New bank in Irish market: Number26

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Paul M.

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German digital bank Number26.eu have announced their expansion into Ireland. Heard about it on reddit.

I opened an account pretty easily using their video chat ID verification. Mobile app is pretty nice. Should get the Mastercard in the post in a couple of days apparently.

An interesting feature is that, like Revolut, there are no fees for usage abroad whatsoever. You get the Mastercard daily exchange rate.
 
Do you know how inbound foreign currency transfers are treated (I.e transferring sterling or dollars in), are they also free/at decent FX rate?
 
According to the FAQ, they don't accept inbound foreign currency transfers.

"Transfers in foreign currencies to your NUMBER26 account, however, are not possible yet and will be rejected. Please only transfer Euros to your NUMBER26 account."

(Second paragraph of answer to the FAQ question "How can I make a transfer in a foreign currency?")
 
Wow. Very interesting.

From a cost perspective, this is easily the best value current account, on the market. Free day-to-day banking with no criteria to meet.

This really has to be the future. Cashless branch-less global app based banking.

Before we recommend this, do SEPA direct debits work from this account for Irish utilities? Previous posters have indicated problems with setting up SEPA payments from non-Irish bank accounts.
 
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It's not a proper credit card - more like a prepaid debit card. I must admit when I first checked the website I thought they were offering a credit card as well as a prepaid card.

Anyway you definitely wont get hit with the €30 charge Irish Government Levy or the 12 cent charge I presume when taking cash out at ATM.
 
Are they actually a bank? They don't seem to be on the Central Bank of Ireland register...
 
Where is my money stored?
Your money is held by our German partner bank Wirecard Bank AG.

This means it is protected by German deposit insurance up to several million Euros. Due to European regulations, we are able to offer bank accounts in any country in the European Union.
 
Thanks I couldn't find a reference on their website. I'm still confused are they taking deposits? If they are and are an agent of wirebank they'd need to be authorised as a deposit agent in Ireland. The above sounds like they are provinding a payment account rather than a bank account and are safeguarding the money in a Wirebank account. Also the eu deposit protection scheme only covers €100,000 not millions.. I'd wonder do they know what legislation they are operating under.
 
Sorry I see the Germans have a separate scheme running which is probably in addition to the EU scheme so maybe the cover they mention is right but I'd still wonder about whether they are providing bank accounts or payment accounts.
 
https://number26.eu/support/german-deposit-protection/ - more info

The definition of a Bank etc. is changing. I wouldn't call the card a Credit Card but they are happy to call it that. You do get a IBAN and BIC and you can do direct debits and standing orders.

They are calling it a Bank Account - you transfer money in via a bank transfer. You dont' get any interest. They will consider savings accounts later.
 
Thanks for the link. Yeah it sounds like a payment account as you can't pay interest on a payment account.
 
Daffodils said:
the eu deposit protection scheme only covers €100,000 not millions
Click to expand...

There is no EU scheme. Each member state has their own scheme. The Irish Deposit Guarantee Scheme covers deposits up to €100,000 for all depositors in Irish regulated banks regardless of their residence.

Number26 depositors have insurance from the German deposit insurance scheme.

Daffodils said:
I'm still confused are they taking deposits? If they are and are an agent of wirebank they'd need to be authorised as a deposit agent in Ireland.
Click to expand...

Number26 are effectively taking deposits.
Number26 do not need to be regulated here, they simply need to be regulated in a different EU country.
Number26, according to their website, will offer savings accounts soon.

The above sounds like they are provinding a payment account rather than a bank account and are safeguarding the money in a Wirebank account.
Click to expand...

Do you mean WireCard Bank AG?
Number26 are not providing a segregated polled account like Revolut.
The definition of a payment account is broad.

theresa1 said:
I wouldn't call the card a Credit Card but they are happy to call it that.
Click to expand...

Yeah, I have read more into this now. Number26 are offering a card that is coded as a credit card but effectively works like a debit card. Free ATM withdrawals and the money instantly comes from your current account. Not how a traditional credit card works.
 
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Ciaran t yes each country administers their own deposit protection scheme but they adhere to EU legislation. Either way only deposits in a credit institution are covered not money placed on a payment account. Number26 appear to me to be offering a payment account.

Are Number26 regulated? I thought they were providing the services via a third party.
 
The money is held by Wirecard Bank AG. Wirecard Bank AG are regulated by BanFin. Number26 is regulated but the regulation side is dealt with by Wirecard Bank AG.
 
http://www.consumerhelp.ie/switching-accounts - if you intend to close your existing current account and move to number 26 you will have to do everything manually.

I'm still FREE with PTSB but if charges came in and I could not find another FREE provider in Ireland I would move my current account.

We live in interesting times - the likes of BOI,AIB etc. really should be looking at launching a similar product - standalone or in partnership with a new start up.

In Germany they use shops to take deposits of cash. Imagine if they teamed up with An Post - it's great competition and the days of FREE Irish (yes with some strings attached) current accounts as I said before are far from over.
 
theresa1 said:
We live in interesting times - the likes of BOI,AIB etc. really should be looking at launching a similar product - standalone or in partnership with a new start up.
Click to expand...

Sooner or later the retail banks will be forced to offer online only, app-based, current account offerings. The slower they adopt to the change the bigger the effect it will have on their business.

I find it very surprising that none of the Irish banks segregate their free banking product offering to only those that will use online only channels with fees for those that want a branch offering.

theresa1 said:
it's great competition and the days of FREE Irish (yes with some strings attached) current accounts as I said before are far from over.
Click to expand...

Yeah, agreed, free banking will exist in some form for the foreseeable future.

theresa1 said:
I'm still FREE with PTSB but if charges came in and I could not find another FREE provider in Ireland I would move my current account.
Click to expand...

And there is the problem for PTSB, KBC and the others. Introduce fees and droves will start switching to Number 26.
 
I wonder, seeing as their debit card is not a debit card, will it allow for cash back?
 
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