Internet banking, neo-banking… how to choose the right dematerialized bank

A traditional bank with a branch opened during your studies, consultants that change regularly, and rates often too high for your finances… In short, dad’s bank is not for you! But you need an account and banking services. Modern!

Criterias of choice

First, determine your needs. To do this, think about what services you need: if you often travel abroad, an international card is a must. But also think about your cash flow: if your “extra work” is paid by checks, you should be able to cash them out.

Your financial situation is also a key element. If you are not very careful with your budget (of course, too limited), you run the risk of often overspending, which should be allowed by your bank. Would you like to be able to invest your savings and in what types of financial products? They are not all offered by these Internet banks.

Also, even if it is now easier to switch banks, you should consider your mid-term projects and see if your institution can support them, such as starting a business or buying property.

It is perhaps more difficult to determine the type of relationship you have with your bank, which is an element of integration: are you autonomous? Would you like to have easy access to an advisor?

Then of course you should compare the cost of different establishments what might fit. Fearing their objectivity, you can turn to online comparators that give you at least the basic types of commissions (account maintenance, card by level, agio, etc.), even if it is difficult to take quality into account. duty.

What type of institution to choose?

Three types of service providers allow you to fully manage your account online or in the app:

online banking, subsidiaries of traditional banking groups (eg Boursorama). As a rule, they have a full range of traditional banking products, often at discounted prices.

neobanks, often tech start-ups that are also licensed as a lending institution that can have savings and loan products. They may or may not be in the orbit of traditional banks (eg MyFrenchBank) or not (eg Revolut). Their prices are often very attractive, at least for the basic version. Beware, however, of some costs (such as the hype), which can be high.

other fintechs, which are often only payment institutions (such as Nickel) and often only offer an account and card. Their prices are often very low.

You can also explore offers for studentsdiscount packages, traditional banks…whose online services are becoming more efficient (the COVID pandemic has accelerated this development).

Our advice

– Select an ACPR approved institution, either directly or through mutual recognition within the European Union. You risk less and are better protected in the event of a dispute.

– The lender can no longer opt out of the European IBAN, so you can choose across Europe.

– The sustainability of some recent establishments is not guaranteed and should be expected to regroup or disappear.

– And beware of scammers! An advertisement for a high-paying checking account held by an unknown institution, especially in a country outside the European Union, should be skipped!

Article contributed by Lafinancepourtous.com: an educational site about money and finance.