A global deep dive
Neobanks offer innovative features and offerings that are different from traditional banks including fast account opening, free debit card, instant payments, cryptocurrencies, lower costs, mobile deposits, P2P payments, mobile budgeting tools, user-friendly interfaces, etc.
Growth of neobanks over the years
Neobanking startups have been growing steadily over the last few years. The startup activity in this space started around 2004 and gathered pace after 2011. Here are some interesting observations:
Around 50% of the startups were founded in 2016 and 2017.
Before 2010, there were 6 such startups; by 2015, the number rose to 28.
However, in the last three years, the number of neobanks established has increased to 45.
Neobanks: How is their service offering different from traditional banks?
- Digital Onboarding/Account Opening
Neobanks offer simple and fast online account opening compared to traditional banks.
- International Payments/Remittances
Neobanks offer the usage of their debit card in foreign countries for no fees and at live exchange rates.
- Money Tracking/Account Aggregation
Neobanks can simplify money tracking and account aggregation.
- Lending/Credit Products
Neobanks can provide credit products at lower charges and interest rates compared to traditional banks.
With a view to understanding this segment even further, this report on neobanks was prepared by MEDICI as a deep-dive study that presents the pulse of underlying global currents in the challenging landscape banks compete in, around the world. Read on to learn about how neobanks are emerging as the new wave of disruption with unprecedented success stories in banking in terms of geographic growth, customer acquisitions, valuations, and more. In this report, you will uncover the story of the evolution of neobanks across the world, profiles of noteworthy neobanks, business models, core technologies, and partnerships.