From minor league to major players: Neobanks are growing up

Neobanks have shaken up the banking world like no other trend before. But by 2025, it was about more than just bright colours and trendy features – it was about delivering lasting benefits. In this article, you’ll learn how the market is developing, who’s here to stay and who’s on the way out, and why the future of digital banking is much more mature – and exciting – than you might think.

Neobanks set out to revolutionise banking, and they certainly have. While traditional banks focused on branches, opening hours and fees, new digital providers began to spring up everywhere from the mid-2010s onwards. No paperwork, no drawn-out processes – just open the app and get started.
 
The European pioneers – N26, bunq, Monzo, Revolut and Starling Bank – quickly demonstrated the demand for intuitive, mobile-optimised banking solutions. Multi-currency accounts, real-time push notifications and free current accounts gave millions of people a degree of freedom they simply couldn’t refuse. However, as with every revolution, a moment of disillusionment eventually came, and a cool app alone is no longer enough for a stable business model.
This proved to be the tipping point for many neobanks in 2025:
 
• Some have disappeared from the radar screen (Flowbank, Coop Finance+, Swiss4, Radicant).
• Others are struggling massively (Yapeal).
• Then there are those that are growing steadily and have earned people’s trust, including Yuh and Neon.
 
Why do some survive and others don’t? Ultimately, it comes down to three things in banking:
 
Trust. Functionality. Sustainable profit.
 
Neobanks must be efficient, achieve good margins, and attract customers who will actually use their products. It is these factors that will determine who stays afloat in the market.

The mid-2010s brought a breath of fresh air to the banking world. Many people were fed up with high fees, complicated processes, and bank branches that resembled government offices more than modern places to manage their finances. The 2008 financial crisis also shook people’s trust in traditional banks, creating fertile ground for new digital players.
 
Then they appeared: the first banks to operate completely without branches, allowing people to do everything via an app. What seems obvious today was practically a mini-uprising against the established system back then. The first big names were N26 in Germany, bunq in the Netherlands, and Monzo, Starling Bank, and Revolut in the UK. They all offered free current accounts, real-time notifications and multi-currency accounts – features that took traditional banks by surprise.
 
Their success spoke for itself, with millions of customers switching to a bank that felt more like a modern digital product than a dull administrative task. Today, the major neo-banks have over 100 million users between them and are still growing.
 
Europe has thus become something of a hotspot for digital banking. Innovation is booming in countries such as the UK, Germany and the Netherlands, with Switzerland close behind. The result is a diverse landscape of neo-banks that offer not just accounts, but complete financial platforms – including investments and cryptocurrencies – all in one app.

Just a few years ago, digital banking was a niche issue in Switzerland. Today, it’s an established part of everyday financial life. An increasing number of people are managing their money via their smartphones instead of relying on traditional e-banking services or visiting their local branch. Alongside digitally savvy individuals, who are often younger, an increasing number of customers at traditional banks are now open to digital solutions too.
 
Despite Switzerland’s reputation for having a high number of banks (around 250), the first Swiss neobank did not appear on the market until 2018. Bank Cler launched Zak, the first banking product that could be operated exclusively via smartphone. Previously, anyone wanting to try a neobank had to rely on foreign providers such as Revolut. Although Revolut did not officially have a presence in Switzerland at that time, it was able to attract numerous Swiss users, albeit mostly for use as a secondary account abroad rather than for a full-fledged banking relationship. This was due to a lack of Swiss security standards and less regulatory stability.
 
Following the launch of Zak, several other Swiss neobanks emerged: Neon (2019), Yapeal (2020), Yuh (2021), Alpian (2022) and Radicant (2023).
 
Yuh was founded in 2021 as a joint venture between Swissquote, Switzerland’s most successful online bank, and PostFinance, one of the country’s largest retail banks. The goal was clear: to combine paying, saving and investing in a single app as simply as possible. Since its launch, the Yuh community has grown continuously, attracting not only digital natives but also those who are new to mobile banking. Since July 2025, Yuh has been wholly owned by Swissquote, which further strengthens its foundations and consolidates its long-term strategic focus.

Faced with this new reality, Yuh is in a good position. Backed by Swissquote, it is technically solid and strategically diversified. Furthermore, it offers an app that combines traditional banking with modern trading and smart savings solutions. Yuh seems to have understood what Swiss customers really expect from a smartphone bank, including practical features such as complete TWINT integration. Yuh set the standard for this feature as the first neobank to offer it.

Backbase’s State of European Banking  survey report (which surveyed over 6’300 respondents in 13 countries) paints a clear picture of what’s currently happening in the European banking sector. Put simply, traditional banks are under pressure because digital providers are taking more and more customers from them. And not just a few customers, we’re talking significant numbers here.
This trend is particularly noticeable in Germany and Spain – and, yes, Switzerland too. The key factor for success? The digital user experience. If an app works smoothly, people will stick with it. If not, the next provider is just a few taps away.
 
Another statistic illustrates this: 41% of German branch bank customers would be more satisfied if their bank offered better digital services.
 
In fact, more than a quarter have switched banks because the app just wasn’t good enough.
 
Today, people expect much more than an app that doesn’t crash. They want a seamless experience, similar to that when shopping or streaming. This includes automatic international travel detection, chat support directly within the app, personalised financial recommendations, and smart features, all with an intuitive design.
 
Digital providers are also at the forefront when it comes to investing. Neobank users invest almost twice as often and more regularly than customers at traditional banks – hardly surprising, given that this trend is being driven by younger, digitally savvy people.
 
The conclusion of the study could not be clearer:
 
To stay relevant, banks must digitalise, personalise and modernise. Stagnation is a risk that no bank can afford anymore. Digital competitors are waiting in the wings, and today’s customers are more selective than ever before.

This might not sound particularly exciting, but it is a real game changer. Switzerland has one of the strictest financial markets in Europe, and this is becoming an increasing advantage for neobanks. While innovations in other countries often become mired in complex regulatory issues, Swiss providers benefit from clear rules, a high level of security and considerable trust.
 
Topics such as anti-money laundering, data protection and IT security are becoming increasingly important. Customers want to know where their data is stored, who has access to it and how secure their deposits really are. Let’s be honest: The average Swiss customer is pretty sensitive when it comes to security. A bank with a foreign licence, such as Revolut with its Lithuanian licence, is unlikely to be the obvious choice for Swiss customers looking for a place to put their savings.

The next big trend is banking that really knows you. Not in the sense of «We know what you’re doing», but in the sense of «We know what you need.» Users today expect their banking app to recognise when they want to save, how they want to spend their money and how they want to invest.
 
Data-based systems are the key here. They can recognise patterns, suggest savings goals, help people set a budget and find suitable investment opportunities.
 
Things are also getting smarter: In future, AI tools will be able to categorise transactions automatically, make proactive savings suggestions and alert users to potential financial difficulties. The goal is to create an autonomous financing model that assists customers without being patronising.

The third major trend is that users no longer want just an account. They want a financial universe where everything is interconnected, clear and transparent, and expressed in language that doesn’t require a degree in finance to understand.
 
Banking, saving, investing, insurance and pensions will all be integrated into a single ecosystem. Providers who achieve this will become the first port of call for all financial matters. This is precisely why neobanks must continue to invest in digitalisation to maintain their competitive edge. Traditional banks are not resting on their laurels, though; they are well aware that customers want simpler, more digital and more intuitive solutions.

Looking ahead, it’s pretty clear that the Swiss neobanking market will continue to grow, just at a more measured pace. The focus will be on controlled, qualitative growth and retaining existing customers in order to turn a real profit.
 
In practice, this will mean fewer new players, more consolidation, and some neobanks falling by the wayside. This won’t involve dramatic collapses as such; it’ll be more like those apps that you simply stop using sooner or later.
While others continue to struggle, Yuh has already achieved a significant milestone by becoming the first Swiss neobank to turn a profit in 2024.
 
This was just three years after the app was launched. In general sector terms, that’s a bit like submitting a master’s thesis in your first semester! Most international neobanks take much longer to reach this point: Revolut needed six years.
 
One thing is certain: Digital banking will continue to gain ground and the traditional high-street banking model will become increasingly obsolete. It’s not that there’s anything wrong with your local branch; it’s just that people want banking to be as intuitive as shopping or travel. Traditional banks have also recognised this, which is why they are making every effort to digitise their services. This means that fintechs have to keep up or stay ahead of the game – they can’t afford to get left behind.

Growth? Absolutely. But with substance, please.
The era of meteoric rises in user numbers may be over, but there’s no need to be nervous. Neobanking is simply moving on from its teenage years to adulthood: less drama, more stability.
Customer numbers alone are no longer enough when it comes to signs of growth. Neobanks now need to consider:
 
• Profitability
• Trust
• Range of functions
 
Those who want to succeed must demonstrate that they offer more than just a convenient alternative to traditional banks. In reality, the range of digital products and services offered by traditional banks is improving, so neobanks need to demonstrate that they can provide genuine added value.
In Switzerland, the market will consolidate around a few dominant brands. Those that combine innovation and a robust business model with Swiss quality will survive. Others will not.

Banking should fit into your life, not the other way around. In future, a bank’s ability to adapt to the everyday lives of its users will be crucial to its success. A bank should do more than just process transactions; it should support its customers.
 
Neobanks like Yuh and Neon are already far ahead in this respect, offering banking, trading, saving, pensions and crypto – all in one single app.
 
The next step is to develop an intelligent solution that integrates all of the above. This is how a humble app becomes a genuine financial platform.
 
For example:
• Automatically adjusted savings objectives
• ETF portfolios that adapt to your goals using AI
• Financial planning that thinks ahead instead of adding things up afterwards
 
In short, financing that takes care of the hard work so you can focus on what’s important (and enjoyable) in life.

More brains behind the app, less stress in everyday life: The biggest impact in the coming years will (not surprisingly) come from AI. It can already analyse transactions and recognise patterns, and soon, it will be able to help users even more quickly, accurately and proactively to:
 
• optimise savings plans;
• identify investment opportunities;
• alert users to potential financial difficulties early on.
 
The trick will be to integrate AI sensibly, not just because it sounds cool. Customers want support, but they don’t want to feel that their money could suddenly disappear because an algorithm says so. The final decision must remain with the human being.

Many people underestimate the competitive advantage that Swiss standards offer.
 
As banking becomes more technical, security, data protection and compliance will become increasingly important. Swiss neobanks have a clear advantage in this area, as they operate in an environment that sets high standards.
 
These standards are not a hindrance; if anything, they provide reassurance. When it comes to digital banking in particular, people want to know:
 
• How does the app make decisions?
• Who can see my data?
• How safe is my money?
 
Clarity and transparency create trust.

The market is stabilising, from top to bottom, and competition is increasing. Not every neobank will survive; some Swiss neobanks have already failed, and others are under real pressure. International providers are being used, but without a Swiss licence, they are often only the second or third choice.
 
The truth is simple:
Only neobanks with a strong brand, clear customer benefits and a technologically sound product will survive in the long term. Everything else will be weeded out by the market sooner or later.

The digital revolution has transformed the relationship between people and banks. Banking used to be about banks telling customers: «We’ll tell you what to do.» Today, however, customers are telling banks: «Help me, but don’t overwhelm me.» Customers don’t just want services; they want to understand what actually happens to their money. They want to feel their bank is there to support them, not lecture them.
 
To achieve this, banks need to provide easy-to-understand tools, jargon-free communication and apps that make complicated issues seem completely logical. The goal is to enable everyone to manage their finances independently, without experiencing anxiety or being bombarded with technical jargon.

Perhaps the biggest change of all is that people no longer want to just be customers. They want to participate in decision-making and help shape solutions and plans for the future in a language they understand.
 
Whether it’s ETF savings, cryptocurrencies or budget planning, it should all be so intuitive that you can do it on the tram without having to read everything three times. Neobanks that understand this don’t just develop products; they create an ecosystem in which people can learn, grow, and make better financial decisions in the long term.
 
In short, customers don’t want a «You do it» approach; they want a «Just do it and show me how it works» solution.

Innovation? By all means, but without compromising on security! Even though the digital world is becoming increasingly exciting, security remains sacrosanct. Many people, no matter how tech savvy they are, are preoccupied with the question, «Is my money really safe there?», no matter how tech savvy they are.
 
That’s why it’s important for neobanks to shout from the rooftops:
«Yes, we have a Swiss banking licence. Yes, we are regulated. And no, your money won’t just disappear into some mystical cloud-based realm.»
 
Swiss standards remain a massive advantage in terms of trust, especially for users who want to do things digitally but don’t just take everything at face value.

Banking only works when it feels right. Trust is not created by marketing campaigns; it is built through experience. Every positive interaction with the app, every clear piece of information and every transparent price strengthens the relationship between the bank and the individual.
 
Self-determination plays a huge role here: Customers want to be able to see what is happening, why it is happening, and how much it is costing at any time. Transparency may sound simple, but in the banking world, it’s practically a superpower.
 
Then there’s the ambivalence surrounding all things digital.
 
People want smart support, but they also want full control. This is precisely why neobanks must use AI as a tool to support decision-making, not as a substitute for it. The app may help, but people should always have the final say.

The initial phase of excitement and experimentation is over. Neobanking is no longer a gimmick; it is an integral part of everyday financial life. The last few years have shown that nobody wants complicated banking products or opaque fee models. People want solutions that make their lives easier, rather than creating additional stress.
 
This is precisely where modern neobanks come in. They are becoming digital financial assistants, helping with everything from wealth accumulation and sustainable investments to pension planning and organising your monthly budget. The goal remains the same: greater transparency, self-determination and simplicity.
 
Smart finance is not a passing trend, it’s the new norm. Banks that don’t evolve will eventually be left behind. The future belongs to solutions that empower people rather than overwhelm them.

This article was created in collaboration with Become Wealthy, whose clear explanations of financial issues mean you won’t need to read about them three times to grasp the core concepts. It’s traightforward, simple and refreshingly objective. From savings and investments to everyday money matters, Become Wealthy helps you take the right steps and gain confidence without overwhelming you. The goal? Less doubt, more «OK, now it makes sense.»