Surprise bank fees are big pain point for most Irish customers - Business Insider

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Customer frustration around the pain point of hidden fees highlights an advantage neobanks can exercise over incumbent competitors

of neobanks offer fee-free checking accounts, and many also offer overdraft coverage, allowing customers to overdraw their accounts up to a certain amount per month without incurring a fee.

The N26 study suggests that the potential for customer acquisition could outweigh the hit to neobanks' balance sheets due to fee-free offerings. For neobanks, one challenge of fee-free accounts is that they do not generate revenue. On top of that, most offer high-yield savings accounts: Every basis point of interest over the going rate that neobanks offer is a basis point cut from margins. As a result, most neobanks operate at a loss.

 

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