The banking sector has undergone major upheavals in recent years, with digitalization and the arrival of new low-cost offers. These changes are altering customer behavior. Here's an overview of low-cost offers in retail banking.
A bank account and card for €2 a month
The low-cost battle is intensifying in retail banking, which can be a godsend in terms of savings, provided, of course, that you know which offer to choose and accept certain constraints in return. Offering a bank card and account for just 1 or 2 euros a month is the promise of many emerging establishments, such as Boursorama, BNP, N26 and Orange Bank. Although Crédit Agricole was one of the first banks to launch low-cost offerings (with Eko by CA), it is now joined by others such as Caisse d'Épargne with Enjoy by CE or Banque Postale, with Ma French Bank.
In France today, almost 4.5 million customers have decided to turn to the services of online banks and neobanks. These establishments are revolutionizing the banking landscape. They are accessible without any income requirements, offer a card and open a bank account for a very low fee. Some banks, such as Orange Bank, N26 and Boursorama, even offer free banking. But with such a low fee, there's no getting away from it.
Constraints of low-cost offers
With such low monthly payments, the customer is subject to certain constraints. Generally, they have a systematic authorization card, which allows them to pay only if they have the necessary amount in their account. With Boursorama, customers must make at least one monthly payment with their card, and make 3 withdrawals or payments with Orange Bank.
Most low-cost offers are 100% mobile, which means that your bank account is not attached to a physical branch - everything goes through your mobile. With your classic card, you can make withdrawals from ATMs affiliated to your bank, have access to an online advisor, and even have access to a checkbook if you so wish in certain establishments. You can also make all your purchases via your telephone.
Beware of certain fees
In this low-cost competition in retail banking, it's important to point out that these small fees can quickly escalate, especially when it comes to ATM withdrawals. Nickel charges one euro for each card withdrawal from an ATM.
With Carrefour and its C-Zam offer, you can withdraw commission-free only at Carrefour Banque or BNP Paribas ATMs in France. You can of course make withdrawals elsewhere, but additional charges will apply. With major banking networks such as Crédit Agricole's Eko, Caisse d'Epargne's Enjoy or LCL Essentiel, the situation is identical, while Ma French Banque, N26 and Welcome offer free withdrawals in the euro zone, regardless of ATM. Some offers also seem more attractive than others if you're traveling outside the euro zone. This low-cost battle should not make you lose sight of the services and guarantees you need from a bank.