In a world that’s becoming increasingly borderless, it makes sense that our banking habits have followed suit with the introduction of mobile-only, or challenger, banks.
People value convenience above all else, and they don’t have the time or patience to visit the bank just to wait in line or make an appointment to handle their financial affairs. Digital banks have solved this age-old problem by simply eliminating the need to visit a branch altogether. With online mobile-app banking, you simply access and handle your money at any time, from anywhere, eliminating the stress and hassle of managing your money on the go.
Read our challenger bank comparison below to see which mobile-only bank is right for you. Whether you need a digital bank to help manage your personal finances or a multi-currency account for business, our challenger bank comparison makes selecting the perfect card for you easy and hassle-free. Contact Headway Wealth with any questions and call us to see how we can help protect and grow your money today.*
Benefits of Mobile-Only Banks
Digital banks offer the following perks:
- You don’t need to visit a physical branch to handle your finances. Your bank is 100% app-based and can be accessed 24/7, meaning you can check your account balance, transfer money, make payments and cancel debit/credit cards on the spot whenever you need.
- Mobile-only bank apps are compatible with Android and IOS devices.
- You can download a digital bank app and open a current account within minutes all without having to complete extensive paperwork. Just prove your identity, put money into your new account and you’re good to go!
- Digital banks offer current accounts, insurance policies, loans and debit/credit cards at cheaper rates than traditional banks. They also tend to offer lower ATM withdrawal fees, currency exchange/money transfer fees and foreign payment fees to help you travel easier and cheaper.
- You can quickly cancel your credit/debit card if it becomes lost or if you suspect fraudulent behavior.
- You’ll receive notifications in real-time every time a transaction is processed and your account balance becomes low.
- Most challenger banks are protected by the Financial Services Compensation Scheme (FSCS), which means that you’re ensured up £85,000 should your bank go under.
- Challenger banks offer different layers of security to help keep your personal and financial information safe. These include 2 Factor Authentication (2FA), Secure Socket Layer (SSL) encryption and firewall protection.
- Multi-currency digital banks can help you send and receive money from different countries without having to pay a substantial fee.
Digital Banks Comparison Chart
Please note that every mobile-only bank below has no monthly fees or charges associated with opening an account. Regardless of which digital bank you opt for below, you’ll be issued a Mastercard debit/credit card in the mail to help you bank easier on the go. All but Curve are compatible with Apple and Google pay, and all information was taken from BrokerChooser’s complete comparison guide to help you make the right decision for you.
Please note: N26 has just announced that it will be closing accounts for UK customers on April 15, 2020, due to Brexit complications. Learn what this means for current account holders here.
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| Countries You Can Open an Account In | 22 | 1 | 31 | 33 | 1 | 31 | 144 |
| Amount of Currencies You Can Hold in Your Account | 2 | 1 | 2 | 24 | 1 | 26 | 44 |
| ATM Fees | Free in own currency, 1.7% in other currencies | Free | €200/£200 free, 2% after | €200/£200 /month free
2% after that |
Free in the UK
£200/month free abroad 3% after that |
Domestic (same currency): 10 free withdrawals per month, €/£0.50 after
If payment card is a credit card, free up to £/€200 per month, 2% after Foreign ATM withdrawals (in currency other than that of payment card): €/£200 free, £2 or 2% after |
£200/month free, 2% after
plus currency exchange fee (0.35-2.00%) for foreign currencies |
| Overdrafts Possible | ✔️ | ✔️ | ❌ | ❌ | ✔️ | ❌ | ❌ |
| International Transfer Fee | €0.5-3.0 | £0.30-5.50 | Free | Free | €0.5-3.0 | N/A | €0.5-2.0 |
| Currency Exchange Fee | 0.35-2.00% | 0.40% | 2%, with €2/£2 minimum charge | 0.5-2.0% on weekends
€6,000/£5,000 /month free, 0.5% above that |
0.35-2.00% | €/£500 spending free, 2% after
+0.5-1.5% weekend surcharge |
0.35-2.00% |
| Cryptocurrency Trading | ❌ | ❌ | ❌ | ✔️ | ❌ | ❌ | ❌ |
| Accept Cheques | ❌ | ✔️ | ❌ | ❌ | ✔️ | N/A | ❌ |
| Budgeting Tools | ❌ | ❌ | ✔️ | ✔️ | ✔️ | ❌ | ❌ |
| Smart Savings (Round up purchase to nearest euro or pound to help you save) | ❌ | ✔️ | ❌ | ✔️ | ✔️ | ❌ | ❌ |
| Interest Paid on Savings | ✔️ | ✔️ | ❌ | ❌ | ✔️ | ❌ | ❌ |
| 3D Secure Online Payments | ✔️ | ❌ | ✔️ | ✔️ | ✔️ | ❌ | ✔️ |
| Apply for Personal Loans | ✔️ | ✔️ | ❌ | ✔️ | ❌ | ❌ | ❌ |
| Customer Service Score (Out of 5) | 3 | 4 | 3 | 4 | 5 | 3 | 5 |
| License Company Operates Under | Banking | Banking | E-Money | Banking & E-Money | Banking | E-Money | E-Money |
| Bank Which Holds Your Money | N/A | N/A | Prepay Technologies Ltd. | Barclays, Lloyds | N/A | N/A | Barclays |
| Deposit Guarantee | €100,000 | £85,000 | None | None | £85,000 | None | None |
| Trustpilot Rating (Out of 5) | 4 | 4.5 | 4.5 | 4.5 | 4.5 | 4.3 | 4.6 |
Comparison Summary
Still not sure which challenger bank is right for you? Here’s another way to breakdown your options.
Revolut
- Offers the lowest fees
N26
- Ideal for those who want to hold a bank account in an EU country
Starling
- Ideal for everyday banking and those who travel a lot
Transferwise
- Ideal for those who do business in different currencies
- This mobile-only app can hold the most currencies
Curve
- Ideal for those who want to make a variety of transactions using one card
Monzo & Monese
- Ideal for everyday banking
Ready to say goodbye to traditional banking? Download your digital bank of choice and speak with a Headway Wealth advisor today. We can help you protect your money and invest wisely in your future.*
*Headway Wealth Limited is authorised and regulated by the Financial Conduct Authority
**The value of investments can go down as well as up.
