Banks help organizations and individuals achieve their financial objectives. Will tomorrow’s banking sphere be dominated by neobanks?
The question is, which kind of bank is going to outperform its other counterparts and win the financial race. We say this because technology has completely disrupted the banking world. From digital payments, to Fintech and now Neo Banks, each new technology is raising the bar higher.
As several studies suggest, the global Fintech market is going to hit $460 billion by the end of 2025 recording the highest growth rate of 11.67%. Amid the biggest Fintech trends and amidst such technological advancements, the influence of Neobanks in the banking ecosystem cannot be denied.
Popularly known as the ‘Challenger Banks’, these Neo Banks are relatively a new addition to the banking ecosystem. Neo simply means new and they offer a unique and modern interpretation of banking services. Against their traditional counterparts, Neobanks do not rely on their physical branches and happily operates everything online. Simply put, Neobanks are digital-only financial institutions offering a range of services. Neobanks heavily invest on technologies, pay attention to Ai-powered tools, chat bots and so on with the only aim of making banking easy for the consumers.
Due to the heavy competition and lack of resources in the traditional banking industry, these Neobanks are doing well because they have a lead in serving customers with new-age solutions. Start-ups like Revolut and Monzo are already giving tough competition to physical banks and many other start-ups like them are gaining traction all around the world. Neobanks are going to have a bright future ahead.
Some of the popular global Challenger Banks operating successfully:
Launched in 2017, Monzo operates in the UK and US. The bank ranks among the top 4 challenger banks in the world and it has earned this place due to its fair and transparent banking system. With a market share of more than 16%, Monzo is set to fulfil all your financial dreams.
Revolut was launched in London, but it is growing rapidly in Europe and Asia-Pacific regions. Revolut is one of the best players in the neobanking sector and it has crossed over 6 million customers in just 4 years.
Chime is a US-based digital bank launched in the year 2013. At first look, you may find Chime to be a minimalist kind of a banking app, but some of its innovative features may outperform all the other challenger banks in the world. It has its unique rounding up feature that adds to the savings of the user.
Most of the Neobanks belong to a specific region, but Crypterium is one such bank available worldwide. If digital currencies is all you need, Crypterium is the answer to it. Crypterium is a challenger bank helping you buy, store, spend and cash out all kinds of cryptocurrencies with great ease.
Launched in 2014, this Latin American bank is making every other bank sit at the edge of the competition. Nubank is one of the best examples of neobanks in the region. Located out of Brazil, Nubank is serving its clients looking for simplified finance in their lives. Currently it is holding around 9 million accounts with a market evaluation of $4 million.
Varo Bank claims to offer simple and effective digital banking services to its customers. It is a bank to cater to everyone’s daily needs and it is living up to the expectations of the customers. It is a perfect solution to receive money on time, increase savings, enhanced security features and much more.
If you’re looking forward to efficient and hassle free banking, Grasshopper is seen as a good solution. Grasshopper is the first digital bank launched in the US and the various features of the neobank are easy account opening, straight pricing, multi-factor authentication, best-in-class credit card offers and so on.
In 2019, Monese had a 7% market share in the digital banking industry and was ranked among the top 4 challenger banks in the world. With a more than 14,00,000 customer base, Monese is recording 100% growth year on year. Though it is only available for European nationals, this online banks aims to cut the long dated bureaucracies present in the banking sector.
Yolt offers one of the best ways to manage your funds in the UK, digitally. Start your account, stay on track, spend smart and see your savings help you shape your future. One of the good things about Yolt is that, you can integrate your other bank accounts to the app and thus, it makes easier for anyone to manage funds at one place.
We are observing an influx in the demand and dependency on Neo Banks across the globe. With the help of Neo Banks, consumers can save time on going to brick-and-mortar branches