Fintech and online banking: neobanks, accounts and security

Informatec Digital » Resources » Fintech and online banking: neobanks, accounts and security

Online banking and fintech have forever changed the way we manage our money . In just a few years, we've gone from queuing at a branch for any transaction to opening accounts, investing, or purchasing insurance from our mobile phones in a matter of minutes. This digital revolution has given rise to new players, such as tech startups , neobanks, and pure digital banks, which are making a strong impact in Spain and throughout Europe.

In this landscape, names like Revolut, N26, Monzo, EVO Banco, and Imagin emerge , alongside lesser-known but powerful players such as Bunq, Qonto, Níquel, and B100. They all compete to offer better apps, lower fees, and advanced features like cashback, automatic micro-savings, cryptocurrencies, and accounting tools for businesses. Below, you'll find a comprehensive guide to understanding what fintech is in online banking, how to distinguish between a bank and a neobank, and which are the most prominent projects currently operating in the market.

What is online fintech banking and why is it revolutionizing everything?

When we talk about fintech applied to online banking, we're referring to entities that combine traditional financial services (accounts, cards, loans, insurance, or investments) with a powerful technological layer. Unlike traditional banks, their relationship with the customer is almost exclusively digital: mobile app, website, and remote support.

These companies leverage technology to simplify processes, reduce costs, and personalize the user experience . Instead of a vast network of offices, they focus their efforts on developing robust applications, fast payment systems, online identity verification, and data analytics tools that allow them to better understand their customers.

Thanks to this technological investment, digital banking has experienced spectacular growth in Europe in recent years . Neobanks like Revolut grew from 1,5 million to 10 million users in just two years, while N26 also doubled its customer base to over five million in the same period. Today, many of these players boast tens of millions of users worldwide.

This transformation doesn't just affect new players; even traditional banks have had to get their act together and launch digital brands or 100% online divisions to avoid losing ground to fintech companies. In this new environment, security and privacy , ease of use, and competitive fees have become essential requirements for success.

How to distinguish between a traditional bank, a digital bank, and a neobank

One of the biggest points of confusion for many users is knowing whether the entity they are dealing with is a licensed bank, a neobank, or simply a financial app , and whether it complies with regulations such as the NIS2 directive.

Generally speaking, a bank (whether traditional or digital) is an entity that holds a full banking license and is supervised by a regulator (in Spain, the Bank of Spain; in other European countries, their central bank). This means it can accept deposits, grant loans, and your funds are usually covered by a deposit guarantee scheme up to a certain limit.

Neobanks, on the other hand, can operate with their own banking license or rely on third-party banks and electronic money institutions . Many European neobanks have opted for a full license (such as N26 or Bunq), while others function as intermediaries, relying on partner banks to hold balances and issue cards.

Unlike traditional banks, these digital players offer a completely online and mobile-centric experience . Their apps allow users to open accounts in minutes, receive real-time notifications, create savings sub-accounts, automate rules, and make international payments much more efficiently than traditional financial institutions.

In short: not everything that looks like a bank on your mobile phone is actually a bank from a regulatory standpoint . Before making a decision, it's advisable to check if it has a banking license, if it operates as an electronic money institution, who protects your deposits, and in which country it is supervised.

Imagine and the mixed model of financial and non-financial services

Within the Spanish online banking sector , Imagin stands out as a digital bank, powered by CaixaBank , which combines traditional financial services with a broader value proposition based on content and non-financial benefits. This is a clear example of how a traditional institution can create a 100% digital brand to attract a younger audience.

On one hand, ImaginersGen, SA is the company that markets non-financial services under the Imagin brand. This includes everything from content and experiences to discounts and offers at partner businesses, all accessed directly through the app without the need for traditional banking services.

On the other hand, the strictly banking side is structured through ImaginBank, a CaixaBank brand . In this arrangement, ImaginersGen acts as an agent, while CaixaBank and other entities within the group actually provide the various products (accounts, cards, insurance, etc.).

Imagin cards are issued by CaixaBank Payments & Consumer, EFC, EP, SAU (CPC), a hybrid payment institution headquartered at Avenida de Manoteras nº 20, Edificio París (28050 Madrid). Credit cards are subject to prior approval by CPC. Funds held by customers for payment services are protected by deposit in a separate account at CaixaBank, SA , providing an additional layer of security.

Regarding current accounts , the entity behind them is CaixaBank, SA, with tax identification number A08663619 and registered with the Bank of Spain under number 2100, guaranteeing that it is a fully supervised bank. This backing provides peace of mind to users seeking the convenience of a modern app without sacrificing the stability of a large bank.

In the insurance sector, Imagin offers various policies managed by several entities within the group: VidaCaixa, SAU de Seguros y Reaseguros for life insurance and SegurCaixa Adeslas, SA de Seguros y Reaseguros for non-life insurance . CaixaBank, SA acts as the exclusive bancassurance operator for VidaCaixa and is authorized for SegurCaixa Adeslas, with code OE0003 in the Register of Insurance and Reinsurance Distributors of the DGSFP and with the corresponding professional liability insurance.

CaixaBank, SA 's registered office is located at Calle Pintor Sorolla 2-4, 46002 Valencia , and the entity operates under current Spanish regulations. Imagin exemplifies how a large bank can combine traditional financial products with a fresh, digital brand that fosters loyalty among young people through experiences, cashback, and advanced features.

Neobanks operating in Spain and their key characteristics

The Spanish ecosystem of neobanks and online fintech banking has become very diverse. Large international players coexist with local projects specializing in specific niches. Each brings distinctive functionalities, different business models, and value propositions highly focused on user experience.

Some focus on savings and account profitability, others on expense management, cashback, or international payments , and several have targeted specific groups such as freelancers, SMEs, or the migrant population. Below is a review of the main neobanks operating in Spain and the features that make them stand out.

N26: Mobile banking with an international focus

N26 is a German fintech company founded in 2013 that initially focused on users who needed to manage their money in more than one country. Since then, it has expanded its range of products and services, now offering Spanish IBANs and reward systems, such as cashback, to help freelancers save on social security contributions.

Its mobile app includes spending categorization tools that allow you to see exactly where your money is going . Thanks to this clear and dynamic view of your budget, it has become a favorite among frequent travelers and those who live in multiple countries.

Among its standout features is the ability to schedule payments and view upcoming direct debits and scheduled transfers . This helps anticipate expenses and avoid surprises at the end of the month, which is especially useful when managing multiple accounts or services.

Another of its major advantages is the shared "Spaces ," sub-accounts that allow you to separate savings for different goals and view all transactions from the last six months. This structure facilitates financial planning and allows you to save collaboratively with family members or roommates.

In addition, N26 offers automatic savings rules such as scheduled monthly contributions or rounding up purchases to allocate the extra to a digital piggy bank. These small automations help create a savings habit without the user having to constantly monitor it.

Revolut: a financial super app with a global focus

Revolut is a British neobank that has surpassed 3 million customers in Spain and over 40 million globally . Its strength lies in combining a multi-currency account, cards, and business services with more advanced features such as cryptocurrency trading, insurance, and even mobile phone services.

One of their flagship tools is the cashback program , which returns a percentage of the amount of eligible card purchases. The reward, they explain, is calculated on the total amount and rounded to the nearest whole number by default, resulting in small, consistent cashbacks for the user.

Revolut has also been positioning itself as a provider of credit products . The addition of a second credit card in Spain strengthens its offering and promises to further boost its growth in the local market, where it already competes head-to-head with traditional banks and card issuers.

Bnext: account with Spanish IBAN but without its own banking license

Bnext is a Spanish fintech company that, although it doesn't have a banking license , offers its customers a Spanish IBAN to facilitate everyday transactions. This is especially practical for users looking for the convenience of a local account without changing their main bank.

Despite receiving a sanction from the Bank of Spain for failing to promptly report significant changes in its shareholding , the company maintains a notable volume of business and has continued to develop its platform.

Their core product is a Payment Account with no opening fee , which allows users to set up direct deposits for salaries and other income, as well as regular bills. In addition, they offer competitive international transfer rates, a feature highly valued by users who send money abroad.

The account is complemented by a free debit card with no maintenance fees , making it an attractive option for those who want to try digital banking without incurring recurring costs.

B100: profitability linked to health and sustainability

B100 is the neobank launched by ABANCA that has positioned itself among those offering the highest returns to its customers. Its proposition is based on a highly original concept: combining money, health, and environmental responsibility in a single financial product.

The core of this model is the Health Account , a savings account with a very high return in its free version, clearly superior to that of many competitors. Its unique feature is that money can only be added to this account through the user's physical activity.

To deposit funds into the Health Account, you need to walk or run until you reach a certain number of steps , which then translate into contributions to the account. This encourages physical exercise while simultaneously boosting savings, creating a very attractive double incentive.

B100 has also launched a free debit card called Pay to Save , which is linked to initiatives fighting marine pollution. Every payment made by the user contributes to ocean cleanup projects, positioning this neobank as one of the most active in terms of environmental impact.

Íkualo: banking for migrants

Íkualo is a recently established neobank whose main objective is to include migrants who only have a passport in the financial system . This group often faces many obstacles in opening accounts at traditional banks due to a lack of local credit history or additional documentation.

Íkualo's proposal involves allowing users to open an account by presenting a passport and a receipt or proof of address , completing the process with a video call to verify identity. Based on this information, the system generates a credit score.

To achieve this, the organization makes intensive use of artificial intelligence , machine learning, and big data to assess the risk of clients who don't fit traditional models. This allows it to offer basic financial products to people who would otherwise be excluded from the banking system.

Nickel: local banking through tobacconists and lottery outlets

Nickel is the digital bank of the BNP Paribas group that has opted for a very unique model: operating primarily through tobacconists and lottery outlets in neighborhoods and sparsely populated areas. Thanks to this approach, it already has some 2.000 points of sale in Spain.

This physical deployment makes Níquel one of the entities with the most cash access points in the Spanish market , making it especially attractive for people who value having a nearby place to withdraw money without having to travel to a bank branch.

Their goal is to reach around 600.000 accounts opened in the next year , taking advantage of bank branch closures in many towns. The service costs €25 per year and includes a checking account, a Mastercard debit card, and the possibility of turning your local tobacconist into a kind of "neighborhood banker."

Nickel complements its physical network with an app and website for managing money , as well as a telephone support service from Seville and Madrid, which provides extra proximity and confidence to less digitally savvy users.

EVO Bank: the digital branch of a traditional bank

EVO Banco was founded in 2012 with a distinctly disruptive approach and, since 2019, has established itself as Bankinter's fully digital branch . Over the years, it has received numerous awards for its online banking and its commitment to simple and transparent products.

One of its most representative tools is the Smart Piggy Bank , a fully automated and highly configurable micro-savings system. Users can activate rules such as rounding up purchases, making regular contributions, or using gamification to effortlessly increase their savings.

EVO also offers smart cashback, allowing you to save up to 8% on every purchase at participating stores. This discount is combined with existing promotions or sales, making it even more appealing to customers.

Regarding access to cash, EVO boasts over 18.000 free ATMs in Spain and commission-free debit card withdrawals at ATMs worldwide, a significant advantage for frequent travelers and people who move around a lot for work.

Bunq: a digital bank with a nomadic and green approach

Bunq is a Dutch digital bank that has increased its customer deposit volume sevenfold in a single year, positioning itself as the second largest digital bank in Europe. It arrived in Spain in 2021 and recently launched a highly competitive savings account with high interest rates.

Its founder, Ali Niknam, points out that a large part of its customers are digital nomads and travelers who are looking for the best possible mobile banking experience and want to avoid the typical frictions of many traditional entities.

In addition to its financial services, Bunq has built a strategy focused on sustainability , investing in reforestation and projects with a positive impact on local communities and the environment. This reinforces its position as a green and responsible bank.

Qonto: the fintech option for SMEs and freelancers

Qonto has positioned itself as a leading digital banking provider for SMEs, freelancers, and startups . Its offering focuses on simplifying business banking and accounting, processes that often consume significant time and resources.

Among its most useful features is the automatic matching of receipts and invoices with bank transactions , as well as the ability to add custom labels and notes. This allows for clear and efficient financial tracking without relying on endless spreadsheets.

Qonto organizes its offering into four customer segments : startup entrepreneurs, established freelancers, micro-businesses with 1 to 9 employees, and SMEs with up to 250 employees. Each segment has plans and features tailored to its needs.

Imagine: building loyalty with new generations

Beyond its corporate structure, Imagin operates as a digital bank designed for young people and teenagers . One of its main selling points is the ability to use Bizum even if you're under 18, which has boosted its popularity among younger users.

Upon turning 18, users automatically become adult Imagin customers , without needing to change apps or financial institutions. This mechanism helps CaixaBank lower the average age of its customer base and build loyalty with new generations from a very early age.

Imagin also stands out for its cashback module with exclusive discounts on travel and hotels, restaurants, food, fashion, and beauty. Using the free card unlocks various rewards, adding a fun and advantageous element to your relationship with the bank.

All of this makes Imagin a good example of how a traditional bank can launch a fresh digital brand to compete with pure neobanks in the area of ​​user experience and benefits for young customers.

The best digital banks in Europe beyond Spain

The fintech wave isn't limited to the Spanish market; dozens of neobanks and challenger banks have emerged across Europe , offering services on a multinational scale. Choosing between them isn't easy, because most have very specific offerings, ranging from minimalist free accounts to financial super apps packed with added services.

Rather than focusing solely on the number of customers or revenue, many analysts recommend paying attention to unique features, the level of innovation, and the reputation a company has in the market. In this context, some names stand out due to their size, their focus, or their product quality.

Revolut as a European super-leader

Revolut, with over 25 million users worldwide , has established itself as one of Europe's largest digital banks. In addition to its strengths in payments and currency exchange, it offers personal loans, fee-free international transfers on select plans, travel and mobile insurance, and even cryptocurrency trading.

Its success is largely explained by very low fees and an enormous capacity for rapid innovation . Revolut has earned a reputation for putting the customer first, quickly adjusting app features and continuously launching new services to adapt to the needs of its community.

Valyuz: an electronic money institution with a business focus

Valyuz, registered and regulated in Lithuania, is one of the most recognized electronic money institutions in its sector. It is designed primarily for customers who value fast and easy-to-use applications and who need to transact with multiple currencies and countries.

Its advantages include mobile apps for iOS and Android , bank transfers in 35 currencies to over 200 countries, and the option to obtain a prepaid Mastercard. It also allows currency exchange at competitive rates and offers options for multiple signatories on the same account, a key feature for businesses.

Valyuz also emphasizes secure login technology and highly regarded customer service, two factors that contribute to its positive image among internationally operating businesses and professionals.

Monzo: a digital giant from the UK

Monzo is one of the leading names in British digital banking , with over seven million customers. Although headquartered in the UK, the Mastercard linked to its account allows users to make purchases wherever this payment method is accepted, often without incurring additional fees for foreign transactions.

Their app lets you set up budgets, make direct debits, earn interest on savings, and organize your money into separate "pots." This structure helps you better manage your monthly budget and allocate specific amounts to particular goals.

Monzo has also become popular for a feature that advances salaries one day early to those who have their payroll deposited with the bank, a feature highly valued by those who need to have their money available as soon as possible.

Starling Bank: the favorite of British digital banking

Starling Bank, also from the UK, has earned the title of "favorite" within the digital banking ecosystem . Its personal account was awarded Best British Bank and Best Current Account in 2019, and its business account has also garnered accolades.

Founded in 2014 by banker Anne Boden, Starling is generally highly praised by analysts and experts , both for its business model and its strong customer focus. Its app is known for providing a clear overview of expenses and a suite of features designed for everyday use.

N26: Pan-European presence with full licensing

In addition to its operations in Spain, N26 is a fully licensed bank based in Germany and one of the leading players in the European digital banking sector, with over eight million users. It offers personal and business accounts with no hidden fees and deposit insurance up to €100.000.

Its "Spaces" feature for creating specific sub-accounts has been one of the most imitated in the industry. It allows users to set financial goals, allocate money for them, and easily track progress, all from the same app.

Hello Bank: BNP Paribas' digital bet

Hello Bank (often known as Hello Bank! or Hola Bank depending on the market) is BNP Paribas' digital banking brand , launched in 2013 to operate entirely online. It has been recognized for its ability to integrate the latest technological innovations into an app geared towards time-poor individuals.

Their basic current account isn't free, but for just one euro a month it includes online and mobile banking, telephone banking, a debit card, and the ability to set up standing orders and direct debits. They also offer investment and insurance services.

Hello Bank allows you to trade securities, purchase insurance, open savings and checking accounts , and access Visa credit cards or prepaid cards. It thus positions itself as a solid digital alternative, backed by a major European banking group.

Rebellion: Spanish neobank focused on Generation Z

Rebellion is a Spanish neobank focused on users between 16 and 25 years old . Although its customer base (around 280.000 users) is smaller than that of giants like Revolut or N26, it has managed to stand out for its specialization in Generation Z.

It was the first challenger bank in Spain to obtain a banking license and offer IBANs to its customers, which allowed it to differentiate itself from the start. Since then, it has worked to stay ahead of the curve in features that appeal to younger customers.

A good example is the use of Google Maps' "Location Intelligence" to take full advantage of location technologies for businesses. This opens the door to more personalized experiences, spending recommendations, budget control by area, and new ways to interact with the physical environment from within the app.

What to consider when choosing a digital bank

When choosing a digital bank or neobank, it's best to look beyond the app's aesthetics or a special offer. There are three key factors you should always consider: security, fees, and ease of use . Beyond that, reputation, deposit protection, and customer support come into play.

In terms of security , it is crucial to verify that the entity has the necessary licenses and authorizations to operate in the country where you are located, and that it applies robust login processes and zero trust approaches : two-step authentication, reliable identity verification, data encryption, and advanced anti-fraud systems.

Regarding fees and charges , one of the major advantages of digital banking is that, with lower overhead costs, they often offer reduced or no maintenance fees, better exchange rates, and cheaper cards for international use. Even so, it's advisable to read the fine print: withdrawal limits, currency exchange fees, costs for special transfers, etc.

Practicality is linked to the bank fitting your needs. Does it offer an international debit card? Does it allow personal and business accounts? Does it have an intuitive and stable app? Does it offer features like sub-accounts, budgeting, cashback, tools for freelancers, or integration with accounting software? Choosing a digital bank that suits your profile will make all the difference in your daily life.

In addition to all this, it's worth considering the bank's reputation and customer satisfaction levels . Consulting reviews, awards, or independent reports can help you get a sense of its reliability. And, if it's a fully licensed bank, make sure your deposits are covered by the appropriate deposit guarantee scheme (in the United States, this is the FDIC; in Europe, it's the national scheme of each country).

Examples of profitability and conditions in digital products

Many online banks and fintech companies complement their accounts with deposits, credit cards, or investment funds . These products usually come with representative examples illustrating the APR, nominal interest rate, fees, and bonuses available if you meet certain conditions.

In the case of some fixed-term deposits, the Annual Equivalent Rate (AER) can vary depending on the amount and duration . A typical example would be a 4-month deposit with an AER of around 2,7% if requirements are met, such as direct deposit of salary, pension, or certain recurring income from outside the bank. If these requirements are not met, the AER can drop significantly, and even further if the deposit is closed early.

Longer-term deposits, such as 18-month terms , are also common, with nominal annual interest rates (TIN) around 1,9% and quarterly interest payments. These products typically require minimum deposits (for example, €5.000) and maximum deposits (such as €250.000) and may be linked to opening a fee-free savings account where the interest is paid.

Digital credit cards typically have maximum APRs (Annual Percentage Rates) around 23% and nominal interest rates (NIR) around 21% , but often offer reduced or even zero origination fees for initial purchases made on installment plans. Representative examples show how a €750 purchase over 3 months can have a 0% NIR and 0% APR if the origination fee is zero, while with a fee of €3 or €20 and terms of 3 or 6 months, the effective APR increases even though there is no pure interest.

Some banks offer direct cash bonuses , such as €40 or €500 (gross), if the customer meets minimum spending requirements with the card or sets up direct deposit of their salary for a certain period. It's important to note that these bonuses are considered investment income subject to income tax, typically with an automatic 19% withholding tax by the bank.

Regarding fund investment, many digital banks offer access to actively or passively managed products , detailing regulatory information in documents such as the prospectus or the Investment Information Document (IID). A global all-cap equity fund, for example, may have achieved very high returns in the last year (above the benchmark index), but at the cost of greater volatility and ongoing expenses of around 1,3% per year.

This type of fund is generally recommended for investors with a high risk tolerance and a long-term investment horizon , who understand that past performance is no guarantee of future results and who want to seek alpha relative to a global index. Before making any decisions, it's advisable to analyze the 3-5 year track record, the portfolio's concentration, the main securities in which it invests, and the tracking error relative to the benchmark.

The moral of all these examples is clear: it's essential to carefully read the terms and conditions of each fintech product , understand the difference between nominal interest rate (TIN) and annual percentage rate (APR), and take into account fees, penalties for early termination, and the tax implications of any bonuses. The ease of application offered by online banking shouldn't lead to overlooking these details.

All of the above helps explain why the banking industry has made an irreversible shift towards digitalization . Online banking and fintech options are multiplying, customers are responding with massive user growth, and traditional banks are being forced to innovate. At the same time, highly specialized offerings are emerging for digital nomads, young people, SMEs, and traditionally excluded groups, expanding the alternatives available to each type of user. In this environment, being well-informed, comparing, and choosing the institution that best suits your needs is key to fully leveraging the fintech revolution in online banking.