Neobanks have increasingly been establishing themselves in Europe as their new central hub. It is anticipated that the European Neobanking sector will experience a growth rate of 19.53% between 2023 and 2027, culminating in a market size of US$4.66tn by 2027. According to data from May 2023, there are ninety eight online banks in Europe with N26, Wise, Revolut, Bunq and Monzo being some of the most popular ones.
How did neobanks become so popular in Europe?
Especially after the pandemic, cash was outdated for shopping in most of the fintech capitals such as Amsterdam, London, and Berlin, where contactless and mobile payments were gaining popularity. The increasing convenience in daily transactions created a huge demand for online-only services for other banking operations as well.
Because of the neobanks’ great low fees, benefits and 24/7 service capabilities, people started to leave the traditional banks to open accounts in online banks instead. Although initially gaining customers’ trust was an issue, people are now becoming less averse to technology. As a result, most people trust challenger digital banks as much as, if not more than, traditional banks.
Which are the 5 best neobanks in Europe?
The high amount of alternatives brings competition and most importantly, development with itself. In this article, we would like to share with you the benefits and missions of these neobanks. Additionally, we will curate some of the best digital-only banks with high Trustpilot scores from a diverse range of options.
N26 is a German neobank headquartered in Berlin. The online bank was founded in 2013. As of today, it has more than seven million customers in twenty five markets. The free account that you can open with N26 comes with a free MasterCard debit card and gives you the opportunity of three fee-free withdrawals per month within the EU. Also the core banking features of N26 such as virtual debit card, deposit protection and fee-free international spending etc. are all available on the free account.
Wise is known for providing affordable international transfers and is classified as a money transfer service rather than an online bank. The UK-based fintech is known as the best and cheapest option for transferring money overseas. With a free-of-charge account, it enables you to hold, exchange and top-up over fifty currencies.
Revolut is a UK-based neobank which is one of the most popular ones within Europe and known for providing the best all-round bank account. Besides a number of paid accounts, it also provides a free standard account as well. Today the online bank has over twenty five million customers around the world who use dozens of Revolut’s innovative products to make more than 250 million transactions a month.
Bunq launched its app in 2015 with the mission of reinventing banking. The Dutch fintech has eight plans to choose from: four for private clients and four for business accounts besides their plans with zero monthly fee. Although the accounts are not multi currency except for Easy Money, users can accept transfers in thirty nine currencies with conversion at market rate. In addition to their main account, the neobank provides its clients with the ability to open twenty five sub-accounts, each of which is assigned an international IBAN.
Established in 2016 and headquartered in London, Monzo has more than six million customers and three billion pounds deposits. The neobank offers business accounts and personal accounts by one free and two paid options with a possibility of creating a joint account. For the personal accounts, the company offers many useful personal finance planning tools with a remarkably user-friendly interface.
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