German neobank N26 finally rolls out in Brazil

Image courtesy of N26

A neobank with nearly 9 million customers across 24 national markets, Germany’s N26 is finally rolling out operations in Brazil.

It may be a little strange to use such a term to describe the fintech’s latest move, but it is precisely what is happening since the Berlin-based brand first announced it was studying the local market and asking the Central Bank for authorization as a Direct Credit Society (SCD) between the end of 2019 and the beginning of 2020.

The original idea was to launch by mid-2020, but even before the pandemic hit, chief executive Eduardo Prota said they had realized that they needed a different strategy in order to compete with local players. This strategy was only revealed in 2021, when the fintech started positioning itself as a “fincare company,” that is, a bank dedicated to helping Brazilians take care of their financial life.

Indeed, only 35 percent of Brazilians are considered financially literate, per S&P Global’s financial literacy index.

That blind spot also affects younger generations. According to the latest PISA assessment, some 44 percent of students in Brazil failed to reach the...

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.