Recent years have witnessed an incredible growth of digital banks, with millions of customers turning their backs on traditional high-street financial institutions. These apps or web-based banks changed the way people handle and manage their money by offering a line of mobile banking services that can be used entirely from smartphones. The increasing popularity of such streamlined financial transactions captured the attention of investors, as well.
According to data gathered by Finanso.se, the three leading European online-only banks hit $1.9bn in overall fundraising as of February. With total funding of $837 million, Revolut represents the highest funded digital bank in Europe.
Revolut Tripled Market Valuation to $5.5bn in 2020
In February 2020, London-based fintech start-up Revolut closed their most recent round of Series D funding, led by TCV, an early investor in Facebook and Netflix, raising a total of $500 million. The company, now valued at $5.5 bn worth, explained this new financing would be used to strengthen its offering in existing markets, as well as for expanding into the lending industry.
With $682.8 million in total fundraising, N26 ranked as the second-highest funded online bank in Europe, revealed the Statista and Crunchbase data. Nearly 70% of that amount was raised last year. In July 2019, the Berlin-based fintech start-up completed an extended series D funding delivering the company a total of $470 million.
The list of investors included names like Tencent, Insight Venture Partners, GIC, Allianz X, Valar Ventures, Greyhound Capital, and Earlybird Venture Capital. German banking start-up, now valued at $3.5bn, raised funds to drive expansion in Europe, the United States and Brazil, as well as investing in innovative new features.
London-based fintech start-up Monzo ranked as the third highest-valued digital bank in Europe with $418.86 million in funding over 14 rounds. The latest round of series F funding took place in June 2019, raising a total of $140.7 million and doubling the company’s market value to $2.6 bn.
Two Leading Digital Banks to Reach Over 23 Million Customers in 2020
European online banks have witnessed incredible growth in the number of customers over the years. In 2018, Revolut announced 1.5 million users. Over the last two years, this number increased over six times and jumped to 10 million in February this year.
The customer base of the German fintech start-up N26 doubled in the last two years, jumping to 5 million at the beginning of 2020. Statistics indicate the number of users of the two leading European online banks will continue rising and hit over 23 million by the end of this year.
With 3.6 million customers as of February, Monzo ranked as the third-largest European web-based bank.
