Navigating Europe's Neobank-Based APIs
Neobanks - digital banks without physical locations - have been gaining in popularity in recent years for a range of reasons. Many offer services with no or minimal service fees compared to conventional banks, are easily accessible to people who travel a lot, and are ideal for those engaged with the growing cryptocurrency market. One of the most recent innovations in neobanking, however, is the introduction of APIs - applications programming interfaces for investing.
If you're interested in investing using a neobank, how do you know which one to choose? Just as you would compare the features of traditional and neobanks, a careful analysis of European neobanks with APIs can help you identify the best fit for your needs.
Revolut's Rise
Revolut has been in business since 2015, offering clients a range of banking services, but the company only began offering investment services in the second half of 2019. That service allowed their upper-tier "Metal" service members to make up to 100 commission-free trades per month. That being said, the ability to make trades isn't the same as the ability to analyze and model different trade situations, which is central to any good API. So, what's changed?
For now, not much. Earlier this year, Revolut entered a partnership with Open Banking, an API that allows users to evaluate their daily spending and track trends, but their investment platform still only offers the most basic trading features. Users can hope, however, that with this new partnership, Revolut is moving toward a more comprehensive set of investment tools.
What's Next With N26
Revolut may still be developing its suite of investment tools, but they're not the only player in the API game. For those investors looking for a comprehensive option along the lines of AlphaVantage's stock API with features like technical indicators and diverse portfolio options, it's worth considering N26.
N26 is moving to compete in the United States, so they have a lot of motivation to develop a competitive suite of services. So far, the German bank has 3.5 million customers across 26 markets, but because of their wide reach, N26 has largely avoided developing its own investment tools; competing demands and requirements make it impractical. Though they previously offered a program called N26 Invest, German users were moved to the program's holding bank, FIL Fondsbank GmbH. With their move to the US, however, N26 has partnered with Axos, which already offers a variety of API integrations.
Other European Options
What other European neobanks are opening up their investment options? The options are emerging, but still narrow, in part because many European countries express hesitancy around investing in stocks relative to their American peers. That being said, the Netherlands-based company BUX recently launched a partnership with Tikkie for API support, while Copenhagen's Saxo Bank offers a robust API as part of their platform. The tools are out there, but they aren't as popular as they are with many American banking applications.
The good news for Americans who want to invest in European markets or Europeans looking for local investment applications is that, while APIs may be in-house products, they're inherently plug-and-play in nature. Groups like GitHub make APIs for a variety of platforms, and there are an assortment of tools that tech-savvy investors can use to develop APIs to their individual needs. And while European neobanks continue to expand their investment options, in-house APIs are sure to follow.