Recap of Bank on Digital #4 Digital Banking in Europe with Jeroen de Bel

Recap of episode 4 of Bank on Digital focused on digital banking in Europe, key trends in the industry and expert insights from Jeroen de Bel, fintech strategist who is building digital banks with his consulting company Fincog.

You can watch Bank on Digital webinars on demand on YouTube or listen to the episodes on Spotify.

Crisis - Threat or Opportunity for Banks?

Both, neobanks and incumbents, handled the COVID crisis rather well, as Jeroen notes. Neobanks were better positioned to deal with crisis, such as COVID since they are digital bank that are highly agile, with teams working remotely. Their challenge was that of funding nature and the COVID crisis only brought the question of funding into light.

Incumbents were not well positioned to deal with such crisis but they adapted fairly quickly to the new ways of working and servicing their customers. Some digital transformation projects were started out of necessity but the questions of digitalization did not happen overnight and had been posed long before crisis.  

Neobanks in Different Markets

Even though there are noticeable difference in neobanks in Germany, UK, France… generally, their approach was always based on offering new, innovative products and services at low cost or for free while also keeping the operating costs at a low level. This freemium model is banking on acquiring customers first and then trusting that monetization will come at a later stage. These aggressive strategies were used to “steal” customers from incumbents but most neobanks are still looking for appropriate business model. That is why some of them branched out into other segments, such as lending.

On the other hand, the most profitable neobanks are in Asia. Even though there are huge differences between neobanks in, for example, Vietnam and South Korea, they generally differed themselves from incumbents from day 1. They opened new markets by addressing the needs of the unbanked population. Superapp model helped neobanks in Asia differentiate their business models and diversify their product portfolios.

In Latin America, neobanks first and foremost tackled financial inclusion. Nuubank, for example, offered credit cards to those who had not been able to get them from incumbents. Interest rates have been halved and neobanks are still making high profits. 

How Fincog Helps You Build Digital Banks

Fincog has an international experience, working with clients of different sizes, helping them build products and services and customer experience, as well as build processes and choose adequate technologies together with clients. 

They are providing huge value just by publishing research reports and blog posts containing experience-backed insights. Check out for more information.

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