N26 to cease operations in Brazil within the next two months
German challenger bank N26 is exiting Brazil after two years in the South American market as it shifts the geographical focus of its strategy.
N26 Brazil to cease operations within two months
In a notice posted to LinkedIn, N26 Brazil – which is headed by CEO Eduardo Del Guerra Prota – says that the decision “comes on the heels of changes in N26’s global strategy”, with the bank instead looking to focus on its key markets in Europe.
N26 first launched in Brazil in 2021 after it secured a Sociedade de Crédito Direto (SCD) licence from Banco Central do Brasil.
The SDC licence, which recognises N26 Brazil as a direct credit company, enables it to grant loans, buy and sell receivables, and fund loans with credit issued by the National Economic and Social Development Bank (BNDES).
That November, it began testing early versions of its Brazilian product with a limited number of customers selected from a waiting list. However, two years on, and this product still has yet to reach the hands of the general public.
These tests also experienced a one-year delay as a result of what N26 said was a need to focus its efforts within core markets, namely Germany, France, Spain and Italy.
In July this year, N26 Brazil announced that it would cut 15% of its workforce, and despite telling FinTech Futures at the time that it was “exploring multiple routes to strengthen their future position in the Brazilian market”, the notice posted this week confirms that the bank will cease its operations in Brazil “within the next two months”.
