Digital Banks in Spain Surpass 5 Million Customers

Explore the rise of digital banks in Spain as they reach over five million customers, reshaping the banking experience and driving innovation.

In light of the exorbitant fees imposed by traditional banking institutions, a significant segment of the populace is increasingly gravitating towards more economical alternatives. In Spain, this shift has manifested in the burgeoning presence of digital banks, colloquially referred to as fintech banks. These digital-only entities have now amassed a staggering customer base exceeding five million, marking a remarkable trajectory of growth across the nation. This milestone signifies an impressive augmentation of nearly two million users within a mere twelve-month period.

A substantial portion of this expansion can be attributed to the British fintech powerhouse, Revolut, which boasts an impressive user count of over 3.5 million in Spain alone, with aspirations to eclipse the four million mark by the conclusion of 2024. Revolut's growth in the Spanish market has been nothing short of meteoric; during the summer of 2023, the digital bank reported approximately two million customers, a figure that had doubled from just one million the previous year. On a global scale, Revolut's user base exceeds 45 million, with Spain identified as a pivotal market in its strategic expansion.

A recent analysis conducted by Grupo Inmark reveals that fintech banks, including Revolut, N26, and Bnext, have successfully captured 53% of newly acquired banking customers in Spain. By facilitating nearly 20% of all new customer accounts, Revolut has achieved a significant milestone within the Spanish banking landscape, surpassing established giants such as BBVA, Santander, and CaixaBank.

N26, recognized as the largest neobank within the Eurozone, ranks as the second most favored digital bank in Spain, with a customer base exceeding one million. The German fintech has experienced a commendable growth rate of nearly 20% in its Spanish clientele over the past year. However, N26 is now pivoting its focus towards enhancing engagement with its existing customers, encouraging them to leverage its platform for routine banking, saving, and investment activities.

Spanish-based Bnext has garnered approximately 870,000 users, many of whom have been attracted through strategic partnerships with Correos (Spain’s postal service) and government initiatives such as the cultural voucher scheme. MyInvestor, an Andorran-backed neobank, has also witnessed rapid growth, with its user base expanding by 55% over the past year to surpass 340,000 customers. Meanwhile, Bunq, a Dutch neobank that made its foray into the Spanish market in 2021, now boasts over 100,000 users, propelled by an astonishing 700% annual increase in deposits.

While some neobanks, such as Qonto—targeting small and medium-sized enterprises—do not disclose specific user statistics by country, it is noteworthy that Qonto is experiencing a robust growth rate of 40% in Spain. The neobank anticipates surpassing one million customers globally by 2026 as it broadens its reach into additional European markets.

The landscape of banking in Spain is undergoing a transformative shift, with fintech banks not only challenging the status quo but also redefining the parameters of customer engagement and financial accessibility.