Week Six: Has minimalist design gone too far? (N26 and Freetrade)
The blog is back! Hooray. This week I am looking into a challenger bank called N26, and Freetrade, an app aiming to unlock share trading for the masses.
Firstly, N26. If you haven’t heard of them before, N26 is one of the larger challenger banks, based out of Germany, and boasting over 2.5 million customers across 24 European markets. Like the others I’ve reviewed they are a mobile only bank, but unlike the others they have a different focus: simplicity. N26 has no bells and whistles, just simple, app-based banking.
I think this simplicity is part of the reason why this blog took so long to write. Maybe it’s because I’ve been spoilt by awesome features from the other banks I’ve reviewed but I found the N26 experience a little bit … boring. Hence the three week delay in releasing this episode. (Sorry about that).
I know that sounds kind of weird, the idea of a banking app being boring. Like, aren’t all banking apps boring by nature? They certainly aren’t meant to be fun. But there was something about N26 that just didn’t excite me like the other apps I used.
The N26 experience
Overall, N26 did the majority of the core mobile-banking stuff well. The app has a VERY minimalist design, with a strong focus on icons over text removing lots of visual clutter on the screen, but this arguably comes at the expense of feature discoverability. This could be a symptom of their presence in 24 countries – relying heavily on icons instead of text makes it more multilingual.
But this minimalist approach also extended to a minimal use of colour. I often found myself scrolling through my transactions on a completely monochromatic screen and it made an already dull task even more so. Look at the screenshot below — nearly the entire screen is in black and white.
Similarly it felt like a few critical yet basic features were missing. N26 only supports the ability to transfer to others banks via a traditional bank transfer, which I thought was weak considering they are nearing 3 million customers. Without an easy way to request money or send it to friends, I was back to the old ways of sending over sort codes and account numbers — not fun and not any better than my old bank.
What it does well however, it does very well. Like Starling, N26 has chosen the term ‘spaces’ for its saving feature, and they work really well and look really clean, definitely an improvement on Monzo’s pots. I like that they are given their own space on the nav bar, it encourages you to visit them on a daily basis. (One small downside is that they limit you to a set amount unless you upgrade your account, similar to Revolut.)
Spending and transaction categorisation was solid, and the UI for splitting the spending out looked really good, using a super-interactive donut chart to display your spending for the month. Whilst the design is minimal, it makes really good use of animation throughout which really makes the app feel alive compared to Monzo and Revolut.
Oh and did I mention it has a fucking see-through bank card. That is hella cool.
N26 – the verdict
I’m quite confused by N26. For a bank with such a huge user base, it is missing some critical features that I now take for granted, like easy peer-to-peer transfers. This may be due to it opening in locations (like Germany) without too many other challenger banks and therefore too much competition, but I expected more. Design wise I found it quite plan, but after talking to a few other friends with the app I think my thoughts on the design may be uncommon, most people seemed to really enjoy the simplistic interface.
Personally, I think there are banks out there that does what N26 does, and does it better. However, if you are in a location not served by the other challenger banks and are looking to dip your toe into the mobile-bank scene, I would recommend checking N26 out.
My thoughts on Freetrade
The second app I am reviewing this week is Freetrade, and my friends will know it’s no secret that I absolutely love Freetrade, and haven’t shut up about it. The concept is quite simple: open up investment in stocks and shares to everyone by enabling commission-free trading. And it does it bloody well.
The app is very much in its infancy, but the features it currently boasts are powerful. You can search from hundreds of UK and US stocks as well as funds, ETFs and other investment vehicles. After topping up your account from a debit card, you can buy and sell shares commission free, as long as you are willing to wait until 4pm for the trade to be executed. If you’re in a rush and want to execute the trade immediately, you can do so from as little as £1.
As you put more money in, and purchase more shares, it builds you your own portfolio graph, showing the overall value of your shares rising and falling, along with detailed breakdowns for each of the stocks you own. You can also open an ISA with the account, so that any money you make from Freetrade is tax free. Smart.
I’ve been using it for nearly two months now, and I have to say, it both works really damn well, and is really damn fun. I’m only playing around with about £50s worth of shares at the moment, but the app is succeeding it getting me checking into it on an almost daily basis, seeing the value of my shares dip and dive.
I also gained an almost Wolf of Wall Street sized ego when my £15 investment in G4S shares rocketed 16% over night – pure luck I’m sure but didn’t stop me pouring more cash into my account and investing it into a sandwich manufacturer on a gut feel (I’m up 5% so don’t judge).
Despite a strong set of core features there are definitely a few areas I would love to see improved. There is not yet a way to save or ‘favourite’ stocks you are interested in investing in further down the line, or that you just want to watch. Similarly filtering stocks and shares is done only by name and not stock market or currency, which means discovering new shares involves scrolling alphabetically through the entire list. Adding these would make the app a one-stop-shop for all my share related needs, which would definitely lead to me visiting it more regularly than I already do.
However, they have to be quick. Robinhood, the commission free trading platform that has taken the US by storm, has begun stealthily recruiting in the UK in preparation for their launch this side of the pond. Robinhood has over 6 million accounts in the US, with an estimated market cap of over $5.6billion – definitely big enough and experienced enough to make Freetrade nervous. Likewise, Revolut announced their plans to bring commission free trading to their 3 million customers. Competition for customers in this relatively tranquil part of Fintech is going to heat up massively over 2019, and I can’t wait to see what new innovation that brings to consumers like us. Until something better comes along however, I am more than content using Freetrade to trade my sandwich shares.
Next ‘week’: the Finale
I have referred to these blogs as ‘weeks’ for far too long now but have failed horrendously to stick to a week by week posting schedule, so I can only apologise. But next ‘week’ is the end of this mini-series, and I will be looking back at the last few months, announcing my winner of the GBBO and walking you through my new sweet money saving setup.
I’ll also be talking about the future of the blog, and the further apps and topics I want to cover.
As always, thanks for reading. 🤓
