Interview with Sam Davidson, Head of Legal, Compliance and Risk — US at N26
We sat down with Sam Davidson, N26’s new Head of Legal, Compliance and Risk for the US, to discuss how he’s helping the firm navigate the rules of the road for the US banking industry. He also shares why he decided to join N26 and what makes it a special place to work.
Can you introduce yourself and tell us what you do at N26?
I’m Sam Davidson and I’m the Head of Legal, Compliance and Risk — US at N26 .
What made you want to pursue law, and eventually the banking/ financial services industry?
In terms of my desire to pursue law, I’ve always had an intellectual curiosity, particularly toward any form of analysis. Law seemed like a natural fit that allowed me to explore challenging topics from an analytical approach.
With respect to banking, the industry kind of found me. My philosophy is to allow opportunity to dictate the direction of my career, and there were many intriguing opportunities in the financial services area when I graduated law school.
What do you find most interesting about the current state of banking in the US?
There are two trends in the retail banking industry in recent years that I think are interesting and also beneficial for the customer. On the one hand, we’ve seen the unbundling of financial products and services offered by financial institutions. What I mean by that is that products are becoming simpler and more accessible for people — in part because there are also more choices in which providers to use.
On the other hand, there’s also been a shift among consumers toward using mobile-based services to handle their day-to-day needs. This is true not only in banking but in all areas of people’s lives — communication, transportation, and so on.
In banking this means that a person’s smartphone now functions as the bank branch. You can take it wherever you go, and it’s more efficient for both the institution and the consumer.
What made you want to join N26? What excites you about the company?
The attitude within the company — free thinking, constant generation of new ideas, and thinking outside the box. We quite literally challenge legacy banking standards with respect to every aspect of the business.
Further, working for an institution that has already achieved such a high level of success in a short period of time is also exciting. Being able to apply that success to an entirely new geographic region is attractive. One the one hand, we already have a proven track record in Europe, but we’re also tasked with bringing something fresh and relevant to US customers.
Your title at N26 is “Head of Legal, Compliance, and Risk — US.” What do all these terms mean?
The common denominator is risk management. Put simply, I advise N26 on US legal matters related to all aspects of launching the app, ranging from partner negotiations to product development. The other part of my role is about making sure we maintain an internal risk framework that ensures compliance with various US laws and regulations while still enabling innovation.
What specific criteria are banks in the US required to follow/comply with, and how are you leading N26’s approach on this?
That’s a loaded question! There are various federal and state laws and regulations that govern every aspect of the industry — from marketing to onboarding, to servicing. There are thousands of rules that dictate what can and can’t be done. For example, every customer onboarded through the N26 platform must be verified through various screenings before an account is opened. This keeps the company safe and helps maintains the overall integrity of the banking system.
Ultimately, these rules protect the consumer. The regulations make certain that the terms of each product are made abundantly clear — there are never any surprises.
Given that in Europe N26 is a bank built from scratch, what advantages do you think the firm has in the US in terms of meeting the various needs and demands of today’s consumers?
For starters, the founders aren’t bankers! They see things through an unadulterated lens and strictly from a consumer perspective, which allows us to build the best, most consumer-oriented product. The question is, “how do we best serve the customer?” rather than “how does my prior experience at this bank dictate the steps we need to follow?”
What do you think separates N26 from other fintech companies?
N26 offers a traditionally unfriendly service through an extraordinarily friendly medium. Our clean and user-friendly products are a direct result of our amazing teams. We have more than 100 engineers and designers working hard every day on innovative features, constantly pushing to improve our product.
The global scale also makes us stand out, the fact that our products are available in 17 countries in Europe — with the US and other markets coming soon. In such a short period of time, we’ve greatly expanded the scope of our product and are quickly establishing ourselves as a global financial institution.
I understand that N26 CEO and Co-founder Valentin Stalf visited the NYC office soon after you joined. What was that experience like and what insight did he share with you?
The one thing that stood out is that he’s very forward-thinking and optimistic. It’s a necessary perspective to have in order to achieve the type of success we’ve accomplished so far. He’s always looking into the future and coming up with new ideas, and he’s never satisfied with what exists at the present moment. The approach is to build and improve on what we currently offer, which is a super important quality to have in an ever-changing, fast-paced industry. It’s what defines our company: we challenge our own product as well as the greater banking industry. Valentin instills that mentality from the top down.
Describe N26 in 3 words.
Fast, agile, smart.
What’s your favorite thing, and least favorite thing, about NYC?
I’ve lived here for 10 years and love it. It’s fast-paced, trendy and the city is second to none. If I had to point out my favorite thing about NYC, it’s the food.
You can also get pretty much anything you want in New York. It’s the ultimate melting pot, no matter what your culture is. It’s a global hub for pretty much any industry you can think of — big banks, law firms, tech companies, and all else in between.
What’s the most fun thing about working at N26?
Defying the status quo — using creativity, coming up with solutions, and from my standpoint, figuring out how to do things that other people or companies can’t. Here at N26 in the US, we’re building a team and products from the ground up. Being one of the early employees in the US is a special opportunity to develop the strategy and direction for N26 beyond Europe. We are disrupting an industry, building an amazing product, and having a ton of fun while doing it.
Interested in joining one of our teams as we grow?
If you’d like to join us on the journey of building the mobile bank the world loves to use have a look at some of the roles we’re looking for here.
