Internet banking, neo-banking … how to choose a dematerialized bank

A traditional bank with a branch that works during training, advisors who change regularly, and often inflated rates for your finances … In short, Dad’s bank is not for you! But you need an account and banking services. Modern!

Selection criteria

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

Your financial situation is also a key element. If you are not very careful about your budget – too limited, of course – you run the risk of being listed often, which should be authorized by your bank. Would you like to be able to invest your savings and in what types of financial products? Not all of them are offered these online banks.

In addition, even if it is easier to change the bank now, you should consider your medium-term projects and see if your institution can support them, such as starting a business or buying real estate.

It may be more difficult to determine whether your type of relationship with your bank is an element of integration: are you autonomous? Would you like easy access to the advisor?

Then, of course, it is necessary compare the costs of different institutions which may fit. Beware of their objectivity, you can consult online comparators, which give you at least the basic types of commissions (account maintenance, level card, agio, etc.), even if quality is difficult to consider. duty.

What type of institution to choose?

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

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

neobanks, often technology startups that are also licensed as a lending institution that can have savings and loan products. They may be in the orbit of traditional banks (for example: MyFrenchBank) or not (for example, Revolut). Their prices are often very attractive, at least for the base version. However, beware of certain costs (such as agios), which can be high.

other fintechs, which are often only payment institutions (for example, Nickel) and often offer only an account and a card. Prices for them are often very low.

You can also explore suggestions dedicated to studentsoften preferential packages, traditional banks whose online services are becoming more efficient (the COVID pandemic has accelerated this development).

Our tips

– Select an ACPR-approved institution directly or by mutual recognition within the European Union. You take less risk and will be better protected in case of a dispute.

– The creditor can no longer give up the European IBAN, so you can choose across Europe.

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

– And beware of scammers! Ads about high-paying current account in an unknown institution, especially in a country outside the European Union, should be missed!

The article is offered by Lafinancepourtous.com: an educational site about money and finance.