Boursobank recorded 92 million euros of net profit in the first quarter, about one-sixth of Société Générale's historical network profit, putting it on track for its 300 million euro annual target. Jefferies analysts value it at 14 billion euros, and it has 8.9 million customers after cutting some welcome bonuses.

An online bank has no physical branches and handles everything remotely. Neobanks are a generation question: they were born around 2015, like N26 and Revolut. Otherwise both work similarly, maximising customer autonomy and self-service through the mobile app, and they set a new standard of simplicity for traditional banks.

McKinsey calculated that online banks and fintechs enrolled 15 million new clients in France from 2021 to 2025, led by Revolut and Boursobank. Over the same period traditional bank networks collectively lost more than 2 million clients net, meaning the difference between customers won and customers who left.

Price matters, but customers are also more mobile, connected and autonomous, want quick digital answers and are drawn by the innovative experience. Under-35s increasingly advise their families on financial services and favour digital players, a trend in Bain & Co.'s study, and parents opening accounts for children increasingly pick neobanks.

The main bank is where a client's largest flows and most products sit: current account, card, credit, insurance and investments. Customers now fragment their relationship, picking the best provider for daily banking, savings, credit, trading or crypto. Revolut aims to become customers' main bank, housing salaries, savings and loans.

Lending is not their original DNA: Boursorama focused on investment and Revolut on payments abroad. Loan-to-deposit ratios are around 30% for Boursobank and 6% for Revolut, against 80-90% at Société Générale. Mortgages pay little, are complex to regulate and carry high capital costs, though they build long, loyal relationships.

In April Revolut was fined around 11 million euros by the Italian competition authority for illegal, aggressive and deceptive commercial practices in some investment services. Revolut said it would appeal. According to the Financial Times, the ECB also stopped it launching new products in the euro zone over risk control and compliance gaps.

Network banks still earn over 90% of sector revenue but are accelerating digitalisation. Crédit Agricole launched a 100% online mortgage, Crédit Mutuel's CIC offers a digital agency with a dedicated adviser, and banks are adding free offers, beyond-banking perks like streaming subscriptions, and influencer partnerships.

France has 49 branches per 100,000 inhabitants, against 37.1 in Spain, 34.2 in Italy and 23.4 in Germany. ING, the largest Dutch bank, has only 30 branches nationwide. Mutualist banks rely on proximity but are rationalising, moving advisers to larger branches or remote centres.

The most emblematic is Frédéric Oudéa, former head of Société Générale. Revolut's current head for Western Europe, Béatrice Cossa-Dumurgier, came from BNP, and its Western Europe risk director came from the postal bank. Traffic also runs the other way, with Revolut alumni hired by large American banks.