Is Neobank and cash generally mutually exclusive?

Question

A neobank (also known as an online bank, internet-only bank, virtual bank or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch networks.

Is there no Neobank with free and convenient cash withdrawal? It seems such an offer does not exists.

All the traditional banks I know have a shortcoming in self-service (it's called with buzzword digitalization). You can only do a few things yourself, most of them have to be done by a clerk.

So-called Neobanks offer much more self-service and have more state of the art IT.

I am a great lover of cash money. It seems that all Neobanks do not want cash lovers as customers. They have very high fees for regular cash withdrawals.

Is Neobank and cash generally mutually exclusive?

Answer 1

The terms and conditions depend a lot on the country, even with neobanks/fintechs but all those I know actually offer free and convenient withdrawals.

International fintech startups like Revolut or N26 tend to have limits on the number of free withdrawals per months that are on the low side but you do get at least 3 a month for free, which is enough to get plenty of cash. In my experience, online banks spun off a traditional bank sometimes have higher limits for cash withdrawals, e.g. 10 withdrawals per week for a total up to €500 to €1600 depending on income with Fortuneo in France.

Since you tagged your question “Switzerland”, it's important to note that Switzerland (and a couple of other countries like Austria) has become a bit of an outlier in Europe in the extent to which cash is used. If you are expecting to get tens of thousands of Swiss Franc or make a large purchase by cash, it's going to be difficult but Neon and Zak do offer at least a couple of free cash withdrawals a month. Beyond that, the fees aren't that high either.

Answer 2

Decades ago when before online banks existed, customers either had to go to a teller during banking hours to get cash, or they had to go to their grocery store and buy a pack of gum, and then writer a check for more money than the purchase prices. The cashier would then give them change.

Most banks today are a mix on brick and mortar and online. Truth be told It is been years since I was in the lobby of my bank. So much of my money never exists as physical cash. Between the bills I pay online, the credit cards I use, and the ATM card I never need to visit the building. If I need cash I go to the ATM, or use the one credit card I have that allows me to get cash if I buy a pack of gum...