In France, 18 neobanks are currently operating, and six new players are expected to launch before the end of the year. Today, this sector boasts 2.6 million customers in France, three times more than in 2017. This trend isn’t unique to France; neobanks are also developing rapidly throughout the rest of Europe. To explain this phenomenon, Stéphane Dehaies of the KPMG France network explains: “By focusing on solutions centered on everyday banking services and payments, neobanks have perfectly understood how to adapt to new consumption patterns.”
It’s true that opening an account with a neobank is very simple and quick; few documents are required, and attractive welcome offers encourage new customers to sign up. Unlike online banks, which are necessarily owned by a traditional bank (BforBank is a subsidiary of Crédit Agricole), neobanks are payment institutions that have obtained a banking license and focus on 100% mobile access. Much cheaper than traditional banks, but slightly more expensive than online banks, neobanks still offer a “low-cost” strategy. The most popular players are Orange Bank, C-Zam, N26 , and Monese.
This second study
, “Overview of Neobanks in France,” conducted by KPMG partners, reports: “Neobanks are managing to generate savings that they pass on to their customers through lower fees. Several have already announced they are financially stable. Unlike traditional banks, which aim to serve all customer segments and have greater financial resources for innovation, neobanks do not hesitate to select priority segments.” Taking Revolut as an example, its “priority segment” is primarily millennials, or entrepreneurs.
In the current context, where data protection is a major concern, neobanks must continue to work in order to find a genuine relationship of trust with customers.
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