Number of customers at European app-only banks in 2022

In February 2018, the London based company Revolut announced that they had hit 1.5 million customers, a figure that has grown to 25 million as of November 2022. The incredible acceleration of new customers joining these digital-only banks has been mirrored by the Berlin-based N26 who have seen their customer base reaching eight million as of October 2022, and fellow London-headquartered Monzo. By analyzing app downloads of Europe's best performing neobanks, Statista has forecast the growth of digital challenger banks into 2022.

What is an online bank?

Compared to traditional banks, which nowadays also provides extensive mobile banking services, online banks, also known as digital challenger banks, disruptor banks, or neobanks, are app-based banks without physical bank branches. Many customers see the benefits of these banks, such as lower fees, better customer service, and higher accessibility, which is possible to provide thanks to lower operational costs.

Funding

The founder and CEO of N26 - Valentin Stalf - announced that the company’s Series D funding would be used to increase customer numbers to 5 million by the beginning of 2020, a target that they hit as of the 23rd of January 2020. The extended round in funding in July 2019 has meant that the Berlin based disruptor has become the second most funded online bank in Europe. The speed in which, fintech firms and disruptor banks have risen has seen several them reach unicorn status.