N26 Faces Leadership Overhaul Amid Regulator Pressure

Investors in Germany’s most valuable FinTech, N26, are pushing to remove its co-founders from executive roles and install the bank’s supervisory board chair as interim co-chief executive, the Financial Times reported, citing people familiar with the matter.

According to the FT, under a proposed deal, co-CEOs Valentin Stalf and Max Tayenthal would step down by year-end, Stalf by Sept. 1, Tayenthal by Dec. 31, and relinquish special voting rights in exchange for some investors accepting reduced returns. Marcus Mosen, the current supervisory board chair, would take the interim leadership post. The shake-up follows fresh warnings from BaFin, Germany’s financial regulator, which last month threatened new sanctions over risk management shortcomings barely a year after lifting restrictions tied to earlier compliance failures. The move underscores growing tensions between N26’s leadership and backers over governance, regulatory scrutiny and the bank’s ability to scale responsibly.

BaFin’s latest special audit found “weaknesses in the internal control systems, processes and the overall organization” of N26, according to the bank’s annual report. The regulator proposed issuing formal warnings to two board members and installing a new special monitor. The bank says it has launched a “comprehensive improvement plan” to address deficiencies by March 2026.

“All aspects of the ongoing exchange between N26 and BaFin are confidential,” N26 told the Financial Times, warning against “speculation about the content of such discussions.”

The leadership dispute comes as N26’s capital-raising efforts stall. A funding round launched earlier this year is on hold, and plans to buy out investors from its 2021 €7.7 billion valuation round collapsed. Those investors, including Third Point Ventures and Coatue Management, had been guaranteed a 25% annualized return. Under the new arrangement, Stalf and Tayenthal could take two supervisory board seats, possibly their own, subject to BaFin approval, though current board members oppose an immediate move from management to oversight roles, citing independence concerns. A deal could be finalized within days, though no shareholder vote has been scheduled. BaFin, Third Point and Coatue declined to comment.