As France’s financial sector undergoes rapid digital transformation, the competition between traditional banks and neobanks is intensifying—especially in the domain of consumer products. While neobanks continue to chip away at market share in savings and investment products, the real estate loan segment remains firmly in the grip of traditional banks.
Neobanks Gain Swiftly in Savings and Investments
Digital-only neobanks—like Revolut and N26—have attracted millions of French customers by offering easy online access, user-friendly apps, and attractive savings and investment products. These fintechs, unburdened by brick-and-mortar branches, appeal especially to younger, tech-savvy users who value seamless mobile experiences and higher rates for savings. According to sector analysts, most new neobank clients sign up for day-to-day banking and investment accounts rather than complex credit products.
Traditional Banks Double Down on Mortgages
Real estate loans, however, remain the stronghold of legacy banks such as Crédit Agricole, BNP Paribas, and Crédit Mutuel. These institutions, with decades of lending experience and strict regulatory compliance, leverage mortgages as a critical loyalty tool: a third of Crédit Agricole’s new clients each year join after receiving support for home purchases.
This strategy is behind Crédit Agricole’s latest innovation—a rapid mortgage pre-approval service available in just six to eight minutes by analyzing digital documents. Customers are then contacted within 24 hours to complete their application. By digitizing and simplifying the mortgage journey, traditional banks are both fending off digital competitors and catching up on customer experience.
Other online banks backed by traditional institutions, such as Hello bank! (a BNP Paribas subsidiary), are enriching their mortgage offers with digital features—like allowing customers to suspend repayments directly via their app for increased financial flexibility.
Why Mortgages Are a Hard Nut for Neobanks to Crack
Despite their gains in everyday banking and savings, neobanks have been slow to launch their own real estate loans in France. The reason: mortgages require significant capital reserves, strict regulatory compliance, and expertise in managing credit risks—areas where most fintechs are still building capacity. So far, no 100% digital neobank has launched a real estate lending service in the French market.
That could change in future. Revolut is currently testing home loans in Lithuania and Ireland, hinting at a possible gradual expansion across Europe in the coming years. As neobanks aim to retain maturing customers looking for comprehensive financial services—including property finance—the pressure is on to broaden their offerings.
The Future: Blending Digital Innovation with Integrated Services
As processes become increasingly digital, French banks old and new are racing to deliver faster, more user-friendly home loan applications. But sector experts note that ultimate differentiation will depend on added value—such as personalized advice, more competitive rates, and holistic financial solutions—rather than technology alone.
For now, French homebuyers seeking a mortgage will still find traditional banks leading the way—though the landscape may continue to evolve rapidly as digital players step up to the challenge.
