Should Joe Public be concerned about these fantasy games that are played
with 'valuations'? $3.5 bio for an operation that has a pitiful balance
sheet of 150 Mio as per last data I could find. Even if double that it
is still ridiculous. And what is the business 'model'? Offering an app
and collect deposits? But that is the easy part in banking, if all they
then can do is lending it to the wholesale market, mainly other banks,
where is the added value? and how much margin is in this 'model'? And
the investors that put money into this - and similar start ups - whose
money do they look after? It is not their own money but the money that
investors - the Joe Public again - have entrusted to them. So any losses
are not suffered by the promoters/insiders. The media should be
critical and not write adulating reports. And the regulators? Better not
say too much, bad for my blood pressure.
On line Bank N26 valued at $3.6 Bio