The emergence of challenger banks over the past decade has not only given consumers more choice, but it’s also fundamentally reshaped the financial ecosystem and driven incumbents to innovate. And unlike conventional banks that rely on their reputation to retain and attract new customers, these new digital banks embrace new financial technology to reduce costs and better meet customer needs. As much as Bunq’s technology is essential and built to offer instant solutions, having a mindset geared toward meeting consumer wants and needs is what sets the neobank apart from other players in the space. Available in 30 markets across the European Economic Area (EEA), the neobank received a full banking license from the Dutch Central Bank (DNB) in 2014 — German rival N26 is currently the only other European player with a full banking license — and allows users to open a personal or business bank account in about five minutes, with a 30-day trial period to test the product.
The Amsterdam-based digital bank announced that they had reached 1 billion euros ($1.11 billion) in user deposits since launch in 2012, which was followed by a mega $228 million raise at a $1.9 billion valuation in July after being a bootstrapped company since its launch in 2012. Bunq has expanded beyond basic banking services into different verticals, including partnering with Dutch lender Tulp to offer mortgages to customers. Bunq now offers a bank mortgage solution that allows customers to have their mortgage application reviewed within 24 hours, making the complex process less stressful and more attractive for customers who are purchasing a home for the first time. The Dutch FinTech has also ventured into the digital wealth space, recently launching a new feature in partnership with Luxembourg-based investment firm Birdee that will allow customers to invest their cash in a range of socially and environmentally responsible companies via three diversified portfolios, depending on their risk appetite.