5 emerging neobanks transforming the European challenger ecosystem

By 8

Neobanks offer banking services to customers directly on their mobile phones or via other digital platforms. This digital-only bank trend has challenged the status quo of the incumbent banks as the former comes with personalised customer experience and product offerings. Neobanks have been aiming to transform the banking landscape.

Europe is considered a hotspot of neobanks and challenger banks with the UK leading the race. However, plenty of innovative digital-only banks have emerged in many European countries other than the UK. Their customer base has grown by more than 15 million, with a projection to reach 85 million by 2023, according to a research by AT Kearney.

IBS Intelligence brings you five innovative and upcoming neobanks with the potential to challenge the likes of Revolut, Monzo, etc. in the near future.

1. Bunq (Netherlands)

Amsterdam-based bunq is a challenger bank that offers a range of online financial services, primarily through its mobile app. The company’s app enables customers to open one free transaction account or up to 25 accounts for a monthly fee. Additionally, customers can request money from friends, split bills, and make payments in real-time. Businesses can also open a Bunq account.

The Dutch mobile bank recently, announced that it would be offering mortgages as a part of its new partnership with a third party broker. This enables bunq’s users to remove boundaries associated with obtaining a mortgage, thus encouraging people to become homeowners. The challenger bank is diverting around €100m of its users’ deposits into a new real estate fund.

2. Lunar (Denmark)

Denmark-based Lunar is a 100% digital mobile-based banking app serving individual and business customers. The app lets users pay their bills, analyze their consumption, and transfer money through the app.

The challenger bank reportedly launched an account and card designed to help teenagers better manage their money. The app has been designed for 15 to 17-year-olds and will offer a basic account and card, spend overview, saving goals, budget tools, instant notifications, and free transfers, and payments. According to Lunar, the new offering will enable it to increase its base of 150,000 users throughout the Nordics.

Lunar claims to have more than 100,000 users in Denmark, Sweden, and Norway. The company received its banking license in 2019.

3. Bnext (Spain)

Spanish mobile-first neobank Bnext offers users with a card and a linked mobile marketplace featuring banking products from select partners. The company also provides an account aggregation feature to manage traditional bank accounts from within the app. Users can connect their existing bank accounts to the platform and manage their finances in one place, at any time.

The challenger bank recently partnered with mobile commerce technology company, Button, in a bid to enable the neobank’s customers to shop and save money with brands including AliExpress, Groupon, and Black Limba. The partnership allows Bnext to enhance customer engagement and offer users an incentive to check their savings on their daily spend and accelerate the bank’s expansion across Spain and Mexico. Bnext, this month, also raised $13 million in a funding round led by its existing investors, including DN Capital, Redalpine, Speedinvest, Founders Future, Enern, Digital Horizons, Kreos Capital and Cometa -formerly Variv.

Launched in 2018, Bnext claims to have around 300,000 active users and more than EUR 100 million in monthly transactions. It operates in the European Union (EU) under an e-money license.

4. Holvi (Finland)

Founded in 2011 and based in Helsinki, Finland, Holvi is а digital bаnking sеrviсе fоr frееlаncеrs аnd еntrерrеnеurs. The company combines mоnеу mаnаgеmеnt tооls with user-friendly and intuitive business current accounts, for offering a banking ехреrienсе that helps users run their businesses.

Holvi developers have сrеаtеd an all-in-оnе bаnking sеrviсе, which streamlines finаnсiаl рrосеssеs. It is a business banking service for all self-employed and freelancers. Its digital business account combines invoicing, expense management, streamlined bookkeeping, and real-time business insights in one place. Holvi is a financial sеrviсе that ореratеs with its own license as a рауment institution and claims to have more than 200,000 customers (mostly in Finland and Germany).

5. Neon (Switzerland)

Neon is a Zurich-based FinTech startup offering a mobile banking solution that allows users easily manage their everyday banking. Recently, Neon announced a partnership along with its open-banking partner Hypothekarbank Lenzburg and British FinTech Transferwise for enabling clients of the Swiss firms to transfer money both faster and cheaper to recipients abroad.

Neon promises fairer prices than traditional options and comes with no base fees for the account and card. Customers can control their payment cards in real-time through the app, as well as make payments.

READ MORE: Top 5 valuable FinTechs disrupting the European market