📖 Banking & Neobank Glossary
Plain-English definitions of 44 key terms — from IBAN to SWIFT to compound interest.
A
Apple Pay
A mobile payment service by Apple that lets you pay with your iPhone or Apple Watch using a linked debit or credit card. Most neobanks support Apple Pay for contactless payments.
ATM fee
A charge applied when withdrawing cash from an ATM. Many neobanks offer a set number of free withdrawals per month (e.g., 2–5), with a fee (typically CHF 1.50–3.00) after the limit is exceeded.
B
BaFin
Bundesanstalt für Finanzdienstleistungsaufsicht — the German Federal Financial Supervisory Authority. N26 and Trade Republic are licensed by BaFin. Comparable to FINMA in Switzerland.
Banking license
An official authorization granted by a financial regulator (e.g., FINMA, BaFin, FCA) allowing a company to accept deposits and provide banking services. Banks with full licenses offer deposit insurance and stronger consumer protections than e-money institutions.
BLKB
Basellandschaftliche Kantonalbank — a Swiss cantonal bank and the parent company of radicant.
C
Cantonal bank
A Swiss bank that is majority-owned by a Swiss canton (state). They typically offer state guarantees on deposits. Many Swiss neobanks partner with cantonal banks (e.g., Neon and Zak partner with Hypothekarbank Lenzburg and Bank Cler respectively).
Challenger bank
Another term for a neobank or digital bank — a newer, technology-first bank that challenges traditional financial institutions by offering lower fees and better apps.
Compound interest
Interest calculated on both the initial principal and the accumulated interest from previous periods. Over time, compound interest grows your savings faster than simple interest — a small rate difference can have a large impact over 10+ years.
Crypto support
The ability to buy, sell, hold, or transfer cryptocurrencies (such as Bitcoin, Ethereum) directly within a banking app. Neobanks like Yuh, Revolut, and N26 offer crypto trading.
Currency exchange rate
The rate at which one currency is converted to another. Neobanks often use the mid-market (interbank) rate — the "fair" rate you see on Google — while traditional banks add a markup. Banks like Wise specialize in offering the real mid-market rate.
D
Debit card
A card linked directly to your bank account. Payments are deducted immediately from your available balance. Most neobanks offer a free Visa or Mastercard debit card.
Deposit insurance
A guarantee that your money will be protected up to a certain amount if the bank goes bankrupt. In Switzerland (FINMA), deposits up to CHF 100,000 per bank are protected. In the EU (under the DGS), up to €100,000 per bank is protected.
Digital bank
A bank that operates entirely or primarily through digital channels (mobile app, web) with few or no physical branches. Synonymous with neobank or online bank.
E
eBill
A Swiss electronic billing system that delivers invoices directly into your e-banking interface. You can view and pay bills without entering payment details manually. Supported by most Swiss neobanks (Neon, Zak, Yuh, radicant).
E-money institution
A regulated entity that can issue electronic money and provide payment services, but is NOT a full bank. E-money institutions do not accept deposits in the traditional sense and your funds may not be covered by deposit insurance. Always check the license type before depositing large amounts.
F
FCA
Financial Conduct Authority — the UK financial regulator. Wise and Revolut's European operations are regulated by the FCA.
FINMA
Eidgenössische Finanzmarktaufsicht — the Swiss Financial Market Supervisory Authority. All banks offering services in Switzerland must be licensed or recognized by FINMA. Swiss neobanks like Neon (via Hypothekarbank Lenzburg), Zak (via Bank Cler), and Yuh (via Swissquote) all operate under FINMA oversight.
Free account
A bank account with no monthly maintenance fee. Many neobanks (Neon, Zak, Yuh, N26 Standard) offer free accounts, earning revenue through premium plans, FX fees, or affiliate partnerships.
Freemium
A pricing model where a basic account is free, but premium features (higher ATM limits, travel insurance, metal card, better interest rates) require a paid subscription. Common among neobanks: Revolut Standard is free, Premium costs ~CHF 10/month.
FX fee
Foreign exchange fee — a markup charged when you spend or transfer money in a foreign currency. Traditional banks charge 1–3%. Neobanks often charge 0–1.5%, or offer some free FX up to a monthly limit. Wise offers the closest rate to the mid-market.
G
I
IBAN
International Bank Account Number — a standardized format for bank account numbers used internationally. Swiss IBANs start with "CH" and are 21 characters long. EU IBANs vary by country (DE, LT, NL, etc.). Many Swiss employers require a Swiss (CH) IBAN for salary payments.
Instant transfer
A payment that arrives in the recipient's account within seconds, at any time of day. SEPA Instant Credit Transfer (SCT Inst) is the EU standard. Swiss neobanks use their own instant transfer networks (Zak Instant, Neon Instant).
Interest rate
The percentage of your deposit paid to you annually as a reward for keeping funds in a savings account. Neobank savings rates in 2025 range from ~0% (basic accounts) to 4.25% (Revolut Metal), 3.75% (Trade Republic), and 1.3% (Zak) for Swiss accounts.
J
Joint account
A bank account shared between two or more people. Both account holders can view balances, make payments, and access cards. Available at N26 (dedicated IBAN), Bunq, and Zak (shared expense pots).
K
KYC
Know Your Customer — the verification process banks use to confirm your identity when you open an account. Most neobanks do this digitally via a photo ID scan and a selfie or video call, taking 5–15 minutes.
M
Mastercard
One of the two major global card networks (along with Visa). Most debit and credit cards in neobanks run on Mastercard or Visa rails. The network determines where the card is accepted, not the bank.
Monthly fee
A recurring charge for maintaining a bank account. Many neobanks offer a free base tier. Paid plans typically cost CHF/€3–20/month and include perks like higher ATM limits, travel insurance, or better exchange rates.
Multi-currency account
An account that lets you hold, send, and receive money in multiple currencies without constantly converting. Useful for travelers, expats, and freelancers. Leading options: Wise (50+ currencies), Revolut (30+ currencies), Yuh (13 currencies).
N
Neobank
A digital-only bank (or bank-like fintech) that provides banking services primarily through a smartphone app with no or few physical branches. Neobanks typically offer lower fees, faster account opening, and more innovative features than traditional banks.
NFC
Near Field Communication — the short-range wireless technology that enables contactless payments. When you tap your phone or card at a payment terminal, NFC is used. Most neobank cards and apps support NFC payments.
P
Physical card
A traditional plastic or metal debit card sent to your home address. Most neobanks issue free physical Mastercard or Visa cards within 5–10 business days of account opening.
Pillar 3a
Swiss private pension pillar (Säule 3a) — a tax-advantaged retirement savings account for Swiss residents. Contributions reduce taxable income. Offered within neobanks by Yuh, Kaspar&, and Zak.
PricingType
The pricing model of a bank: FREE (no monthly fee), FREEMIUM (free tier + paid plans), or PAID (always requires subscription).
Q
S
Savings account
A bank account designed for storing money and earning interest. Separate from a current/spending account. Neobanks often offer virtual savings "pots" or "spaces" within the same account (e.g., Neon Spaces, N26 Spaces, Zak Töpfe).
SEPA
Single Euro Payments Area — a European initiative that standardizes euro-denominated bank transfers across 36 countries. SEPA transfers are fast (1–2 business days), low-cost, and widely used by EU neobanks. Note: Switzerland is part of SEPA despite not being in the EU.
SEPA Instant
SEPA Instant Credit Transfer — euro transfers that arrive within 10 seconds, available 24/7. Increasingly supported by neobanks across Europe. Bunq, N26, and Vivid support SEPA Instant.
Swiss IBAN
A bank account number starting with "CH" — issued by a bank with a Swiss banking license. Required by many Swiss employers for salary payments and for Swiss direct debits (eBill, TWINT top-up, etc.). Available from Neon, Yuh, Zak, Yapeal, Kaspar&, and radicant.
SWIFT
Society for Worldwide Interbank Financial Telecommunication — the global network used for international bank transfers outside of SEPA. SWIFT transfers are slower (1–5 business days) and carry fees (typically CHF 10–30 per transfer). Needed when sending money to non-SEPA countries (USA, China, etc.).
T
TWINT
Swiss mobile payment app for peer-to-peer transfers and in-store payments. The dominant mobile payment method in Switzerland. Supported by Yuh and radicant; notably absent from Zak (a common complaint).
U
UTM tracking
URL parameters (utm_source, utm_medium, utm_campaign) added to affiliate links to track where a bank signup came from. Neobanks use this to attribute sign-ups from comparison sites.
V
Virtual card
A digital-only card number (with CVV and expiry) that exists only in your app. Useful for secure online shopping. Some neobanks (Revolut) offer single-use virtual cards that change the card number after each transaction for maximum security.
Visa
One of the two major global card networks (along with Mastercard). Most neobank cards run on Visa or Mastercard rails. Zak and Revolut use Visa; Neon and Yuh use Mastercard.