Neo-banks, online banks, traditional banks: that's a lot of options.
But the question is: which bank is best suited to my needs?
In this article we have listed the pros and cons of each option, so that you can determine which one is best for you.
Understanding the difference between each bank
But before we start, we'll explain what a neobank, an online bank and a traditional bank are, so that you can understand the difference between each of them.
Neo-banks: this is a 100% mobile bankavailable through an application (some also have a computer version). They do not have physical bank branches, which allows them to reduce costs, and thus offer financial services and products at low prices, or even free. Examples of neobanks: N26 or Revolut.
Online banks: not to be confused with neobanks! The online bank is a subsidiary, and online version, of a traditional bank. For the same reason as neobanks, as they have no physical branches, online banks offer lower prices than traditional banks. Examples of online banks: Hello Bank from BNP Paribas, or Boursorama from Société Générale.
Traditional banks: the term "traditional" was used with the arrival of the new banks (online and neo-banks), to designate those with physical bank branches. Being so-called "physical" banks, the cost of their products and services are therefore higher. Examples of traditional banks: BNP Paribas, Crédit Agricole, Société Générale, LCL...
Pros and cons
Now that you understand the difference between each type of bank, it's time to get down to business and evaluate the pros and cons of each option:
In conclusion, we recommend the traditional bank if :
You want to have all your banking services and products under one roof.
You need a dedicated advisor to guide you, answer your questions and discuss your needs.
Human contact is important to you and reassures you.
You have negotiated benefits at your current bank that allow you to access banking services/products at a lower cost.
Smarto plan: if you open an account with BNP Paribas via this link, you get €80, and a free card for 3 years!
Online banking is for you if :
You want to pay less than in a traditional bank.
You don't need a dedicated advisor.
You are comfortable with 100% digital, the absence of human contact does not bother you.
You don't have great needs in terms of banking products.
We recommend neobanks if :
You want to open an account simply, quickly and free of charge.
You like immediacy: transfers, payments, you want everything done in the minute.
You like the fact that everything can be managed in one application.
You don't mind taking out a loan, or whatever, with another bank.
You travel a lot and you don't want to pay extra costs abroad (up to a certain amount).
You're keen on the new services they offer: cryptocurrency, investment etc.
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