- 1 What is a neobank?
- 2 What neobanks are available in France?
What is a neobank?
A neobank (also called mobile banking Where digital bank) is a new generation bank account, fully controllable from a smartphone. It offers great convenience and great responsiveness in managing daily expenses.
Which fintechs can be designated as “neobanks”?
The term “neobank” includes several types of fintech:
- credit institutions (for example, N26, Orange Bank, Bunq and Ma French Bank) which therefore have the same license as online banks and traditional banks and can offer an authorized overdraft
- payment entities (eg nickel count)
- electronic money institutions (eg Revolut) that cannot accept cash
- And finally, the payment service provider agents (all other neobanks) that do not hold their clients’ money, but go through a mandate given to an approved bank
In common language, the term “neobank” includes all kinds of fintechs that offer a payment card with a fully dematerialized bank account, with easy, fast and paperless registration. But in the eyes of Resolution and Prudential Control Authority (ACPR), this term legally can only be used by credit institutions. This is how he recalled it in a publication dated April 8, 2021: thus, a service provider agent cannot therefore qualify as a neobank in its communication. However, on our site we will continue to use the term neobanks to qualify fintechs that have the same economic model and offer accounts with simple and modern means of payment.
However, we will specify the legal status of each neobank later in the article, as well as on their individual pages.
What are the differences between mobile banking and online banking?
Neo banks naturally look very similar to online banks, but there are a few differences:
- Mobile banks have a mobile app more advanced than most banking institutions, particularly in terms of speed, ergonomics and functionality. Which is not surprising, since they were designed for this! Online banks, on the other hand, have been designed for computer use. Since the advent of mobile banking, some like boursorama, have worked hard to modernize their app and catch up. In our opinion, only Boursorama and Fortuneo now have sufficiently developed and ergonomic applications to be comparable to those of mobile banks!
- Mobile banks have a limited banking offer, which is often reduced to a checking account with a bank card. However, we note that some like N26 or Orange Bank are gradually expanding their catalog: bank book, consumer credit… But the banking offer is much broader in online banks, where it is possible to open an insurance contract – Fri, a securities account bank or a PEA, to take out a mortgage, etc.
What are the advantages and disadvantages of a neo bank?
Digital banks have great strengths but also some weaknesses, of which here is an overview:
What is the difference between a French neobank and a foreign one?
The question may arise, since some neobanks present in France are foreigners:
- N26 and living money they are german neobanks
- Monese Y revolution they are british neobanks
In practice, there is no difference since foreign neobanks are authorized to offer their services in France. His bank accounts and credit cards are smooth and his apps work perfectly.
The only difference is that bank accounts are hosted in their home countries. Thus, when you subscribe to N26, you open an account domiciled in Germany, with a RIB and an IBAN starting from DE. This is completely legal, but you still need to declare it to the tax authorities on your next tax return. This is addendum 3916, declaration of a resident of an account opened outside of France. From now on, you will no longer have to do it every year, the administration remembers your account abroad and you will only have to declare the date on which you close it.
Then no problem, but if that discourages you, you can turn to Orange Bank, the best 100% French neobank.
What neobanks are available in France?
Launched in 2015, N26 is a mobile bank of German origin. Its mobile application, considered one of the most innovative to date, has forged the reputation of fintech. The latter was a dazzling success and to date claims more than seven million users in 25 countrieswhich is just huge, of which 1.75 million in France alone. To appeal to all profiles, N26 now offers four different bank cards, including a free one, with increasingly developed offers for premium accounts (travel insurance included, sub-accounts, shared sub-accounts, rounding function, cashback on certain brands, second card , etc.)
N26 continues its development and regularly offers new features in your app. It grossed over $300 million in early 2019, allowing it to break into the US market.