Neobank
A neobank is a fully digital bank without physical branches, usually built on modern cloud infrastructure with strong app-centric UX.
Neobanks (N26, Revolut, Bunq, Monzo, Wise) offer a subset of classic banking via app — payment account, Mastercard, transfers, sometimes crypto or stock trading. Emerged post-2014, they raised UX expectations across banking. Advantage: ergonomics, speed, multi-currency. Disadvantage: often narrower product set (no mortgages, limited business) and sometimes weaker customer support.
Example
A Dutch freelancer opens a Bunq account in 5 minutes on their phone. IBAN active within hours, free international payments up to limit, sub-accounts for tax/VAT instantly set up. Traditional bank: minimum 2 weeks of paperwork.
Frequently asked questions
Are neobanks safe?
Provided they're an EU bank with DNB/BaFin licence and deposit guarantee: yes, comparable to traditional banks. Under €100,000 guaranteed in EU.
Related terms
Further reading
- → Our service: Fintech sector