Why FinTech Banks Are Kicking Out Traditional Banks?

John Kalvadet
4 min readMar 8, 2021

Hi, wait… what did you just read?

Are you telling me the FinTech Banks are taking over from the traditional banks? Yes, I’m.

But wait! What is a FinTech Bank first of all?

FinTech means ‘computer programs and other technology used to support or enable banking and financial services.’ Source Oxford.

This means FinTech banks are made as a replacement for traditional slow and ineffective banks. FinTech banks are here for the client, the goal is to make their bank experience better and easier. That’s why is’s common to focus on the app and the features instead of just screwing over the clients with hidden fees under transactions and value exchange.

FinTech Banks are now on the rise, but where did they start mostly from? We can go to the UK and we will see traditional banks as Sterling and others trying to give a FinTech experience for their customers to keep up the demand for more efficient services.

The 5 leading FinTech banks in Europe:

  1. Revolut 4 mill+ Customers
  2. N26 2,5 mill+ Customers
  3. Monzo 2 mill+ Customers
  4. Monese 1 mill+ Customers
  5. Starling 600k+ Customers

But, many more are to come.

We have other PrePaid cards that now transmit their services from PrePaid over to FinTech services, an example of that is LunarWay from Denmark.

In Europe, it’s many new coming FinTech banks that follow the trend from the UK and Germany. This is an era where I do not see traditional banks have any chance to compete. Take Norway as an example they have digitalised mostly everything in the public sector, so now things are more efficient. But what has the public sector to do with Banks? It is a way to see what works and not in the country. When digitalising works well in the public sector the private is on the rise.

Banks as DnB — Den Norske Bank (The Norwegian Bank) the biggest bank in Norway is closing their branch and going Online as well. That means that service in person is starting to be less and less relevant for banks. That on the other side means, then what separate the Traditional banks from the FinTech banks? Yeah.. someone would say it’s safer to have your money in a traditional bank, you are able to get a mortgage, car loans and…