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Neobanks Targeting Niche Customer Segments: A Deep Dive

Neobanks are viewed as a direct challenge to the status quo of the established traditional banks, with its lower cost structure and hyper-personal customer experience. Unlike their traditional counterparts, neobanks aren’t burdened by ancient legacy systems, complicated organizational structures, and heavy regulatory requirements. As wonderful as it sounds with all the advantages and features compared to traditional banking, neobanks face a fair share of difficulties in the market acceptance of its products. Instead of going head-on with traditional banks, most neobanks enter the market by focusing and targeting niche customer segments, specifically millennials who are likely to be keen on the gig economy and tech-savvy. The flexible and inclusive nature of neobanks also enables them to capture the unbanked population, SMEs, and thin-file customers who are often overlooked by the current traditional banking business.

The Gig Economy

The ‘gig economy’ refers to the working culture of freela ...

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