What is a Neobank?

Traditional Businesses and Internet Businesses
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Munadil Shafat
Student (MBA), Bangladesh

What is a Neobank?

🔥NEW Neobanks are new generation banks which offer banking services over a completely digital platform, in particular mobile apps. Unlike traditional banks, they don't have a brick-and-mortar setup. Thus, users of such banks (only) interact with the bank's mobile apps (or website) to avail banking services.
Although internet banking isn't a new concept, the concept of neobank is still new (thus the word 'neo').

Neobank Business Model

While Internet banking is typically offered by traditional banks to its customers, Neobanks are founded independently of any traditional bank. They typically partner with traditional banks to offer banking services. Using a neobank, customers can avail traditional banking services (deposit, withdrawal, payment, loan etc.) as well as certain niche services usually at a much lower cost that traditional banks cannot offer.

Neobank Examples

Because of gaining extensive funding in recent years, Neobanks have become a buzzword in fintech industry. There are hundreds of players right now in the industry. N26 (Germany), Chime (US), Revolut (UK), Tinkoff (Russia), Nubank (Brazil), just to name few.

Neobank Success Factors

In a growing cashless society powered by smartphone-savvy generations, neobanks are challenging traditional banks with its unique customer-friendly smart banking experience and data-driven, extremely cost-effective business model. They are also called challenger banks for that reason.
Please add below other useful facts regarding NEOBANKS so we get a good overview.
Statrys Team (2020), "What are Neobanks?"
Rao, H. (2021)"What is a Neobank? Everything You Should Know", Razorpay
Crasulla (2019), "Neo Banks: Explaining the New Term in Digital Banking", Medium


Jaap de Jonge
Editor, Netherlands

Properties of Neobanks

Neobanks all have one thing in common: they operate exclusively online or via apps. However, their ... Sign up


Similar Terms Like Neobanks

They are also referred to as online banks, internet-only banks, virtual banks, digital banks, and "f... Sign up

Jaap de Jonge
Editor, Netherlands

Neobanks are Technology-oriented

New technologies such as big data, artificial intelligence, robotization, and machine learning are w... Sign up

Armand Zunder
Entrepreneur, Suriname

Neobank Start Up

What do you need to start a Neobank?... Sign up

Jacques Strydom
CEO, South Africa

New Banks Should Remember the Human!

I am 100% pro these new banks as they fit the profile of the current client profile. I would howeve... Sign up

Management Consultant, India

Are There Any Bank Classifications?

As Jaap de Jonge explained "…offerings vary and the same applies to the degree of their bank permits... Sign up

Jaap de Jonge
Editor, Netherlands

Classifications of Banks Based on Their Bank Permits and Restrictions

@Meheresh: Interesting question. I am unaware of such standard classifications for banks showing at ... Sign up

Ivan Kohlinsky
Management Consultant, United Kingdom

Interesting Development - Hopefully Well Regulated and Well Understood by Potential Customers

I hope that these Neobanks either pay directly for their customers' use of other organisations (i.e.... Sign up


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