EXBERLINER Issue 153, October 2016

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REGULARS Start-ups By Sophie Atkinson N26’s growing pains Berlin’s fintech start-up N26 is now an honest-togoodness bank – ATM fees included. Is this really the future of banking? By Dyllan Furness Located on the top two floors of an old Stasi spy centre in Mitte, N26’s office space looks like a successful start-up starter pack: ergonomic chairs, bald and bearded product developers, a concrete wall graffitied by local artists. The custom-made carpeting is stitched with lines of code. As newbies in an industry as old as money, the banking app is on a mission improbable in Berlin and Europe at large, where big banks still roam like dinosaurs. Since its launch in January 2015, the start-up has progressed inch by inch, grown by tens of users at a time, and established itself as a digital alternative to antique institutions. But, up until two months ago, “Europe’s most modern bank” wasn’t even a bank. Number26 customers’ money was handled by Wirecard Bank, who held the banking license and eased the regulatory headache for the Berlin-based startup. Then, in July, with a customer base of over 200,000 and tens of millions of euros in investments, Number26 earned its banking license and started batting in the big leagues. To celebrate the event, it simplified its name (a reference to the number of dice in a Rubik’s Cube) to N26. The banking license came as a metamorphosis for the start-up. The Wirecard partnership had limited how quickly N26 could expand but gave it a sense of security, enabling it to develop its IT system, infrastructure, user interface, and – perhaps most importantly – its relationship with its customers. “Banks have suffered as brands of trust since the financial crisis,” co-founder and CEO Valentin Stalf said. “But today, with all the transparency on the web, you can create a brand and create trust quite quickly.” He pointed to his company’s 4.5-star App Store rating. N26 builds its relationships in many ways. For one, it takes just eight minutes to register for an account online (in English, if you want) – a godsend for newbie expats intimidated by the prospect of walking into a Sparkasse. The mobile app is seamless and intuitive, and N26’s hip, digital brand provides a stark contrast to the concrete aesthetic of traditional banks – never mind that Trump-supporting German-American billionaire Peter Thiel is one of its most prominent investors. But the start-up’s biggest draw, for Berliners at least, was its lack of fees. This changed in July, when N26 started charging for cash withdrawals in Germany – a feature that was previously free and unlimited from any Mastercard ATM. In its Fair Use policy, customers who have their salary paid directly into their N26 account, who deposit at least €1000 into the account per month or who are younger than 26 are given five free ATM withdrawals per month; all others are offered three free withdrawals. After that, users have to fork up €2 per transaction. With plenty of traditional German banks offering free cash withdrawal and banking apps of their own, N26 no longer looked quite as sexy. From a business perspective, the move was necessary. For over a year, N26 swallowed the costs of its customers’ ATM withdrawals, as high as €2 per transaction in Germany. But cash is king in this country, and the constant withdrawal charges weren’t viable. For many customers who’d grown accustomed to freebies, the change felt like betrayal. As a matter of consequence, the start-up encourages its customers to pay with their card as much as possible. “It’s much better for our society to not use cash in terms of overall costs and fairness,” Stalf said, citing the “black money” system commonly used in Berlin restaurants and cafés. “Anyone who isn’t a criminal would benefit from getting rid of cash… And there will be much more effort from the EU to stop issuing cash to control issues like taxation and terrorist financing. The less cash there is, the more transparency there is.” Going cashless is a pretty tall order in Berlin, though. To walk his company’s talk, N26’s CTO Christian Rebernik decided to abandon cash and pay only with his bank card in March. “I like the transparency and I like the security of cards,” he says, but the effort came with inconveniences. Rebernik’s neighbourhood bakery and Späti only accept cash, so he began to buy his bread and beer at the supermarket. He had to ask a friend to cover the tab at a cash-only bar. “I didn’t know what I was getting into,” he admits. And N26’s transparency may come at the cost of security. It’s not always obvious which online actions are secure and which may be compromised. When you sign up for an account online, for example, you’re directed to a third party webcam chat to verify ID by snapping a screenshot of their face and passport – a modern process that feels somewhat intrusive. N26 also retains data about spending habits and locations, which Rebernik insists is kept for the sole goal of giving customers insight into their own transaction trends. Only a week after it earned its banking license, the start-up began to stretch its wings, partnering with Frankfurt investment start-up Vaamo to launch N26 Invest. The intuitive tool lures users into the stock market by letting them choose from three portfolio profiles – “cautious, balanced, or bold” – and invest with just a few clicks. In the coming months, N26 plans to introduce savings and credit features as well. As the app increasingly begins to resemble established banks, only time will tell if Berliners stick around for N26’s vision of the future. ■ 52 EXBERLINER 153
COLUMN— The Gay Berliner Letter to gay Touris Walter Crasshole empties his fag bag and vents on the issues of the day. This month: queer tourist do’s and don’ts. Summer has officially drawn to a close and with it, the end of tourist hook-up season. In some ways, I’ll be sad. And in a lot of ways, I’m shitting rainbows of happiness at all the stuff I won’t have to put up with for at least the next six months. Like that message on Grindr from “English visitor” I got in early September: “I want you to breed me,” with an accompanying picture of his asshole. That’s often a not-so-subtle code for chemsex: fucking on drugs like crystal meth or GHB without a rubber. “I don’t do drugs,” I told him – which is a lie, but I knew where this was going. And subsequent messages proved me right. I’m not the judgmental type – if that’s your thing, that’s your thing. But the truth is, I rarely get that kind of message in Berlin unless it’s high tourist season. Seems that visitors get the wrong impression from reading too much of the “gay sex mecca” hype! So on that note, here’s an open letter to next summer’s batch of Touris. Dear gay tourist: Welcome to our city. You make it brighter and more diverse, and are the lifeblood of much of our economy. Many of you don’t remain tourists for very long and decide to stay, contributing to the colourful shimmery fabric that makes Berlin different. On a gayer note, you fill up my Grindr grid so it’s not just the same 12 guys at Kottbusser Tor every night. That said, you’re not a Berliner yet, and it wouldn’t kill you to keep a few things in mind... Germans, and by extension Berliners, are a punctual folk. Assimilate a little and instead of trying to make a sex date for between 6-9pm (or am!): commit, damn it. We’re not waiting on an IKEA desk delivery. I expect that you have a job back home, so why don’t you expect we have one here? I know it’s a common myth that we don’t work, but we do. So just because we were up until dawn Saturday night/ Sunday morning, don’t get butthurt that I can’t meet at 2am Wednesday night. Be upfront about leaving the next day. Berliners may be hard, and its gays nonchalant about dating, but this isn’t just a petting zoo. Letting me know that you have a plane to catch in 18 hours informs how we play the game. Our lives don’t revolve around Berghain. Do you really need to spend all your time in the world’s most famous darkroom? How about a walk down Engeldamm? Even if romance isn’t in the cards, we can always duck into a bush. And chemsex: I’ve seen the documentary. I’m for whatever substances you indulge in, but at the same time, I’ve no desire to see Berlin turn into London. Otherwise I’d live in London, being a banker during the week and slamming tina come Friday. Berlin’s got its own kind of hedonism. Luckily, it seems our two cities have different ideas about being “open-minded” (another strangely ironic code for chemsex). And I’ve got an open mind for you, kids. Come, play, socialise and fraternise, build new communities and enjoy our city. Just don’t be an asshole. Or send me any more snapshots of yours. ■ Learning german! goethe.de/berlin OCTOBER 2016 Sprache. Kultur. Deutschland.
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Berlin in English since 2002 153
Page 3 and 4: CONTENTS Exberliner 153 - October 2
Page 5 and 6: Berlin in English since 2002 TRUMP
Page 7 and 8: BEST OF BERLIN — October 2016 Tee
Page 9 and 10: AMERICAN BERLIN we recruit and enab
Page 11 and 12: AMERICAN BERLIN “I’M NOT DOING
Page 13 and 14: AMERICAN BERLIN Above: Ellen and Ri
Page 15 and 16: AMERICAN BERLIN Anna Winger is curr
Page 17 and 18: AMERICAN BERLIN LICHTENBERG BERLIN
Page 19 and 20: AMERICAN BERLIN Right: American Ber
Page 21 and 22: AMERICAN BERLIN Boogie”: three st
Page 23 and 24: AMERICAN BERLIN I remember him sitt
Page 25 and 26: REGULARS PAGE 23 GIRL Blue skies, b
Page 27 and 28: ADVERTORIAL — Shopping in Berlin
Page 29 and 30: WHAT’S ON — How Berlin Got The
Page 31 and 32: WHAT’S ON — Film Review Notes O
Page 33 and 34: WHAT’S ON — Film Reviews his mo
Page 35 and 36: WHAT’S ON — Music Preview Bring
Page 37 and 38: WHAT’S ON — Music terrible way
Page 39 and 40: WHAT’S ON — Art haus, will open
Page 41 and 42: WHAT’S ON — Art Through Oct 22
Page 43 and 44: WHAT’S ON — Stage Preview AT MA
Page 45 and 46: ADVERTISING — The Language School
Page 47 and 48: WHAT’S ON Human Rights Watch (see
Page 49 and 50: ADVERTORIAL — The Berlin Guide NO
Page 51 and 52: ADVERTORIAL — The Berlin Guide fa
Page 53: REGULARS On the other hand, the int
Page 57 and 58: REGULARS Review Dandy Diner: Fast v
Page 59 and 60: NOW IN BERLIN COLUMN — Ask Hans-T
Page 61 and 62: REGULARS High art for the little pe
Page 63 and 64: 14|10 A Night for LILI BOULANGER LI
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EXBERLINER Issue 153, October 2016

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