More than 300 neobanks are now competing with traditional banks, offering services for everyone: businesses, individuals, and even teens.
The Complete Global Neobank Directory
The internet’s rise and our reliance on smartphones have forced a banking revolution. Old institutions are scrambling to offer digital solutions, but a new breed of banks called “neobanks” – have emerged, built from the ground up for the digital age.
Ever wondered what a neobank is and how it works? What are the mind-blowing perks and hidden drawbacks? And most importantly, which one is perfect for you? Let’s dive in and uncover the answers.
Finding the Best Neobank
After understanding what a neobank is, the next step is choosing one. With so many players in the market, including those established in the United States and many newcomers, the choice can be difficult. To make the right decision, you must first think about your personal needs and what you hope to gain from a neobank.
You’ve likely heard of popular mobile banks such as Chime, Revolut, Bunq, and Monese. These platforms offer various features, deals, and pricing. You can find all the information you need in a directory to help you compare your options.
Neobanks for Individuals
Among the many neobanks for individuals, two platforms that stand out are Chime and Monzo. Chime, based in the United States, offers two plans for individuals and one for professionals. Its personal users get MasterCard debit cards that can be used globally, with free withdrawals within the Eurozone and unlimited free payments abroad. All of this is managed through a simple and intuitive mobile app.
Revolut offers its users other great advantages, including a referral bonus and a Cashback feature. It also provides free and unlimited payments in both Euros and foreign currencies, making it a great choice for travellers.
Digital Banking for Professionals and Businesses
If you are a freelancer or self-employed business owner, you have a wide range of choices for dedicated banking services. Platforms such as Everestcard, Go Solo, Soldo, and Starling Bank are all neobanks that provide solutions designed to help you manage your professional bank account.
Banking for Children and Teenagers
For parents who want to help their children learn to manage money, several neobanks offer services designed specifically for minors. Parents can find banking packages from platforms like Monzo, GoHenry, Rooster Money, Osper, Greenlight, and Nimbl that are suitable for the needs of children aged 12 to 17.
What Services Do Neobanks Offer?
Neobanks typically offer the management of a current account that comes with a bank card. This card allows you to make payments and withdrawals, and some neobanks also offer virtual cards to make online transactions more secure. Beyond these basic services, some neobanks have more advanced offerings, such as personal loans or savings accounts. Other platforms even allow their customers to invest in cryptocurrency.
Neobanks and Cryptocurrency Investing
Among the neobanks that let you buy cryptocurrency is Revolut. This UK-based neobank allows customers to invest in five different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. You can also explore Wirex, a neobank that is completely dedicated to cryptocurrency. With Wirex, you can buy and store many different digital currencies, from Bitcoin to Stellar Lumens. Additionally, the neobank Lydia offers a bank account fully dedicated to trading, allowing you to invest in stocks, metals, and cryptocurrency,
Neobanks for Money Transfers
Money transfers are a key service for both traditional banks and neobanks. Many neobanks offer very competitive rates for these transfers, making them a great option for people who send money abroad. This is the case with Wise, Curve, and Revolut. For professionals who make many money transfers, Qonto and Anytime provide solutions that are tailored to their business needs.
Are Neobanks Truly Free?
In reality, there are no completely free neobanks. Instead, they offer “€0” plans that include a specific set of services. For example, Orange Bank offers a Standard Card for €0 per month, which includes free payments and withdrawals in Euros, contactless payments, and a free insurance plan for your payment method. All of this is managed through a simple mobile app.
Similarly, N26 offers a free Standard card that includes services designed for travelers. In most cases, these platforms offer a basic plan for free and a monthly subscription for more elaborate services.
5 Advantages of Neobanks
- Innovative Features: The mobile apps have modern and innovative features.
- Affordable Pricing: You get a free bank card and a highly competitive price list.
- Easy Account Opening: You can open an account in just a few minutes without needing to meet income conditions or commitments.
- Real-Time Tracking: You can view your account’s status and transactions in real-time.
- Variety of Services: Neobanks offer a wide variety of services beyond a simple bank account.
What is a Neobank?
Around 2010, new companies offering digital banking services were born in the United States. These were the neobanks. “Neo” means new, because their banking services are accessible exclusively online or through a mobile app. The main goal of neobanks is to provide essential banking services to a wide audience—from students to entrepreneurs—anytime and anywhere, with a focus on mobile management.
The vast majority of neobanks offer fund management and money withdrawal services, but these withdrawals are made from the ATMs of their partner banks. This partnership is essential because neobanks have no physical branches or ATMs of their own. The absence of a physical structure is what allows neobanks to offer such competitive rates compared to traditional banks.
Finally, while neobanks are very accessible and mobile-friendly, they also have some drawbacks. They offer a much more limited range of services than traditional banks, with no loans, project financing, or overdrafts. The lack of physical branches also makes it difficult to process check transactions. Additionally, customer support for some neobanks may be limited to emails, social media, or chatbots.
