Neobanks, also known as challenger banks, have been shaking up the traditional banking industry with their user-friendly interfaces, efficient customer service, and lower fees. According to a recent report by FinTech News, Europe’s top 10 neobanks now serve a combined 64 million customers.
The top three neobanks in Europe are Revolut, N26, and Monzo. Revolut, founded in 2015, is currently the largest of the three with over 10 million customers in Europe and a total of 13 million worldwide. N26, founded in 2013, has 7 million customers across 25 countries in Europe and the US. Monzo, founded in 2015, has over 4 million customers, with the majority coming from the UK.
Other neobanks on the list include Starling Bank, Atom Bank, Bnext, Bunq, Chime, Varo Money, and Tinkoff Bank. Despite being relatively new players in the industry, these neobanks have been gaining traction, thanks to their superior user experience and technologically-driven services.
The rise of neobanks has been driven by changing customer preferences, particularly among younger consumers who are more comfortable with digital banking solutions. The pandemic has also accelerated the adoption of digital banking services, with many consumers opting for online banking instead of visiting physical branches.
While neobanks have disrupted the traditional banking industry, they still face a number of challenges, including regulatory hurdles and profitability issues. Nevertheless, their success thus far has demonstrated that consumers are eager for a better banking experience, and neobanks are more than capable of delivering.