Focus on Neobanks in Europe
Neobanks are multiplying in the world and particularly in Europe, becoming a real alternative to traditional banks. Over the last ten years, these neobanks have been evolving and convincing more and more users. Let’s take a look at the state of neobanks in Europe, from leaders to newcomers.
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Several categories of neobanks
The term neobanking is quite general and covers a whole range of different players. The first wave of neobanks in Europe were mainly targeted at individuals. Their goal was to become a new option for managing finances and to compete with traditional banks in this niche. Nowadays, neobanks do not stop at individuals: they intend to convince independent professionals as well as companies.
For individuals:
The German neobank N26 for example is among the most prominent players in the sector. N26 originally focused its offers for individuals by allowing them to open a bank account in less than 10 minutes, all online. As a digital bank, N26’s mobile application is one of the most complete in its field. With over 7 million users, N26 is a European leader in digital banking.
The operator Orange in France has also ventured into the world of finance by launching Orange Bank in 2017. Their services are also made to address individuals. Orange Bank makes available several bank card offers, including family solutions addressing even the youngest (12-17 years). One of the particularities of the Orange neobank is the fact that it has physical branches for its customers. As a neobank is by definition a digital bank, it generally does not have a branch. Orange is therefore taking advantage of these branches dedicated to their classic offers to give new Orange Bank customers access to physical advice.
Finally, Revolut is a British neobank that appeared in 2014. It also offers the aforementioned services, namely bank cards, account management etc… Where it stands out from the competition is on international money transfers, on which it does not charge commission.
These examples are exhaustive and represent only some of the larger players in the industry. More and more neobanks are emerging and offering similar services. Others have chosen to focus on offers dedicated to professionals.
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For professionals :
As we mentioned above, neobanks have extended their services to professionals. From self-employed entrepreneurs to VSEs and SMEs, almost all types of businesses are now targeted by neobanks.
Qonto is one of the leading digital banks for professionals. It focuses mainly on offers for the self-employed and SMEs. You can open a business account in a much shorter time than opening a business account at a traditional bank. As with its counterparts, Qonto divides its offers into several options to remain flexible.
Other, more discreet players such as Olkypay are also focusing on professionals who want to bank in a different way to traditional banks. Innovative services are emerging from these smaller neobanks, eager to make their mark. For example, Olkypay offers a complete and automated service for managing unpaid bills, which greatly assists professionals in their administrative management.
It is also difficult not to mention once again the giants Revolut and N26. Even if they were originally aimed at private individuals, their proposals are nowadays extended to professionals. With a large number of users, both banks are expanding their scope and offerings. “For example, Revolut for Business has 5 different packages, covering both freelancers and companies.
The situation of neobanks in Europe is therefore very variable as the sector is new and there are many players. N26 and Revolut are among the best known and have a huge user base, but this does not prevent other neobanks from making themselves heard. In 2021, almost every situation is covered by at least one neobank. Whether you are an individual looking for a change, a self-employed person or a business owner, you should find a solution that suits your situation.
