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Berlin-based mobile banking startup Number26 just raised a $40M Series B led by Horizons Ventures. With 200,000 clients, Number26 wants to become a major consumer-facing bank in Europe providing all the services you’d expect from your bank, with a mobile app that is easier to use and personalize. In addition, Number26 enables users to withdraw or pay anywhere across the globe, without foreign transaction or exchange fees.
The startup has partnered with Wirecard for the back end. Wirecard has a banking license and actually manages your money. Number26 sits on top of Wirecard and handles all the consumer-facing features. Technically, Number26 isn’t a bank per se — or not yet, at least. Even though Number26 has outsourced the money-counting part, it doesn’t mean that the company doesn’t have growing pains. Number26 is in charge of “know your customer” processes, and the company has also recently noticed that some customers were abusing ATM withdrawals. That’s why Number26 recently closed down around 400 accounts. There will be more missteps along the way, but you should be able to blindly trust your bank. So Number26 has to be careful on this front.
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