The disintermediation of traditional banks and a boom in the FinTech sector has given rise to a new kind of bank. A bank which is leaner, purely online, mobile-friendly and has a younger target audience. These new ‘FinTech banks’ are attracting more customers, and interest from investors, as they mature from small Tech StartUps to potential future giants in the financial industry. Here is a list of five key players in the ‘new banking’ space.
A highly interesting emerging player in the digital banking space is the UK-based Atom Bank which has raised £135 million in funding led by the Spanish bank, and prominent fintech Investor, BBVA. Atom Bank has acquired its banking license in 2015, and has launched its mobile banking platform in 2016, targeting a young, ‘smartphone-addicted’ customer demographic.
Monese is a London-based branchless digital bank that offers instant account opening via their Android or iOs app, regardless of whether the customer can provide a utility bill or not. This provides a great service for expats, migrants, and digital nomads as all you need to open a bank account is an ID, an EEA address and you need to be above 18 years of age. Monese offers easy account opening, cheap international payments, and a Visa debit card.
N26 is a German FinTech startup that aims to revolutionize the banking industry and how people spend, send and save money. Number26 combines its current account with an intuitive mobile & online banking experience. N26 has secured over tens of millions in venture capital and is rapidly developing into a smart alternative to your traditional retail bank. N26 has also partnered up with TransferWise to provide low-cost international money transfers and has recently launched its own online investment service to better service its customer base.
The Malta-based ‘Innovative Online Bank’ stands out in the digital banking space for offering 3.50% interest on a 5-year term deposit, which is a much better yield than many 5 year bonds pay these days. Nemea also offers current accounts, savings accounts, and payment services to its private customers and is 100% online. Nemea also offers banking services to business and is a fully licensed bank and regulated by the Malta Financial Services Authority.
Simple is another very interesting player in the digital banking space and they have arguably the best banking commercial I have ever seen (you can check it out here). Simple offers mobile and online banking services which include online banking, a visa debit card, budgeting and saving tools and money transfers without charging you any fees for US-based customers.
If you want to learn more about digital banks and how you can leverage new financial services from the fintech sector, download my ebook Everything You Need To Know About Money – The Complete Financial Intelligence Handbook.