5 Emerging Neobanks in the European Challenger ecosystem

By Gloria Methri

Neobanks are a type of challenger bank that operates solely digitally and utilises technology to offer streamlined, user-friendly banking services.

Europe is considered a hotspot of neobanks and challenger banks, with the UK leading the race. They are redefining financial services with lower fees and enhanced customer experiences, contributing to a significant shift in the European banking landscape.

According to recent reports, digital-only banks have experienced a 20% increase in customer acquisition year-over-year and could capture up to 15% of the European market by 2025.

Let’s look at five emerging neobanks making an impact in the European challenger ecosystem:

• Finom

Berlin-based Finom is designed for freelancers, start-ups, and small businesses seeking simplified financial management. It offers multi-currency accounts, allowing transactions in various currencies, automated expense management, and flexible payment solutions such as virtual cards and invoice handling. In February, the challenger bank raised €50 million in Series B funding to expand its European presence and enhance its technological infrastructure.

• Holvi

Finland’s Holvi caters specifically to entrepreneurs and small business owners with a blend of banking and financial management tools. Holvi provides business account management combined with invoicing and financial reporting tools, built-in analytics for cash flow insights, and efficient expense tracking. Acquired by BBVA in 2016, Holvi has scaled significantly, leveraging its parent company’s resources to enhance its offerings.

• Lunar

Founded in 2015, Lunar focuses on delivering a comprehensive digital banking experience to customers in the Nordic region. It aims to provide a fully integrated financial experience, blending traditional banking with innovative financial tools. Lunar features personal finance management tools, multi-account functionality for both personal and business use, and investment opportunities in stocks and ETFs.

• Monese

London-based Monese targets expatriates and immigrants with its quick and accessible banking services. Monese enables fast account setup with minimal paperwork, supports multiple currencies, and offers international transfer capabilities along with budgeting tools. The challenger bank has grown its customer base significantly, now serving millions across Europe and expanding its financial product range.

• Rocker

Swedish neobank Rocker, which launched in 2021, emphasises a mobile-first banking approach with an easy-to-use app. Rocker provides cashback on purchases, rewards for app engagement, and financial insights for tracking spending and managing finances. The bank has rapidly gained traction in Sweden and is extending its services to other Nordic countries.