Online banking has recently grown quite popular in Europe: more than half of Europeans use a digital platform of some kind to access banking products. Such banks have numerous advantages over more traditional financial institutions: they are cheaper, you can use almost all products through your phone, and they often provide unique opportunities for money transfers and currency conversion. But there is still a big difference between every two digital banks, and that’s why we’re going to help you choose a good option for your needs, turning to the Traders Union experts for help in clarifying this topic.
How online banks work
Online banks are technologically advanced financial companies that provide various banking services through the internet. Most of them don’t have any brick-and-mortar offices: to become a client or use a certain product, you just need to download a mobile app and sign up. The main advantage is that you don’t need to visit a local branch of your bank, wait in line, do paperwork, and so on. All you need and more can be accessed right from your mobile device.
Digital banks are as secure and well-regulated as traditional credit companies, and they can offer you a variety of additional options that can be especially beneficial for people who often travel abroad. But you should understand that each digital bank is different, so it is important to know the basic pros and cons of each platform. Let’s take a look at the top 3 online banks in Europe.
Launched in 2015, Revolut is a widely known British neobank regulated by FCA. It is versatile, cheap, and secure, so it is not surprising that it frequently gets called the best digital bank in Europe. It offers quick transfers across the world with relatively low fees, low-interest loans (including mortgages), and beneficial withdrawal conditions.
Founded in 2011, Wise is a UK-based financial platform that’s known for its low fees, easy transfers to about 80 countries, and cheap withdrawals. However, the service doesn’t feature any savings options, so if you need such features, make sure to check out other companies in this Traders Union article.
Monese is another well-known digital bank used by millions of clients from the EU. It is novice-friendly, very flexible when it comes to credit rating requirements, and overall client-oriented. The verification is simple here, and the basic plan is very cheap.