N26 founder potentially planning an exit in the near future
In a significant shift for N26, one of Europe's most valuable fintechs based in Berlin, co-founders and co-CEOs Valentin Stalf and Max Tayenthal are being removed from their operational roles. This decision comes in response to repeated regulatory failings, particularly around risk management and compliance, as identified by Germany's financial watchdog BaFin.
Timeline of Events
Valentin Stalf is set to step down by September 1, 2025, while Max Tayenthal is expected to leave by December 31, 2025. Both founders will also relinquish their special voting rights as part of the deal negotiated with investors.
Implications
This leadership change is aimed at restoring investor confidence and addressing regulatory scrutiny. The changes come after BaFin imposed a customer onboarding cap and a €9.2 million fine for past money laundering control deficiencies. These measures have limited growth and shaken investor confidence.
N26's funding round, launched earlier in 2025, was put on hold due to these issues. The leadership change represents a shift to a more compliance-focused management approach, crucial for operating under stringent financial regulations while sustaining growth in digital banking.
Potential Successors and Interim Management
Marcus W. Mosen, the supervisory board chair since 2024 with prior senior roles in payment and financial services firms, will serve as interim co-CEO. Any permanent successor will require regulatory approval, indicating ongoing oversight and cautious transition planning.
Additional Context
Valentin Stalf has moved to the supervisory board, according to N26’s own statements, although there is some dispute about the level of pressure behind the founders’ exit. Despite the leadership turmoil, N26 is planning to expand its product offerings, including accounts for children and investment features, highlighting efforts to innovate alongside compliance remediation.
Background
N26 was founded by Stalf and Tayenthal in 2013 and has since become one of Europe's most valuable fintechs. The rapid growth of N26 was supported by numerous investors, including prominent international VC's. However, N26 has faced criticism from BaFin for inadequate control systems and serious shortcomings in combating money laundering and financial crime.
In April 2024, BaFin imposed a record fine of 9.2 million euros on N26 for delayed reports from 2022 - the highest fine against a German neobank to date. Despite the lifting of the growth restriction, renewed trouble arose at N26 at the beginning of 2025. Some investors reportedly doubt whether N26 will become profitable.
A special commissioner was appointed by BaFin to oversee N26 in 2021, limiting the bank to taking on a maximum of 50,000 new customers per month. The problem with inadequate control systems and serious shortcomings in combating money laundering and financial crime, previously mentioned in relation to N26, was not addressed in the new audit.
The special audit by BaFin that found deficits was conducted in 2025. Stalf and Tayenthal, co-founders of N26, are facing pressure to leave the operational business due to issues with the financial supervisory authority BaFin and disappointing business performance.
[1] Financial Times, "N26 co-founders to exit as bank faces regulatory pressure," May 2025. [2] Reuters, "N26 co-founders to step down amidst regulatory scrutiny," May 2025. [3] Bloomberg, "N26 founders to leave operational roles due to regulatory failings," May 2025. [4] The Wall Street Journal, "N26 faces investor pressure over regulatory failings," May 2025. [5] CNBC, "N26 co-founders to step down amidst regulatory and financial challenges," May 2025.
- The departure of Valentin Stalf and Max Tayenthal from their operational roles at N26, one of Europe's leading fintech companies, signals a strategic shift towards a compliance-focused approach in the industry, particularly within the digital banking sector.
- In the aftermath of regulatory failings and a hefty fine, N26, a fintech giant in finance, is exploring expansion into new business areas such as children's accounts and investment features, aiming to balance innovation with stringent compliance requirements as they navigate the financial landscape.
