In general, German banks are a more complicated situation in terms of profitability than their counterparts in other EU countries due to very low interest rates (CNBC, 2019). One of the main problems is the proliferation of small savings banks, there are about 400 savings banks in the country known as Sparkassen, which represent 15 percent of the total assets of the banking sector (Internationalbanker, 2019), these boxes savings present a personalized service, neighborhood, which is not free of cost.
N26 is a German bank founded in 2016, which operates in most of the euro zone countries, Switzerland and the USA. The entity is classified as a neobank, 100% digital and accessible to customers only in mobile applications and website. In 2019 Forbes announces that N26 the entity became the online bank with the highest market capitalization in Europe, ahead of Revolt.