finsmart-news_admin 
Valentin Stalf, co-founder of German digital bank N26, will step down as chief executive and move to the supervisory board, as the fintech’s leadership faces pressure from investors and regulators.
The move comes weeks after Germany’s financial watchdog BaFin raised fresh concerns about N26, warning of potential sanctions. The scrutiny has intensified long-running tensions between the company’s investors and its founders, Stalf and Max Tayenthal.
Stalf and Tayenthal, who jointly hold about 20% of N26, are negotiating a deal with backers that would see them give up special voting rights that allow them to veto certain decisions. In return, investors would take a cut on guaranteed returns tied to N26’s €7.7 billion valuation from its 2021 funding round. That deal locked in a 25% annualised rate of return for investors from the time of investment.
Tayenthal, currently co-CEO and head of N26’s banking arm, will remain in his role for now, the company said. But a person familiar with the matter told Reuters he is expected to exit operational duties later. Chair Marcus Mosen has been lined up as interim co-CEO, though he declined to comment.
Stalf said he plans to leave after a six-month transition, adding he had been considering the move “for some time.” He will join the supervisory board, which oversees top executive appointments, CEO pay, and strategy, under Germany’s two-tier system.
The proposed arrangement would allow the co-founders to nominate two supervisory board members, potentially including themselves, subject to regulatory approval. But current board members have raised concerns that allowing a sitting CEO to join immediately could weaken the board’s independence.
Stalf told reporters he expects two more executives to be added to the management board over the next year. He also said he plans to dedicate more time to expanding his family office, which he has been building in recent years.
N26, Germany’s most valuable fintech, has struggled with regulatory issues ranging from anti-money laundering controls to governance. The outcome of talks between founders and investors will determine how much influence Stalf and Tayenthal retain as the bank adapts to tighter oversight.
