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Macro Trends Facilitating the Rise of Neobanks and Other FinTechs

Over the past decade, neobanks such as Starling and Bunq have been gaining market share from traditional banks at a rapid rate. A 2019 report by AT Kearny found that European neobanks gained more than 15 million customers between 2011 and 2019 – by 2023, neobanks are projected to have up to 85 million customers over the age of 14, which is equivalent to 20% of Europe’s population. This article analyzes how changes in the way consumers spend and save have been (and will continue to be) important factors in driving the growth of neobanks and FinTechs that challenge traditional retail banks.

One gradual but important shift that is currently occurring and has been ongoing over the past few decades is the shift of what were previously single payment acquisitions into either multi-payment plans or subscription services. In the UK, 91% of new cars purchased b ...

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