N26 Hit With BaFin Monitor in Fresh Setback for Digital Lender

N26 was put under new business restrictions and given another monitor by German watchdog BaFin, as the digital lender struggles to meet supervisory demands despite spending hundreds of millions of euros on its controls.

A special audit last year, along with the review of the 2024 financial statements, found the lender violated supervisory requirements and didn’t have a proper business organization in place, BaFin said in a statement Monday. The lender was told to take steps to remedy the situation, with a special BaFin representative monitoring progress.

“There were serious deficiencies, particularly in risk and complaint management and in the ...