Having arrived on the web a few years ago, the neobanks aim to digitize and facilitate banking operations. New players who quickly democratized by offering attractive services at lower costs. Full of qualities but not without flaws, neobanks are now numerous and it is advisable to study their offers before choosing the one that best suits your needs. The opportunity for us to put you on the path by presenting you in depth the neobanks.
the advantages of traditional banking without its disadvantages
Fast, fluid, accessible and inexpensive, neobanks are the perfect ally for technophiles. Although their range of services is generally small, these online banks emphasize simplicity. So, if you want to make deposits, wire transfers and payments, these banks will be perfect for you. Often accompanied by intuitive, free and fluid applications, they make simple operations flourish. However, if you want to take out a loan or an overdraft, you will unfortunately have to turn to a traditional bank.
Accessible to all
The great strength of neobanks is above all their accessibility. Generally without income conditions, the latter sometimes offer a welcome gift, like Orange Bank. This French neobank offers up to € 80 for the very first account opening. It only takes a few minutes to take advantage of it since it suffices to enter data in a form, choose an offer, sign a contract, send supporting documents and make a first payment. But the bank of Orange and Groupama is not the only neobank to want to be accessible and attractive.
On the Nickel side, you can take advantage of its services from a tobacconist. 5 minutes are enough to create an account and leave with a RIB and a Mastercard. Only downside, the cost of the service of 20 € per year. However, you can benefit from it even if you are prohibited from banking. The big plus is that you can deposit and withdraw cash at a tobacconist, for a few fees (2% of the amount for deposits and 0.5 € for withdrawal).
Making money by spending it is the secret of cashback. And at the German neobank Vivid, you can earn up to 25% cashback on your daily expenses. Up to € 150 can be recovered monthly, thanks to the 0.1% recovered on purchases made in Europe and the 1 to 3% on purchases outside of Europe for Vivid Prime customers. The cashback is then stored in one of your accounts. Spending to earn money, this is the promise of several neobanks, like SoShop or Yeeld.
Partnerships with major brands that are attractive since this type of service is flourishing. Nevertheless, they come at the expense of more general services which tend to interest more Internet users. If money grew on trees, it would know. No miracle behind this cashback, just partnerships that can be beneficial to you. It remains to be seen whether you will be clients of this kind of proposition.
insurance and warranty extensions
Neobanks are also a host of insurance and warranty extensions available to you. N26 in particular allows owners of its Black card to benefit from undeniable advantages, such as insurance when traveling, coverage in the event of theft or warranty extensions on household appliances, audiovisual and IT products. 12 additional months available to you for any purchase made using the account linked to this Black card. These services, which will delight globetrotters, are also found in other neobanks, with sometimes some differences.
At ZEN, for example, your damaged, non-received or defective product is immediately reimbursed. A warranty to which is added a one-year warranty extension for any electronic product purchased in the European Union. And even if your product is past its original warranty period, you can cover it beyond with additional protection. A godsend, especially since the warranty extensions available at usual retailers are chargeable. Great savings that ultimately cost nothing.
easily accessible cryptocurrencies
Years go by and cryptocurrencies increase in value. The price of Bitcoin is soaring and the general public finally deigns to ogle this still obscure world for many. Investments that can pay off, it is still necessary that the investments are well thought out. At Revolut for example, buying cryptocurrencies and trading for free on stocks listed on the NYSE and Nasdaq are possible. In addition, an account aggregator is available there, allowing you to consolidate all your external bank accounts directly on a single application. Downside to service: customer service is only provided in English.
Similar scenario with the British neobank Wirex. Cryptocurrencies and traditional currencies are, however, placed on an equal footing. Real-time conversion at the point of sale, zero exchange fees, cashback in bitcoin, in short, a host of advantages for a few disadvantages: high withdrawal fees, a neobank exclusively in English and customer service that is difficult to reach. There again, several choices are available to you if you wish to opt for a neobank anchored in the world of cryptocurrencies.
Free currency conversions
The interest of a neobank also lies in its attractiveness abroad. And some make it easier for you by offering free currency conversions. Although not all of them offer it, this service can be found with many names in fintech. Still at Revolut, the free standard account allows you to pay in 150 currencies without having to pay any commission. There are a few exceptions, however, such as the Thai baht and the Ukrainian hryvnia.
On the ZEN side, using the neobank card means saying goodbye to any costs. And for good reason, the conversion fees are non-existent, as are the withdrawal fees abroad. You can therefore manhandle the local ATMs without worrying about blowing up your bank account. Buying online can even save money, since converting to your currency automatically usually saves you money. Just stay within the limits of your subscription and you risk nothing.