German mobile bank N26 has touched 250,000 customers mark since it went live to all consumers in the US in August last year, CNBC has reported.
Customers of the digital lender, which is backed by venture capitalist Peter Thiel, are said to be shifting funds from banking majors like Chase Bank and Citibank.
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In an interview to CNBC, N26 US CEO Nicolas Kopp said: “We track where the money comes from when people fund their accounts, and I definitely see some of these big-name banks crop up quite frequently.
“So far, that’s where I see a lot of customer growth for N26.”
Known for its smooth app design and clear debit card, N26 allows customers to sign up for an account within a few minutes.
The mobile bank, which was formed seven years ago, has expanded throughout Europe since then.
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By GlobalDataThe German lender announced its plans to foray into US market in 2017 followed by a limited launch in July this year.
Since the start-up doesn’t own a federal bank license, it partnered with Axos Bank. It is claimed that the German digital lender N26 has a global customer base of 5 million.
On considerations to apply for a US bank license, Kopp said: “We haven’t decided yet.”
The European start-up entered into a deal with interbank network Allpoint to expand free-to-use machines.
It does not offer credit cards or loans in the US. It generates the bulk of its revenues from transaction fees paid by the merchant bank when one of its debit cards is used.
Some of its features like getting paid salaries two days earlier and shared accounts, has received positive feedback from users, says Kopp.
Last year the digital bank raised $470m in a funding round led by Insight Partners, Thiel’s Valar Ventures and Chinese tech firm Tencent.
