Analyzing N26's Great Britain exit using text mining

This report uses text mining to analyze 1700 news articles about N26 and Revolut to understand N26's Great Britain exit.

This report uses text mining to analyze 1700 news articles about N26 and Revolut to understand N26’s Great Britain exit. It uses a network graph to show the relationship between an article and the topics that the article covers.

N26, the German smartphone-bank entered Great Britain in 2018. In February of 2020, they exited Great Britain. Officially they exited Great Britain because of the regulatory issues regarding a new banking licensee.

Some analysts, among them Heinz-Roger Dohms believe that Brexit was not the only reason for N26’s exit. Heinz-Roger Dohms assumes that besides regulatory challenges, another reason for N26s exit was their weak market position.

To examine N26’s Great Britain exit, this report analysis 1700 news articles (published in German and English) about N26 and Revolut (one of the major competitors). It uses a network graph to show the relationship between an article and the topics that the article covers.

The findings

  • N26 was not very pro-active about Brexit
  • Revolut was very pro-active about Brexit
  • N26 was not relevant in Great Britain during their stay there (based on analyzed news)
  • N26’s product offering was not competitive compared to competitors like Revolut

During their period in Great Britain N26 did not produce newsworthy events

The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles (Period: Between N26’s entry into Great Britain and exit)

Zooming in into the topics linked directly to Great Britain shows the monotonous news situation even clearer.

The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles (Period: Between N26’s entry into Great Britain and exit)

In contrast, there were not only more news about Revolut but also was the news landscape more diversified

The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles (Period: Between N26’s entry into Great Britain and exit)

Zooming into Revolut’s news reveals several focus topics. Among them:

  • Cryptocurrency and bitcoin
  • Banking license
  • Republic of Ireland
The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles (Period: Between N26’s entry into Great Britain and exit)

N26 did not receive significant news coverage because their product offering was sparse compared to competitors like Revolut

The graph shows products extracted from N26’s and Revolut’s websites. Periods: Revolut: 08.06.2020, N26: shortly before left Great Britain

The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles

Whereas they share some products like Insurance and transaction account, Revolut offers far more than N26. Among them “Cryptocurrency trading,” a very popular topic - see next graph. (Period: Between N26’s entry into Great Britain and exit).

News regarding Cryptocurrency/Bitcoin and Revolut is a hot topic.

The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles (Period: Between N26’s entry into Great Britain and exit)

Regarding Brexit, N26 was not very pro-active

The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles (Period: Before Brexit [from 2017])

The only relevant topic was Mastercard.

In contrast, Revolut was far more concerned about Brexit than N26 was

The pink icons are topics and the green icons are news articles
The pink icons are topics and the green icons are news articles (Period: Before Brexit [from 2017])

Focus topics were Europe and Luxembourg.

Both topics deal with Revolut’s activities regarding a banking licensee in Europe/Luxembourg (Revolut indeed shifted their focus to Ireland after Brexit).


This analysis was produced with Researchly. Try it for free here.