How are Neobanks doing?

Neobanks are currently facing some of the same difficulties as banks. The problems include cooling funding, rising customer acquisition costs, and investors increasingly focused on profits. As the hypergrowth for Neobanks has cooled, a small group has emerged as leaders. These Neobanks include Revolut, Monzo, and Chime. What can banks learn from this changing landscape? The blog post examined in this episode offers five lessons. They include 1) digital convenience always wins customers, 2) Profitability is hard, 3) trust and retention still favor relationship banking, 4) reliable SMB tools are becoming table stakes, and 5) this is not a signal to slow digital investments. Finally, we review a list of the top 10 Neobanks in the U.S. and globally. This episode reviewed a blog post from PCBB titled “Lessons for CFIs from a maturing Neobank market.” A link to the blog post is included below.

Link: Lessons for CFIs from a Maturing Neobank Market