Neobanks such as Revolut and N26 have seen increased interest in their services following ING Luxembourg’s to curtail its retail banking services in late May, over 30,000 clients in need of new bank accounts. Alongside brick-and-mortar banks taking new clients, online-only banks are also capturing a portion of this customer base.

A representative from Revolut told Delano, “Since late May, we’ve observed a roughly 30% increase in Revolut sign-ups in Luxembourg, coinciding with a recent competitor closure.” The representative added, “While the market is tightening, Revolut is experiencing phenomenal growth across Europe, including Luxembourg, where we now have over 60,000 retail customers.” Revolut serves 35m clients globally.

The London-based neobank emphasised its strong market penetration in Luxembourg and stated, “We will continue to invest as we aim to become the leading bank in every market we serve.” As of April 2024, in addition to banking, Revolut also investment services in the grand duchy and has five employees in Luxembourg.

N26, a German neobank headquartered in Berlin with 8m customers globally, described itself as “a challenger in the Luxembourg market where we are not as well known as in Belgium or the Netherlands.” Despite this, the spokesperson confirmed “some uptick in our account openings” in Luxembourg, though not significant, noting that it is “too early to draw a quantitative conclusion.”

N26 expressed confidence in its ability to grow and develop its market position in Luxembourg over the coming months, citing the removal of previous ‘growth cap’ restrictions by the German financial regulator Bafin. “We will be able to support our global growth strategy in each of our 24 European markets,” the spokesperson concluded. N26 did not disclose its customer base in Luxembourg.