Berlin challenger bank N26 has launched in the UK, taking the fight to Monzo and Revolut in the already crowded financial technology market.

The German mobile bank says it has a 50,000-strong waiting list for its accounts. The initial launch will be for friends and family of current staff, followed by those on its waiting list. The bank will make a full public debut in November.

The banking app gives users live updates of their spending and links to a clear payments card. The start-up has received funding from major investors including Chinese giant Tencent and insurance group Allianz.

In March, N26 raised $160m as it considered plans to launch in the UK and the US. The online bank's rapid expansion to 1.5 million customers makes it a potential challenge to the UK's Monzo, which last year launched its own current accounts.

Monzo confirmed last month it had secured its one millionth current account customer after switching its early users of its pre-paid cards.

Under chief executive and co-founder Valentin Stalf, N26 has said it is targeting further international growth. It aims to launch in the US in early 2019 partnering with a domestic bank.

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Meanwhile, rival overseas firms have launched their own banking apps in an effort to gain younger and tech savvy users. Investment bank Goldman Sachs launched its Marcus savings account in the UK last month.

N26 head of international markets Alex Weber said: "The UK is one of the most advanced markets for online banking, but with 85pc of users with big banks."

He added the competitive market among UK fintechs was "helpful for driving adoption".

German fintech start-ups have raised €339m so far this year from venture capital firms, according to data from analysts Pitchbook, with 29 deals confirmed so far in 2018.

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