Else Beekman
Due to high fees charged by traditional banks, people are open to cheaper alternatives. In Spain, these are now available in the form of digital banks, or also called fintech banks. These digital-only banks in Spain have surpassed five million customers, continuing their rapid expansion across the country.
This milestone represents an increase of nearly two million users in just one year. Much of this growth is attributed to the British fintech, Revolut, which alone has more than 3.5 million users in Spain and expects to surpass four million by the end of 2024.
Revolut’s rise in Spain
Revolut has been expanding at a remarkable pace in Spain. In the summer of 2023, the digital bank had around two million customers in the country. Just a year before that, the figure stood at one million. Globally, Revolut has over 45 million users, and Spain remains a key market.
Ignacio Zunzunegui, Revolut’s Head of Growth for Southern Europe, explains in the economical newspaper Expansión the reasons behind this growth. One major factor was the launch of Revolut’s banking branch in Spain, which allows customers to have a local IBAN (International Bank Account Number). In addition, Revolut has broadened its product offerings, including interest-bearing accounts, money market funds, and integration with Bizum, the popular instant payment system in Spain. “We’ve evolved from being just a travel card for foreign currency payments to a full-service daily bank,” Zunzunegui says.
Milestone in Spanish banking sector
According to a recent study by Grupo Inmark, fintech banks such as Revolut, N26 and Bnext have acquired 53% of new banking customers in Spain. By opening almost 20% of all new customer accounts, Revolut has reached a major milestone in the Spanish banking sector, overtaking major players such as BBVA, Santander and CaixaBank.
Other major players in the fintech bank market
N26, the largest neobank in the Eurozone, is the second most popular in Spain, with over one million customers. The German fintech has grown its Spanish user base by nearly 20% over the past year. However, N26 is now focusing on deepening its relationship with existing customers. Therefore, the bank is encouraging them to use its platform more frequently for everyday banking, saving, and investing.
Spanish-based Bnext has around 870,000 users, with many coming through partnerships with Correos (Spain’s postal service) and government programmes like the cultural voucher scheme. MyInvestor, an Andorran-backed neobank, has also seen rapid growth. It saw its user base increase by 55% in the last year to over 340,000 customers.
Bunq, a Dutch neobank, entered the Spanish market in 2021 and now has over 100,000 users, driven by a 700% annual increase in deposits. Some neobanks, like Qonto, which focuses on small and medium-sized businesses, do not disclose country-specific user numbers. However, Qonto is experiencing a 40% growth rate in Spain and expects to surpass one million customers globally by 2026 as it expands into more European markets.
Also read: Spanish Central Bank tightens controls on mortgage lending by banks