Neobank

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A neobank is a type of direct bank that is 100% digital and reaches customers on mobile apps and personal computer platforms only.[1][2] Neobanks do not operate traditional physical branch networks. Neobanks are technology-driven and may adopt machine learning and artificial intelligence technologies whilst not being constrained by legacy systems of traditional banking competitors.[3][4]

History[edit]

The term neobank first became prominent in 2017 to describe fintech based financial providers that were challenging traditional banks. There were two main types of company that provided services digitally, companies that applied for their own banking license and companies that partnered with a traditional bank to provide those financial services.[5]

Notable neobanks[edit]

Neobank Region
Tyro Payments Australia
Volt Bank Australia
Xinja Australia
n26 Germany
Tinkoff Bank Russian Federation
Atom Bank United Kingdom
Monzo United Kingdom
Revolut United Kingdom
Starling Bank United Kingdom
Simple United States

References[edit]

  1. ^ CrouwdfundUp team. "What is a Neo Bank and how are they disrupting traditional banking models?". Medium.com. Medium. Retrieved 31 December 2018.
  2. ^ "The unstoppable rise of neobanks". World Finance. World Finance. Retrieved 31 December 2018.
  3. ^ Popper, Nathaniel. "The 'Neo-Banks' Are Finally Having Their Moment". New York Times. New york Times. Retrieved 31 December 2018.
  4. ^ Crosman, Penny. "First wave of neobanks resets for new offensive". American Banker. American Banker. Retrieved 31 December 2018.
  5. ^ "Mapping the Global NeoBank Landscape". Techfoliance. January 19, 2017.