The world is going through a digital transition. Virtually all sectors are being digitized. Robinhood has changed how people invest, Uber has changed how people travel, and Netflix has changed how people watch. The fintech industry is also seeing incredible changes. Goldman Sachs has launched Marcus, its online-only retail bank while Google has received a banking license. In this report, N26 vs Bunq report, we will look at how these companies differ with one other.
What is Online Banking?
The banking sector has been going through significant changes. The traditional approach to banking has always been based on brick and mortar. One had to go to a bank and deposit. Also, one had to go to a bank or an ATM to withdraw funds. As a result, banking was expensive to its customers.
Online banking is changing this. Online-only banks are those that enable people to do banking through a mobile application. In recent years, the number of such banks has been on an upward trend. As a result, many venture firms have made investments in the industry.
Ally Bank is one of the biggest companies in the industry. It is a public company that is valued at more than $12 billion. SoFi is another online finance company that gives out loans and other services to people. It is valued at more than $4.3 billion. Marcus, is an online-only bank founded by Goldman Sachs. The bank has more than $60 billion in assets.
What is N26?
N26 is one of the biggest online-only banks in the world. The bank was started in 2013 by Valentin Stalf and Maximilian Tayenthal in 2013. The company received a banking license from the European Central Bank and Bafin in 2016.
N26 launched its operations in the UK and the US in 2018 and 2019 respectively. Over the years, the company has attracted more than $682 million from venture capitalists and is valued at more than $3.5 billion. The company has more than 5 million customers and is headquartered in Berlin.
Note: N26 announced that it was exiting the UK market because of Brexit.
What is Bunq?
Bunq is an onlinr-only bank started in 2012 by Ali Niknam. The bank received its banking license from the Dutch Central Bank (DNB) in 2014. The company operates in Netherlands, Germany, Austia, Spain, Italy, France, Belgium, and Ireland.
Bunq also offers its services to all countries of the European Union, Norway, and Finland. The company has more than 9.1 million users and has raised more than 44 million euros from venture capital firms. It is valued at more than $1.7 billion,and is headquartered in Amsterdam.
N26 operates a relatively simple banking platform. One can sign up and get an account within five minutes. They are required to provide information like their names, phone numbers, email address, and proof of residence. After signing up, you will receive a bank account number and a debit card. Some of the features of N26 are:
- Free debit card – The bank gives you a free Mastercard debit card whenever you sign-up.
- Easy money transfer – The company has partnered with Transferwise to provide fast international funds transfer.
- N26 Spaces – This is a free sub account that lets you save towards your financial goal.
- Spending dashboard – A dashboard that shows you your spending habits.
- N26 shared spaces – A feature that allows you to share spending with a friend or family member.
- Cashback from multiple online companies.
N26 Types of Accounts
N26 has two main types of bank accounts. It has a personal and a business bank account. On N26 personal bank account, the company has three types of accounts: N26, N26 You, and N26 Metal. On business, it has a N26 Business and N26 Business You.
- N26 – This account has no monthly fees. Users get a free Mastercard, free online payments, up to 5 free ATM withdrawals, a 1.7% fee on foreign currency withdrawals, and 2 sub accounts.
- N26 You – This account charges EUR9.90 per month. Features are the same as those of the previous account. The difference is that you have up to 10 sub-accounts, account sharing, medical insurance when travelling, and flight insurance delay among others.
- N26 Metal – This account gives you a metallic Mastercard debit card. It also offers a number of insurance services.
- N26 Business – This account has no fees and has similar features to the previous ones. It has a 0.1% cashback on all purchases.
- N26 Business You – This charges EUR 9.9 per month. It has same features as the You personal account.
Bunq Unique Features
Bunq is an online bank that offers a number of features.
- Instant payments – The company offers instant payments to various platforms.
- Interest – You earn interest on all your accounts every month.
- Robo investing – You can let the company invest for you.
- Travel coverage – It offers quality travel insurance to customers.
Types of Bunq Bank Accounts
As with N26, Bunq offers both personal and business banking services.
- Personal accounts – This is an account where you can deposit money, withdraw, and spend. This account charges EUR 7.99 per month.
- Joint accounts – This is an account that is shared between two or more people. This one charges EUR 9.99 per month.
- Business accounts – This is an account that is tailored to businesses. This one charges EUR 9.99 per month.
Bunq Green Card
A unique feature that Bunq offers is a Green Card. This is a debit card that rewards you indirectly when you shop. It rewards you by planting a tree whenever you buy something worth EUR 100. The company has partnered with a non-profit organization called Eden Restoration Projects that plants trees in the emerging markets.
Bunq and N26 Revenue Model
Bunq and N26 have a subscription model. As shown above, members of the two banks pay between EUR 7.99 to EUR 9.99 for certain perks. The two companies have also partnered with companies like Transferwise and travel insurance companies.
The banks take a small commission from these partnerships. As with all banks, they also make money by investing in safe financial products like bonds.
Summary: Which is Better Between Bunq and N26?
Generally, if you want an online bank, the two banks are ideal. They offer similar services and products. Their fees are relatively the same as well.
However, we believe that N26 is a slightly better alternative because it is available in the US and the European Union. This can be a plus if you travel regularly between the two sides of the Atlantic. N26 also has more services than Bunq.