new app and got rid of that terrible login flow last year and apparently it's much better.

You can still send a payment from HSBC, for free, instantly, to any other UK bank account. You can also just about do most things in their online banking. This more than can be said for some other parts of Europe.

Re: N26 will be leaving the UK

#72

Post by ahmedalsudani » Tue, Feb 11, 2020, 6:27 PM UTC

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.

The further the UK diverges from EU rules, the harder it will be to trade across the two zones. That’s going to cause ambitious companies to leave for the massive opportunity in the EU, not to set up shop in the UK.

Re: N26 will be leaving the UK

#73

Post by Zenst » Tue, Feb 11, 2020, 6:27 PM UTC

jen20 wrote: post #21

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…

> Though the only real new Bank in the UK to do well, traction wise would be Metro Bank This probably indicates that you are not in fact as well exposed to bank marketing as you suspect - it's hard to argue that Monzo and Revolut have not done well.

I'm aware of those two at least, but from people I know, not one had them and basing around that aspect of traction - sure that may well not represent the market, but at least I'm aware of them, unlike this N26.

Re: N26 will be leaving the UK

#74

Post by als0 » Tue, Feb 11, 2020, 6:27 PM UTC

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.

It was easier already. From what I hear setting up shop in the UK is more straightforward than doing the same thing in France.

Re: N26 will be leaving the UK

#75

Post by Hamuko » Tue, Feb 11, 2020, 6:28 PM UTC

s_dev wrote: post #67

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…

>and because it's German all savings up to €100k are guaranteed by German gov.

Same applies to all banks in the EU.

Re: N26 will be leaving the UK

#76

Post by Nursie » Tue, Feb 11, 2020, 6:28 PM UTC

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)…

Anecdote time - the only person I know who had an account (I work in London fintech at the moment) never used it and only opened it for the fancy translucent card. He seems to have accounts with all the 'challenger' banks.

Re: N26 will be leaving the UK

#77

Post by danpalmer » Tue, Feb 11, 2020, 6:28 PM UTC

s_dev wrote: post #67

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…

The process for getting a banking licence in the UK is actually pretty accessible. I highly doubt they were denied a banking licence, there are other non-UK companies with UK banking licences.

Re: N26 will be leaving the UK

#78

Post by threeseed » Tue, Feb 11, 2020, 6:28 PM UTC

butler14 wrote: post #29

Out-competed by Monzo/Starling/Revolut and co. and blaming Brexit. Not the first to use that excuse, and certainly not the last.

That's one interpretation.

Another is that the imposed costs of Brexit e.g. compliance, privacy, data sovereignty especially since we are heading down the no-deal path make it too costly to compete.

And fully agree that it won't be the last business to find it uneconomical to compete in the UK due to Brexit.

Re: N26 will be leaving the UK

#79

Post by matthewmacleod » Tue, Feb 11, 2020, 6:29 PM UTC

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.

I’d rather have regulated banks please.

Re: N26 will be leaving the UK

#80

Post by zorbash » Tue, Feb 11, 2020, 6:29 PM UTC

treebornfrog wrote: post #8

Sad news, I've been using them for over a year, their card design is the most beautiful I've seen yet in the UK (1). (1) https://miro.medium.com/max/4000/1*XScUHKRVuzfiRKttAfJ64w.pn...

Indeed, their cards are neat. I no longer use it as both Starling and Revolut have better UX and charges. Some day hopefully startup banks might offer customisation options when you order your card.