Neobanks are fintech firms that offer bank-like products and services such as making payments, money lending and money transfers at the comfort of your phone. They have no physical locations and are entirely online. The neobanking global market size is expected to grow at a phenomenal compound annual rate of 47.7%, between $47.1 billion in 2021 to $722.60 billion in the year 2028.
Some of the factors that we expect to fuel the growth of neobanks are fast and real-time services such as real-time accounting, favorable interest rates, increased demand for client convenience and low or no transactional fees. Moreover, they are relatively safer than most traditional banks. It’s no wonder why top online gaming platforms like GGBet use Neobanks to facilitate customer transactions to and from the site.
Today, some of the best neobanks offering services to customers in different parts of the globe include:
It is the largest neobank in Latin America with its headquarters in Brazil and holds a license from Brazilian Central Bank. Products provided in this app are a digital account called NuConta, loans, life insurance and an international credit card. Opening a NuConta account is quick, easy and free of charge.
The NuConta account offers an interest rate of 100% of the Interbank Deposit Rate every working day. Furthermore, there are no maintenance fees, zero deposit charges and no charges to acquire a debit card. In addition, if you transfer money using TED or Pix, you do not pay any transactional fees. However, a R$6.50 fee is charged when you withdraw money.
For safety purposes, you can monitor your transactions; if you lose your card, you can lock it through the app, and you can use either a touch ID, password or face recognition to keep your account safe.
Located in San Francisco, California, Varo money currently has a rapidly growing customer base of over 1 million active users. It was founded back in 2015, and by July 2020, Varo was granted a bank charter by the Office of the Comptroller of the Currency. Its primary services are offered via the Varo Money app, which is easy to set up on your phone.
The platform does not have a minimum balance, overdraft fees, monthly fees and credit checks. Moreover, the Advance Varo app can give you an advance of up to $100 on your paycheck. In addition, if you deposit directly to the app, you enjoy a 3% Annual Percentage Yield, and you can also choose how much of your pay that will automatically be saved.
Federal Deposit Insurance Corporation insures deposits of up to $250,000, making Varo money safe to use.
N26 is a digital bank based in Berlin, Germany, and has a banking license from BaFin. It offers its clients a basic current account and a Debit Mastercard. The digital bank also provides an N26 app that can be used for in-store purchases.
The N26 basic account has no monthly fees, and basic bank transactions in foreign currencies attract no charges. In the Eurozone, except for Austria and Italy, ATM withdrawals for primary account holders are limited to five transactions and any additional transaction attracts a €2 fee. ATM withdrawals for the primary account attract a fee of 1.7% when transacting in foreign currencies and zero charges for N26 You and Metal accounts. Using the Moneybeam service, you can send money instantly without filling in the IBAN.
You can use fingerprint identification or the new advanced 3D technology to secure your account, and you can lock your card without having to contact the company’s support center.
Revolut is a fintech firm based in London, England. It offers debit cards, currency exchange, virtual cards, Apple Pay, stock trading, commodities and cryptocurrencies.
You attract no charges when sending or receiving money on the app, and you can send a link to people who are not Revolut app users and request payment. The company also offers favorable exchange rates, and to protect the company against exchange rate fluctuations, payments made on the weekend are subjected to a rate of between 0.5% to 2% fee.
For crypto traders, a fee of 1.5% is levied when you are trading crypto on the platform. However, you cannot deposit or spend crypto on the platform, but you can convert it into fiat currency.
Neobanks have embraced innovation to cater to their client’s personal needs, unlike traditional banks that offer rigid services. Thanks to the low to naught charges on transactions and attractive interest rates, they are an unstoppable movement. Better yet, given that neobanks also provide additional services such as money management to allow for sustainable spending habits, it is no surprise that the client base is expanding by the day. So, which neobank are you currently using? Drop a comment right below and let us know what you enjoy most about your neobank!