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Former Central Banker Takes N26 Helm Amid Founder Exodus

Pat Crawley

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former-central-banker-takes-n26-helm-amid-founder-exodus — Former Central Banker Takes N26 Helm Amid Founder Exodus

2025-08-28T08:38:14.807+02:00

Thursday, 28/08/2025 | 06:38 GMT by Damian Chmiel

Andreas Dombret’s appointment signals the end to investor-founder standoff at German fintech.
In the meantime, founder Valentin Stalf steps down as CEO amid investor pressure.

German neobank N26 is bringing in former Bundesbank executive Andreas Dombret to chair its supervisory board, capping months of turmoil between investors and the company’s founding team.

The leadership overhaul represents the latest attempt to stabilize Germany’s most valuable fintech after regulatory troubles and internal disputes threatened to derail the digital bank’s growth trajectory.

German Fintech N26 Gets New Boss Amid Regulatory Storm

Dombret, who served on the Bundesbank’s executive board from 2010 to 2018, will be nominated by both founders and investors at an upcoming extraordinary general meeting. His banking supervision background could help N26 navigate ongoing regulatory scrutiny from German watchdog BaFin.

The appointment comes alongside other significant changes. Current supervisory board chair Marcus Mosen will become co-CEO, working alongside remaining founder Maximilian Tayenthal. Co-founder Valentin Stalf stepped down from his CEO role last week and will join the supervisory board after a cooling-off period.

Colin Bryant of Coatue

“Marcus Mosen has known the company since its founding and has the full trust of the investors,” said Colin Bryant of Coatue, one of N26’s backers, quoted by Financial Times. “We are confident that as CEO he will be integral in helping to position N26 for long-term growth and lasting success.”

Banking Veteran Brings Deep Experience

Dombret brings decades of financial services expertise spanning both private sector and regulatory roles. His career includes senior positions at major Wall Street firms, including a decade as managing director at J.P. Morgan and partnerships at Rothschild & Co.

Before joining the Bundesbank, he served as Vice Chairman Europe at Bank of America from 2006 to 2009, navigating the financial crisis period. His regulatory experience extends beyond Germany, he was a founding member of the European Central Bank’s Supervisory Board and served on the Board of Directors at the Bank for International Settlements.

Since leaving the Bundesbank in 2018, Dombret has maintained an active advisory portfolio. He currently serves as Global Senior Advisor at Oliver Wyman and holds advisory roles at major financial institutions including Banco Santander and Sumitomo Mitsui Banking Corporation.

His technology sector experience includes serving as Global Policy Advisor for Financial Services at Amazon Web Services since 2020. This fintech exposure could prove valuable as N26 works to balance innovation with regulatory compliance .

Regulatory Pressures Mount

The reshuffle follows fresh regulatory concerns from BaFin, which recently flagged new issues and threatened additional sanctions. The regulator had previously imposed a customer cap and special monitor over weak money laundering controls and risk management problems.

A recent BaFin audit found “weaknesses in the internal control systems, processes and overall organization,” according to N26’s annual report. The watchdog plans to issue formal warnings to two management board members and install another special monitor.

These latest troubles compound N26’s regulatory headaches. BaFin only lifted a customer onboarding cap last year that had severely limited growth since 2021. The restriction, originally set at 50,000 new customers monthly, came with a €9.2 million fine for lax anti-money laundering controls.

Investor-Founder Tensions Boil Over

Behind the scenes, months of friction between N26’s investors and its founding team had reached a breaking point. Stalf and Tayenthal together own about 20% of the company’s equity and had retained special veto rights over major decisions.

Investors pushed to remove these founder privileges, particularly after the latest regulatory troubles. The founders have been negotiating to give up their veto powers in exchange for reducing the guaranteed returns promised to investors in N26’s 2021 fundraising round.

That funding valued N26 at €7.7 billion and guaranteed new investors a 25% annual return. Under the deal being discussed, these guaranteed returns would be cut as part of the compromise.

Tayenthal is also expected to step down from his management role by year-end, according to people familiar with the negotiations.

New Leadership Takes Shape

Dombret could assume his new position as early as October, pending routine BaFin approval. His extensive experience overseeing banking supervision and financial stability at the Bundesbank makes regulatory approval likely.

The timing reflects urgency around resolving the company’s governance issues. Invitations for the extraordinary general meeting to formalize Dombret’s nomination are expected next week.

Founded in 2013 as an online-only bank, N26 has struggled to balance rapid growth with regulatory compliance. The company’s attempts to expand internationally while maintaining German regulatory approval have created ongoing tensions.