We’ve witnessed rapid growth in the financial landscape over the past decade, this is in part due to significant increase in investment within the FinTech sector, which ultimately accelerated the digitalisation of our transactions. This rapid growth generated a fertile ground for only-digital challenger banks to prosper, competing with and even exceeding the value proposition of the established traditional banks, which previously saw no place for competitiveness within the banking industry.
This UK based neo-bank has proven itself as one of the most promising neo-bank to have emerged from the UK. Having been founded in 2017 and serving over 4 million customers, the company has received an astonishing rating on their service quality. Monzo even expanded to catering to business banking, attracting over 600000 business customers.
Unique Selling Points:
★ Top notch customer support
★ Offers savings accounts and travel insurance
The Pros:
↑ Regulated by FCA & PRA
↑ Spendings divided into 16 different categories
↑ A 1% interest on savings above £1,000
The Cons:
↓ Daily ATM withdrawal limit £400
↓ International ATM withdrawal fee of 3% above £200
Customer Support
24/7 in app support, phone, email.
The digitally native, German based bank is one of the earlier challenger banks in FinTech. In a 2019 funding round, N26 raised $100M in 2020, giving it a whopping valuation of $3.5 billion.
Unique Selling Points:
★ User-friendly banking products
★ Security
★ Transparency
The Pros:
↑ Loans to selected countries (DE)
↑ P2P payments by phone and email
The Cons:
↓ Limited services outside germany
Customer Support
In app support, phone, email.
The UK based neo bank was founded in 2015, with the objective of diversifying their offerings. Revolut currently stands at a valuation of $5.5B and catering to customers from Europe, the US and Australia. One of the only neo banks with access to cryptocurrencies to its premium customers.
Unique Selling Points:
★ Low fees banking
The Pros:
↑ Cryptocurrencies for premium accounts
↑ Commision-free stock trading
The Cons:
↓ No Loans/overdrafts
↓ Not accessible to emerging markets
Customer Support
24/7 in-app chat
Undoubtedly one of the most long-standing neo banks, Chime has been acknowledged as a pioneer by many within the fintech sector. With Chime’s remarkable performance, it reached a valuation of $14.5B within 7 years of operating.
Unique Selling Points:
★ Simple
★ Low Cost Banking
The Pros:
↑ No monthly fees
↑ Automatic Savings
↑ No Foreign Transaction fees
The Cons:
↓ No Loans
↓ Availability Only in US
Customer Support
In-app support, Phone, Email.
Emerging from Brazil in 2014, Nubank now has over 25 million customers in Brazil, Mexico, and recently even in Colombia. Nubank has ran several successful investment round, giving it a valuation of $25B, which makes it one of the most valued banks in the Fintech landscape.
Unique Selling Points:
★ Reward Systems
★ User Independency
★ No annuity fees
The Pros:
↑ Free account
↑ Free transfer for customers
↑ Credit available
The Cons:
↓ Fixed withdrawal fees
↓ Only in Brazil, Mexico & Colombia
Customer Support
Email, Social Media, Live chat, FAQ support, Phone.
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