The Seven Best Digital Banks in Europe

A new wave of digital banks has fundamentally changed the banking industry in recent years. Customers can now choose from a much wider range of innovative banking services.

Disruption in the European digital banking and fintech sector has been particularly intense. New neo-banks and challenger banks have emerged and attracted many enthusiastic customers.

For example, London-based Revolut grew from 1.5 million to 10 million customers in just two years. Berlin-based N26 doubled its customers to more than 5 million in the two years to February 2020.

Here at Veriff, we’re lucky enough to work with many digital banks from across Europe. We help to secure their online systems and provide robust identity verification. These firms tend to be very tech-savvy in their approach to business.

So how do you choose which digital bank is right for you? There are many factors to consider and details to wade through and it is of course a very personal choice. Here we consider what makes a neo-bank great and we compile our list of the seven best digital banks in Europe.

What to look for in a digital bank?

There are three main factors to look at in the first instance when choosing a digital bank. These are: ‘security’, ‘fees and charges’ and ‘practicality’.

Our list of the seven best digital banks in Europe features companies with an impeccable reputation, high customer satisfaction scores and FDIC coverage so your money is protected.

• Security – Any digital bank that you choose should have a high level of security. This includes login processes such as identity verification. Digital banks should also have the right licenses and authorizations.
• Fees and Charges – Digital banks often have lower fees and charges than conventional banks. This is because they have lower operating costs and overheads.
• Practicality – Does the digital bank you are considering fit your needs? Does it provide an international debit card, an easy-to-use app and the features you need like business or personal access?

What are the seven best digital banks in Europe?

At its essence, creating a list of the 7 best digital banks in Europe is a difficult task. All the neo- and challenger banks that are out there have unique offerings. They also appeal to different customers from different countries. It's not easy to categorise them by number of customers, revenue figures and reach. 

Instead, we've compiled a list of seven digital banks which innovate and inspire the market. This could be because of their size, unique features or reputation.

So, without further delay, let's dive in… 

Revolut

Revolut was founded in the UK and currently operates in 33 countries. It is by far the largest digital bank, with more than 25 million users.

Revolut's popularity comes from the fact that it offers very low fees. It also offers a wide range of services. As one of the best digital banks in Europe Revolut is known for its forward-thinking approach to banking, customer focus, and ability to adapt to its technology and services to customer demand.

Reviews:

• Trustpilot: 4.3/5 rating of ‘Excellent’ from 129,508 reviews (at time of writing)
• App Store: 4.9/5 rating from 569,120 reviews (at time of writing)
• Google Play: 4.5/5 rating from 2,225,875 reviews (at time of writing)

Number of users: More than 25 million

Services offered:

• Personal loans
• Fee-free currency exchange
• Free international transfers
• Phone insurance
• Travel insurance cryptocurrency trading.

Valyuz

Lithuania-based Valyuz is a leading electronic money institution. The firm has a fast, simple and user-friendly application process. Valuz's technical know-how and great customer service make it one of the best digital banks in Europe.

Banking with Valyuz allows users to:

• Use the Apple and Android mobile apps
• Make wire transfers in 35 currencies to 212 countries
• Get a prepaid MasterCard
• Exchange currency at excellent rates
• Use superior secure login technology
• Have multiple signatories for one account

Monzo

Monzo is headquartered in the UK and has more than 7 million customers. It is another strong contender for the best digital bank in Europe. 

Reviews:

• Trustpilot: 4.3/5 rating of ‘Excellent’ from 26,083 reviews (at time of writing)
• App Store: 4.9/5 rating from 140,415 reviews (at time of writing)
• Google Play: 4.3/5 rating from 104,000 reviews (at time of writing)

Number of users: 7.2 million

Services offered:

• A variety of accounts – personal, joint, and business
• Interest on saving ‘pots’
• Overdrafts
• Personal loan facilities
• Ability to get your salary or student loan paid 24 hours early
• Cash deposits through Paypoint
• Energy switching
• Fee-free spending when abroad
• Regulated and authorised by the FCA and FSCS up to £85,000

Starling 

Starling Bank from the UK is often referred to as the ‘darling’ of the digital banking world. In 2019 the firm's personal account won the Best British Bank and Best Current Account 2019. Their business account has also won awards.

Starling was founded by experienced banking chief Anne Boden in January 2014. Many analysts praise Starling’s business model and approach to customers.

Reviews:

• Trustpilot: 4.3/5 rating of ‘Excellent’ from 34,479 reviews (at time of writing)
• App Store: 4.9/5 rating from 404,700 reviews (at time of writing)
• Google Play: 4.4/5 rating from 99,000 reviews (at time of writing)

Number of users: 2.7 million

• Services offered: 
• A variety of accounts – personal, joint, Euro and business
• Interest on current accounts
• Overdrafts
• Mobile cheque deposits: Starling Bank was the first to enable customers to deposit cheques of up to £500 using their smartphones
• Savings goals
• Loan facilities
• Desktop features
• Partnership with the Post Office for cash deposits and withdrawals
• Ability to sync accounts with third-party services
• No charges for spending or withdrawals abroad
• Regulated and authorised by the FCA and FSCS up to £85,000

N26

Germany-based N26 is a fully-fledged and licensed bank with more than 8 million users. It gives its users free retail and business accounts with no hidden fees. It also has deposit insurance of up to €100,000.

N26 is famous for its unique ‘Space’ feature that allows customers to create sub-accounts for whatever purpose they want. These ‘Spaces’ allow users to set financial goals and track their progress towards their target.

Reviews:

• Trustpilot: 3.1/5 rating from 27,573 reviews (at time of writing)
• App Store: 4.6 rating from 8,377 reviews (at time of writing)
• Google Play: 3.3/5 rating from 125,728 reviews (at time of writing) 

Number of users: 8 million

Services offered:

• Current accounts
• Business accounts
• Savings accounts
• Time deposit accounts
• Debit cards
• Credit cards
• Consumer loans
• Car loans

Hello Bank

Hello bank was created in 2013 by BNP Paribas. It is known for keeping up with the latest trends and technological innovations. It has also been applauded for the way its banking app complements busy consumer lifestyles.

Hello bank's basic banking current account costs just €1 per month. That includes web, app and phone banking, a debit card, standing orders and direct debits.

Reviews:

• Trustpilot: 2.8/5 rating from 1,102 reviews (at time of writing)
• App Store: 4.7 rating from 6,022 reviews (at time of writing)
• Google Play: 4/5 rating from 31,869 reviews (at time of writing)

Number of users: 390,000

Services offered:

• Brokerage
• Insurance
• Saving accounts
• Current accounts
• Visa credit cards
• Prepaid cards

Rebellion Pay 

A great example of this Gen Z focus includes the bank's use of Google Maps 'Location Intelligence'. This allows users to take full advantage of merchant location technologies. This represents a new and significant milestone in digital banking.

Services offered:

• A mobile account with IBAN to send and receive transfers, deposit salary and direct debits
• Free Mastercard with no set-up, maintenance or cash withdrawal fees.
• Ability to receive money through a payment link from anyone regardless of their entity or card
• Consumer loans
• Car loans.

Take a look at our blog about the 10 Best Digital Banks in the UK, for more examples of great fintech innovation.