App-only banks are on the rise in Europe, The New York Times reports.
Millions of customers across Europe, most of them in their 20s and 30s — millennials, or Generation Y, as well as Generation Z — have signed up to app-only banks in the past two years. The growth is due to favourable regulations and an influx of venture capital. Examples include the United Kingdom startup Monzo, which offers chequing accounts and ATM cards but has no physical branches, The Times wrote this past September.
Co-founder and chief executive of Monzo is 33-year-old Tom Blomeld, who said that the Internet was enabling the operation of his fintech operation at a fraction of the cost of a traditional banking business. Roughly 75 percent of Monzo’s 900,000 clients are under age 40 and are equally men and women, The Times stated.
In Canada, The Globe and Mail reported that the best bank for millennials, or Gen Ys who were recently graduated or still in school, was Alterna Bank. Owned by Alterna Savings Credit Union (158,000 members, $7.13 billion in assets), Alterna Bank offers a no-fee chequing account with unlimited Interac e-transfers, end-to-end digital mortgage experience, a competitive high-interest eSavings account and ATM access through The Exchange. ◊