November 3, 2024
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Many start-ups are vying for new financial technology (fintech) customers. Challenger banks and money transfer companies seek to supplant legacy banks and corporations that have been around for decades. They attempt this by offering efficient, low-fee, and transparent mobile-first applications. Fintechs typically market to individuals and business customers who travel frequently, live abroad, sell products globally, or freelance.
Two innovative fintechs and banking apps that regularly make headlines are Bunq and Revolut. Let’s review and compare their products, services, and plans for EU customers.
How to Choose a Mobile Banking App/Company
Choosing the best mobile banking app depends on your needs, financial goals, and budget. Understanding those aspects will make selecting the right partner and company easier.
Assess your needs first. Before evaluating financial apps, consider your requirements. For example, you may want flight insurance because you travel a lot. You may also request payments often and want to use a customizable link to make the process more efficient.
Understand your financial goals. For everyday financial transactions, mobile-first banks are excellent. However, suppose you want to start investing or seek a tax-exempt account. Most challenger banks don’t offer robust investing platforms. Moreover, tax-free accounts are rare. Thus, you might have to look around or stick with the status quo to achieve your goals.
Consider your budget. While free accounts/plans are standard with neobanks, users must pay to access more features and benefits. It’s the classic freemium model that thousands of tech companies use. They offer free plans to convert users to premium accounts. Secondly, monthly plan/subscription fees can add up to over a hundred euros, pounds, or dollars annually. However, paying monthly fees might not be financially prudent or practical for some people’s budget/saving objectives or debt obligations.
Standard Features
Fintechs and neobanks will continue to add products, services, and features to compete with their rivals and traditional banks. What one company doesn’t have today will likely be offered in a few months to a year. Therefore, you needn’t worry about missing out on the long term. Challenger bank apps typically have these features:
- Virtual and physical bank cards
- Instant push notifications on all transactions
- Analytics and categorization of expenses
- Multiple accounts for saving and budgeting goals (not the same as an interest-bearing savings account)
- No foreign exchange fees when spending abroad
- Free money transfers to other users
- Make recurring payments
- Download and print account activity
- Connectivity to third-party apps, for example, Apple Pay and Google Pay
- Card lock/unlock at your discretion. For instance, if your card gets lost or stolen
Bunq Overview
Bunq (stylized as “bunq”) is a fully licensed Dutch mobile bank operating across the EU. It allows you to spend, save, move, transfer, and invest your money. Its mission is to break free from the status quo and create a bank with customers in mind.
Bunq values progress, transparency, and freedom of choice. It claims to be “the only bank in the world where you decide what happens with your money. What’s yours always stays yours.” Also, they’ll never sell out your private information.”
Bunq is available on Apple and Google Play app stores and offers a web app. It has an “Average” rating on Trustpilot.
Revolut Overview
Revolut is trying to provide one app for everything related to money. For individuals or businesses, Revolut is the only banking alternative designed for a worldwide lifestyle. It offers free and premium products and services at affordable monthly prices. Revolut operates as a bank in some European countries.
Revolut focuses on today’s hyper-connected world by being a progressive financial partner. It wants to adapt to your needs, give you control, and continuously push you into new and exciting spaces. It welcomes customers to a world of better money management.
Revolut is available in the Apple and Google Play app stores. It has a “Great” rating on Trustpilot.
Revenue Models
Bunq earns money through plan subscription fees, shares revenues, or collects fees through third-party product and service arrangements, such as its partnership with Wise to offer money transfer services. It also earns money from card top-ups, deposits, withdrawals, additional accounts, safekeeping, and card issuance. Bunq charges business customers various fees that may not apply to individuals. Click here for Bunq’s fees.
Revolut makes money through plan subscriptions and insurance premiums. It shares revenues or collects fees through third-party product and service arrangements; for example, customers can earn cash rewards through purchases at select partners (Revolut Perks). It charges fees on withdrawals above its fair usage limits. Weekend transactions and currency conversion fees may apply. It collects custodial and commission fees from investment accounts. It makes money from replacement cards and delivery fees. Click here for Revolut’s fees.
Products and Services
Bunq
Bunq’s products and services (depending on the card/plan and country) include:
- Budgeting and analytics
- Current account
- Expense management
- Interest-bearing account
- International bank account details
- Joint account
- Money transfer
- Multi-currency account
- Online payment
- Perks and discounts
- Purchase protection
- Business account
Unique features (depending on the card/plan):
- Participate in environmental and green initiatives.
- Round up payments and save the difference automatically.
- Automatically set aside VAT on a dedicated bank account.
- Add notes to receipts and payments.
- Predict future balances to support purchase decisions.
- Use a personal link to collect payments.
- Track and split your group and social expenses.
- Use voice commands with Siri to manage your accounts.
- Invest your spare change in stocks automatically.
- Add and manage all your loyalty cards in one place.
- Keep track of your subscriptions.
- Get deals and discounts with Bunq partners.
- Get purchase protection and extended warranties for carefree shopping.
- Get future balance predictions to help manage your money.
- Scan invoices and receipts for easy management.
Revolut
Revolut’s products and services (depending on the card/plan and country) include:
- Budgeting and analytics
- Cryptocurrency account
- Currency exchange
- Current account
- Expense management
- Insurance
- International bank account details
- Interest-bearing account
- Investment account
- Money transfer
- Multi-currency account
- Online payment
- Open banking
- Perks, discounts, and cashback
- Personal loans
- Purchase protection
- Salary advance
- Teen account
- Business account
Unique features (depending on the card/plan and country):
- Earn interest on your money with Savings Vaults.
- Round up payments and save the difference automatically.
- Round up payments and donate the difference to charities.
- Withdraw up to £800 each month for free (a fee may apply to higher withdrawal amounts).
- Split and settle expenses with your family and friends with “Group Bills.”
- Trade stocks commission-free.
- Buy, sell, and hold cryptocurrencies, including Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and Ripple.
- Buy and sell gold.
- Get 0.1 percent cashback within Europe and 1 percent outside Europe on all card payments.
- Get delayed baggage and flight insurance.
- Get pet insurance.
- Get coverage for damage or theft of a rental vehicle, with a limit of £/2000.
- Get exclusive partner perks.
- Gain access to 1,000+ airport lounges worldwide with LoungeKey.
- Get free airport lounge access with SmartDelay if your flight is delayed by over an hour.
- Use a concierge service to help manage your lifestyle.
Product Comparison
| Bunq | Revolut | |
| EUR account | ✔ | ✔ |
| GBP account | ✔ | |
| Savings account | ✔ | ✔ |
| Borrowing | ✔ | |
| Overdraft | ||
| Money transfers | ✔ | ✔ |
| Insurance | ✔ | |
| Investing | ✔ | |
| ✔ | ||
| Joint account | ✔ | ✔ |
| Teen account | ✔ |
Plans and Pricing
Bunq and Revolut have multiple subscription plans, and annual payments may reduce costs.
| Plan A | Plan B | Plan C/D/E | |
| Bunq | Free | €3.99 | €9.99/€18.99 |
| Revolut | Free | €3.99 | €7.99/€13.99/€50 |
Recommendation
Bunq and Revolut are both useful mobile banking apps. However, Revolut outpaces Bunq because of its broad product portfolio and global footprint. For instance, Revolut offers stock and cryptocurrency trading, travel and medical insurance, and many perks and rewards. Also, it’s quickly expanding worldwide, making it a robust financial partner wherever you go. By contrast, Bunq provides multiple cards, including earth-friendly and CO2 features.
Bunq is more expensive than Revolut but offers less. I recommend trying both apps, but if I had to select one, I would choose Revolut for its innovation, global network, convenience, and product selection.
