Before talking about the Best Neobanks in 2021, let's explore what is a Neobank. In simple language, Neobanks are online financial institutions that are similar to banks. Neobank is a digital bank with no branches and is not physically present at a particular location. Neobank offers you limited facilities compared to your traditional banks, but they propose a higher interest rate than your average rates and lower fees.
Neobanks are also referred to as fintech farms that provide digital and mobile-first financial solutions payments, invoicing software, money lending, and much more. Also, they don't have a bank license, but it counts on bank companions that provide similar services.
Best Neobanks that you must know in 2021
If you have landed here, you might be looking for the best Neobanks. Have a look at the top listed Neobanks in the world. Read on for more:
Chime is a US-based Neobank and ranked as the most valued bank at US $ 14.5 billion. Chime does not charge any fee for their services, absolutely free financial services, which means no monthly fee, transaction fee, money pass, and visa plus alliance ATM through a mobile app. The best feature which Chime offers is checking accounts with no minimum balance; other than that, it provides you with an automatic saving feature. In addition, it gives you a 0.50% annual percentage yield(APY).
As per the data, Varo had been ranked third amongst the major neobanks, just behind Chime and simple. It has made its position as the first neobank to receive the national bank charter ( an independent charter).
Additionally, it offers to its customers the following features:
No minimum balance required to open an account.
Customers get paid up two days early so that now they do not have to wait until Friday
Varo advance offers you instant cash up to $100
Varo offers one of the best interest rates on your money; with direct deposits, it provides up to 3% annual percentage yield on balance as low as a penny
It also gives access to exclusive offers and cashback.
This new bank started up with a value of $1 billion, making its way to the elite unicorn club. It is known for its commitment to help with urgent financial issues. It has gained more than 7 million members and counting. Dave Neobank offers some most unique features, including:
Giving advances in your pending paychecks with zero interest rate and no credit check.
It enables you to build up a credit history and get advances up to $200 without paying any fee or initial security charge.
Nubank is a Brazil-based bank and is the largest fintech in Latin America, Valued at US $ 10 billion. It was launched in 2018, and after launching its new credit card design, it was successfully positioned in the Guinness Book Of Records for developing the biggest unboxing around the world.
It is a modern, simple and free bank whose motive is to fulfill its customer's needs efficiently. The bank provides you with Nuconta, a digital account, credit card, and it does not charge a single penny or fee. Nubank has about 30 million customers across Brazil as well as Mexico.
Monzo is one of the first IT startups in Europe, and It has also made its way to be on the list of the few banks holding a bank license that is available only in the United Kingdom and Australia. Some notable benefits of Monzo include:
It will provide up to a 0.45% interest rate on your savings.
You can pay direct debits through Monzo neobank.
You can set up budgets for what you tend to spend, and Monzo will notify you every time you exceed the setup budget limit.
Monzo does not charge any additional fee for spending abroad.
Tinkoff is a Russian-based digital bank that provides its services to about 12 million customers. Entrepreneur Oleg Tinkoff founded Tinkoff credit systems in 2006 after working under consultants from Boston consulting group to make sure if the digital bank or bank without any branches or physical appearance could work in Russia or not.
So let's check out what it offers? Tinkoff's fintech ecosystem provides you with the best financial and lifestyle services for individuals and businesses through the mobile app and web interface. In addition, the Tinkoff services also include daily banking services, savings and investments, real estate, insurance, family banking, and much more.
Revolut is a British fintech company whose headquarter is located in London offering banking services which include:
EUR bank accounts
GBP bank accounts
Debit cards
Stock trading
fee-free currency exchange
cryptocurrency exchange
peer to peer payments
Other than that, it is the fastest-growing Neobank in the US. It guarantees its security as a metropolitan commercial bank and holds FDIC insures the funds for up to $250,000
SoFi is a US-based developer of a digital finance lending platform that offers numerous refinancing loans. It is known for being easily accessible and manageable anytime-anywhere in terms of money. Moreover, it assures you to protect your money by two-factor authentication, including fingerprint recognition through the SoFi app.
Thus, you can update and edit your password or information anytime. Now, let's have a look at the services it offers to its customers:
Online Banking
Personal Management
Mortgage Management
Wealth Management
It was one of the significant neobank projects of Europe, which was announced in 2020 to expand it to South America. N26 has gained more than 1 billion euro in client funds that is entirely proof of the trust that clients tend to put in N26. Its mobile app is a highly convenient and easy app to use. It provides you with detailed statements of the amount you have spent or received and keeps track of your money. Moreover, it also offers a virtual debit Mastercard to pay in stores, online, and apps.
C6bank is also a trustworthy and known neobank. C6 bank has successfully raised a total of $268.1 million in funding over two rounds. A customers choice for this neobank becomes worth it due to the beautiful features that it provides:
This digital accounts would cost you nothing; that is, it has a low maintenance cost
Cash can be quickly withdrawn at any Banco24horas cashier
It provides 24/7 services along with in-app chat.
You can also invest in fixed and variable income with zero brokerage and custody fees.
You are allowed to accumulate points without spending on monthly expenses.
The Bottom line
Neobanking has recently gathered a lot of popularity in the fintech community. There are on average 39 million users globally. People's increased interest in Neobanks is due to the fantastic route of profitability. Hope the above-mentioned list helped you to find the right Neobank in 2021. Do share your experience by writing to us at ocode@digitalstrategyinstitute.org