German digital bank N26 has announced that it will be pulling out of the Brazilian market as it redirects its attention towards its core European markets. The bank had been conducting tests in Brazil since November 2021 but had not officially launched to the general public.
Account Closure and Shift in Strategy
In the next two months, all N26 accounts in Brazil will be closed, signaling the bank’s decision to backtrack on its attempt to compete with South American rival, Nubank. N26 cited a desire to focus on its core European markets and prioritize its operations in those regions.
N26’s Statement to Customers
In a statement to its customers on its website, N26 explained that the bank had chosen to explore the Brazilian market with a more customer-centric approach. It emphasized the importance of providing financial services with a touch of care while testing the waters in Brazil.
Continued Operations in Europe
N26 clarified that while it withdraws from Brazil, it will continue to operate normally in its other 24 markets. With over eight million customers and processing more than €100bn annually, N26 remains focused on its success in continental Europe.
Past Market Withdrawals
This recent exit from the Brazilian market follows N26’s previous decisions to withdraw from the United Kingdom in 2020 and the United States in 2021. With its exit from South America, N26 now concentrates solely on serving its customer base in continental Europe.