The Rise of Online Banks and the Future of Traditional Banking

Online banks are experiencing significant growth, challenging the traditional banking landscape. In 2025, BoursoBank, a subsidiary of Société Générale, saw a record increase of 1.9 million modern users, bringing its total customer base to over 8.8 million – a 22% year-over-year increase. BFMTV reports that Hello Bank!, backed by BNP Paribas, surpassed one million customers in 2024, while Arkéa Direct Bank, encompassing Fortuneo in France and Keytrade Bank in Belgium, reached 1.63 million customers by the finish of 2025, a more than 70% increase over four years.

Erosion of Traditional Banking Monopoly

This surge in popularity of online banks reflects a broader shift in the market. A study by Bain & Company indicates that traditional banks are losing their monopoly to fintech companies and neobanks. Les Echos highlights that this fragmentation extends beyond current accounts to savings and investments, traditionally the stronghold of relationship banks.

Bain & Company warns that traditional banks could lose up to 25% of their net banking income (NBI) by 2030 if they fail to adapt to this evolving ecosystem.

The Risk of Cannibalization

For traditional banks that have launched their own online offerings, there’s a risk of cannibalization. Julien Bet, head of retail banking for Bain & Company, suggests this will likely coincide with a decrease in NBI per customer, as online banks often employ more aggressive pricing strategies.

The key to balancing this strategy lies in a segmented approach, tailoring each model to specific customer segments with appropriate service costs. The goal for online banking is to acquire new customers and expand the overall customer base beyond daily banking needs.

Divergent Strategies Among Traditional Players

The approach to launching online banks varies among traditional players. Marc Campi, a partner at Square Management, explains that Hello Bank! was integrated into BNP Paribas’s retail banking strategy without subsidiary status, unlike BoursoBank (a Société Générale subsidiary) and BforBank (a Crédit Agricole subsidiary). Les Echos

BNP Paribas launched Hello Bank! with the ambition of becoming the first bank designed exclusively for mobile use, leveraging BNP Paribas’s IT infrastructure to offer a complete range of products. BforBank, however, has shifted its positioning several times, initially focusing on high-end savings before broadening its ambitions and then returning to a savings focus.

The Importance of the Digital Experience

Since 2018, the importance of digital experiences has increased sixfold, while the importance of products and services has nearly doubled, according to Bain & Company. A seamless “end-to-end” digital experience now generates comparable customer satisfaction to interactions with a human advisor.

Widening Gaps in Customer Satisfaction

The Net Promoter Score (NPS) for French banks reached 18% in 2025, its highest level in a decade. However, the gap between digital players and traditional banks has widened from 28 points in 2023 to 43 points in 2025.

Marc Campi identifies pricing, brand image, and access to human advice as key differentiators. While traditional banks focus on tangible human advice, online banks aim to become customers’ primary bank to increase their GNP per customer and achieve profitability. BoursoBank achieved profitability for the third consecutive year in 2025.

The Evolving Concept of the “Main Bank”

The concept of a “main bank” – where customers deposit their income and conduct most transactions – is becoming less relevant in the age of multi-banking and digitalization. Customers are increasingly diversifying their banking relationships based on specific needs, fragmenting their savings and investments.

The Future: Offering the Best of Both Worlds

Traditional banks must now offer a combination of physical and digital experiences to remain competitive. This includes providing seamless digital journeys across all products and services, alongside physical interactions for customers who prefer them.

The rise of exclusively digital players like Revolut, Yomoni, Trade Republic, Helios, and N26 continues, with their penetration rate increasing across all products from 67% in 2021 to 78% in 2025. Customers who adopt these new players often reduce their activity with their traditional banks, with nearly 80% decreasing their engagement with their primary bank.