This Berlin startup thinks it can create a fintech ecosystem that will replace banks
But according to Number 26 CEO Valentin Stalf, this isn't going to be the way of things for very long. What comes next is what should really scare banks.
I sat down with him just as the Berlin-based company launched an English-language version of their mobile banking app, which has been running in Germany and Austria since January.
Number 26 already has 25,000 users, primarily from word of mouth, Stalf says, without actually doing any marketing.
You can sign up for an account in just four minutes, online, without sending in any documents. At the end of the sign-up process you get a video call to verify your identity, show Number 26 your passport, and answer a few questions.
But while the digital-only bank doesn't have any branches, its services are still running on top of traditional banking systems. Number 26 accounts are attached to a debit card that works at ATMs and shops that take MasterCard. Number 26 also doesn't have a banking licence itself, so the funds held in its accounts are actually looked after by German bank Wirecard.
Number 26 also has a lot of financial tools, which can tell you where you end up spending your money, be it clothing stores or restaurants. The app will also recommend what is best for you to do with your money. If you regularly earn more than you spend, the app will recommend that you put your extra capital into a savings account, Stalf explained.
Transactions and payments show up on the account in real time. You can also block the connected card by pushing a button in the app. You can unblock it from within the app too.
Right now the company is just working to improve its salary account, but plans to add savings and overdraft options at a later date, Stalf said.
Stalf will consider British company Atom Bank to be a direct competitor when its product launches, while Moven and Simple offer similar services in the US.