N26 to close operations in Brazil

German digital bank N26 is pulling out of Brazil as it shifts its focus back to its core European markets.

The bank had been testing out operations in Brazil, with early versions tested with select customers from November 2021 onwards, but it had not launched to the general public.

All accounts in Brazil will close within the next two months as it backtracks on an attempt to take on South American rival, Nubank.

In its note to customers on its website, N26 said it decided to test out the Brazilian market by taking care of money with “a little less ‘fin’ and a little more ‘care’”.

It clarified that N26 will continue to work normally in its 24 other markets, where it has amassed more than eight million customers and processes more than €100bn annually.

The lender previously pulled out of the UK and US, in 2020 and 2021 respectively, and exiting South America now leaves it solely focused on continental Europe.