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'''Neobanks''' are digital-only banks that offer financial services primarily through mobile and web applications, with little or no reliance on physical branches. These banks have gained prominence in the European financial landscape in 2010s, driven by advancements in technology, changing consumer preferences, and supportive regulatory frameworks. Neobanks provide a range of services, including personal accounts, loans, and payment services, with a focus on user-friendly interfaces, low fees, and innovative features. This article provides an overview of the neobank industry in Europe, discussing its growth, key players, regulatory environment, and challenges faced by these institutions.<ref name=":0">{{Cite web |date=2023-02-21 |title=Europe's neobanks are outpacing legacy banks in app adoption |url=https://fintechmagazine.com/banking/europes-neobanks-are-outpacing-legacy-banks-in-app-adoption |access-date=2023-04-12 |website=fintechmagazine.com |language=en}}</ref><ref>{{Cite web |date=2023-03-22 |title=Neobanks across Europe fatten up as VCs demand profits |url=https://tech.eu/2023/03/22/neobanks-across-europe-fatten-up-as-vcs-demand-profits/ |access-date=2023-04-12 |website=Tech.eu |language=en-GB}}</ref> In 2022, European neobank market have generated over 570B transactions.<ref>{{Cite web |title=Europe Neobanking Market Size & Share Analysis - Industry Research Report - Growth Trends |url=https://www.mordorintelligence.com/industry-reports/europe-neobanking-market |access-date=2023-04-12 |website=www.mordorintelligence.com |language=en}}</ref>
'''Neobanks''' are digital-only banks that offer financial services primarily through mobile and web applications, with little or no reliance on physical branches. These banks have gained prominence in the European financial landscape in 2010s, driven by advancements in technology, changing consumer preferences, and supportive regulatory frameworks. [[Neobank|Neobanks]] provide a range of services, including personal accounts, loans, and payment services, with a focus on user-friendly interfaces, low fees, and innovative features. This article provides an overview of the neobank industry in Europe, discussing its growth, key players, regulatory environment, and challenges faced by these institutions.<ref name=":0">{{Cite web |date=2023-02-21 |title=Europe's neobanks are outpacing legacy banks in app adoption |url=https://fintechmagazine.com/banking/europes-neobanks-are-outpacing-legacy-banks-in-app-adoption |access-date=2023-04-12 |website=fintechmagazine.com |language=en}}</ref><ref>{{Cite web |date=2023-03-22 |title=Neobanks across Europe fatten up as VCs demand profits |url=https://tech.eu/2023/03/22/neobanks-across-europe-fatten-up-as-vcs-demand-profits/ |access-date=2023-04-12 |website=Tech.eu |language=en-GB}}</ref> In 2022, European neobank market have generated over 570B transactions.<ref>{{Cite web |title=Europe Neobanking Market Size & Share Analysis - Industry Research Report - Growth Trends |url=https://www.mordorintelligence.com/industry-reports/europe-neobanking-market |access-date=2023-04-12 |website=www.mordorintelligence.com |language=en}}</ref>


=== Growth of Neobanks in Europe ===
=== Growth of Neobanks in Europe ===

Revision as of 08:11, 12 April 2023

Neobanks are digital-only banks that offer financial services primarily through mobile and web applications, with little or no reliance on physical branches. These banks have gained prominence in the European financial landscape in 2010s, driven by advancements in technology, changing consumer preferences, and supportive regulatory frameworks. Neobanks provide a range of services, including personal accounts, loans, and payment services, with a focus on user-friendly interfaces, low fees, and innovative features. This article provides an overview of the neobank industry in Europe, discussing its growth, key players, regulatory environment, and challenges faced by these institutions.[1][2] In 2022, European neobank market have generated over 570B transactions.[3]

Growth of Neobanks in Europe

The neobank industry in Europe has experienced rapid growth in recent years, with several new players entering the market and attracting millions of customers. Key factors:

  1. Technology advancements: The widespread adoption of smartphones and high-speed internet has made it easier for consumers to access banking services through digital channels, paving the way for the rise of neobanks.
  2. Changing consumer preferences: As consumers increasingly demand personalized, user-friendly experiences, neobanks have capitalized on this trend by offering innovative financial products and services tailored to the digital age.[4]
  3. Supportive regulatory environment: The European Union's Revised Payment Services Directive (PSD2) has facilitated the entry of non-traditional financial players, such as neobanks, into the market by enabling third-party providers to access customer account data from traditional banks with customer consent. This has allowed neobanks to develop innovative solutions and compete with established banks.[1][5][6]

The European neobank landscape comprises a diverse range of players, offering various financial services to consumers and businesses. Some notable European neobanks include:

  1. Revolut (United Kingdom): Launched in 2015, Revolut is one of Europe's largest neobanks, offering services such as personal accounts, debit cards, currency exchange, and investment products. The platform is known for its low fees, real-time transaction notifications, and multicurrency support.[7][8]
  2. N26 (Germany): N26 is a prominent German neobank that has expanded its operations across Europe, providing personal accounts, debit cards, and money management features. N26 has gained popularity due to its user-friendly interface, low fees, and innovative features such as real-time transaction notifications.[9][10]
  3. Monzo (United Kingdom): Monzo is a UK-based neobank that offers personal accounts, debit cards, loans, and budgeting tools. Monzo has attracted a large customer base due to its intuitive app, fee-free spending abroad, and features such as instant spending notifications and savings "pots."[11][12]
  4. Starling Bank (United Kingdom): Starling Bank is a digital-first challenger bank that offers personal and business accounts, loans, and other financial services. Starling is known for its user-friendly mobile app, competitive exchange rates, and features such as real-time transaction notifications and spending insights.[13]
  5. Monese, London-based fintech which secured 35M from HSBC in 2022.[14][15]

References

  1. ^ a b "Europe's neobanks are outpacing legacy banks in app adoption". fintechmagazine.com. 2023-02-21. Retrieved 2023-04-12.
  2. ^ "Neobanks across Europe fatten up as VCs demand profits". Tech.eu. 2023-03-22. Retrieved 2023-04-12.
  3. ^ "Europe Neobanking Market Size & Share Analysis - Industry Research Report - Growth Trends". www.mordorintelligence.com. Retrieved 2023-04-12.
  4. ^ "What Is A Neobank? – Forbes Advisor". www.forbes.com. Retrieved 2023-04-12.
  5. ^ "Open banking in Europe: The impact of the Revised Payments Services Directive on Solarisbank and Insha" (PDF).
  6. ^ Padmanabhan, Arun (2021-10-07). "Explained: Neobanks, the next evolution of banking". The Economic Times. ISSN 0013-0389. Retrieved 2023-04-12.
  7. ^ Makortoff, Kalyeena; correspondent, Kalyeena Makortoff Banking (2023-01-16). "Fintech firm Revolut assembles behavioural team after criticism of its corporate culture". The Guardian. ISSN 0261-3077. Retrieved 2023-04-12. {{cite news}}: |last2= has generic name (help)
  8. ^ "Revolut becomes most valuable UK start-up after £24bn valuation". BBC News. 2021-07-15. Retrieved 2023-04-12.
  9. ^ Nonninger, Lea. "German neobank N26 gets closer to US expansion". Business Insider. Retrieved 2023-04-12.
  10. ^ Nast, Condé. "N26 review: a challenger bank lacking key features". Wired UK. ISSN 1357-0978. Retrieved 2023-04-12.
  11. ^ Dawson, Freddie. "App Bank Mondo Crowdfunds £1M In 96 Seconds". Forbes. Retrieved 2023-04-12.
  12. ^ O'Hear, Steve (2017-04-05). "Monzo, a UK digital-only challenger bank, granted full banking license". TechCrunch. Retrieved 2023-04-12.
  13. ^ "Starling 'Best British Bank' four years running". Starling Bank. Retrieved 2023-04-12.
  14. ^ Sawers, Paul (2022-09-20). "European neobank Monese nabs $35M from HSBC". TechCrunch. Retrieved 2023-04-12.
  15. ^ O'Hear, Steve (2015-09-21). "Monese Launches In U.K. To Let Immigrants And Expats Get A Mobile Banking Account". TechCrunch. Retrieved 2023-04-12.
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