UK-based neobanks Monzo and Revolut give banks examples to follow. Both offer a free tier and several paid ones with clear price points. Instead of being product-focused, these tiers offer an array of features that aim to simplify customers’ financial management, such as account aggregation and custom spending categories. Giving customers more flexibility and control ultimately benefits banks.
Report
| Jun 28, 2024
With their respective commerce media network announcements in spring 2024, Chase and PayPal joined buy now, pay later (BNPL) fintech Klarna and neobank Revolut in the burgeoning world of FMNs. Financial services companies boast their cross-merchant, holistic view of consumer spending behavior as a key differentiator to advertisers.
Report
| Aug 8, 2024
Our third annual study reveals which account opening features US consumers value most, based on our exclusive survey.
Report
| Jul 31, 2024
Article
| Jan 30, 2025
Article
| Jan 23, 2025
Neobanks and banking-adjacent apps are crowding out general-purpose prepaid cards. Players like Cash App are attracting consumers who had previously relied on prepaid cards to make non-cash purchases and pay bills. ĢAV 23 million US adults use digital-only banks, per our forecast.
Report
| Mar 25, 2024
The reception: Internally, the bank reports a fourfold increase in customer engagement compared to US digital-only banks, based on per-client deposits and product subscriptions. That’s likely because Berkshire’s perks are successfully incentivizing both. Key takeaways: Berkshire’s marketing strategy has incorporated some unique perks that could be attractive to its target market—Gen Zers.
Article
| Nov 13, 2024
Chart
| Feb 1, 2025
Source: Federal Reserve Banks; TransUnion; Experian Data Quality; ĢAV
Championed by neobanks including Revolut and Current, this format offers banking products like debit cards and savings accounts. Teen accounts are linked to parents’ accounts, giving them oversight and control of their teen’s spending. This maintains guardrails while giving teens some independence. Teen banking rolled into existing apps.
Report
| Apr 16, 2024
Neobanks, buy now, pay later providers, and incumbent banks should model on Intuit’s tool if it proves successful. Part of that success will depend on how Intuit addresses consumer data privacy concerns. Consumer and merchant adoption of genAI-powered chatbots will open new revenue doors for payment providers.
Report
| Mar 22, 2024
Chart
| Jan 20, 2025
Source: FinTech Global
Article
| Dec 17, 2024
Article
| Dec 13, 2024
Despite the popularity of tech-forward neobanks in the UK, customers lag in their adoption of AI bank chatbots. Widespread reliance on phone service and regulators’ worries about security vulnerabilities have inhibited uptake. By the end of 2026, 27.6% of UK adults will use bank chatbots.
Report
| Jan 16, 2024
Digital-only banks or those that have closed many locations should consider covering customers’ ATM fees, at least up to a certain threshold.
Article
| Oct 18, 2024
The neobank claimed that Meta was falling “woefully short” in addressing social media scams. Banks argue that if tech companies like Meta were more proactive in sharing fraud-related intelligence with FIs, they could help identify and prevent scams more effectively.
Article
| Oct 8, 2024
In recent years, neobanks Monzo, Revolut, and Starling have acquired about 20 million customers combined, per Fintech Futures. But traditional banks Nationwide, Barclays, and Lloyds also gained customers that switched accounts. The rollout disclaimer: UK industry observers believe the launch of open banking isn’t what it could have been.
Article
| Sep 24, 2024
The share of Gen Z digital-only bank account holders will grow 29.5% compounded annually from 2023 through 2026, which means neobanks have a real chance to win out. Digital gaming is also knocking. Gamers will tap into digital wallets and transactions in games like Roblox and Minecraft. But digital doesn’t mean financially literate.
Article
| Mar 1, 2023
The experience and brand presence that Wall Street lenders are able to offer savers is a major competitive advantage over neobanks and fintechs, especially after recent regional bank failures. The speed and ease with which consumers can open accounts is crucial.
Article
| Apr 19, 2023
Canadian PFM fintech Hardbacon has closed its doors, and recently acquired US neobank PrizePool is turning off its consumer app. How we got here: This trend is ongoing, but reached an inflection point when Mint shut down its app, citing an inability to make enough money, per The Cut. Many factors are creating a challenging environment for these apps:.
Article
| Sep 6, 2024
Big Tech, neobanks, and payments apps loom as stiff competition. Despite their tech savvy, Gen Zers find financial preparedness challenging. Gen Zers’ credit needs are evolving. Social media has changed how to reach Gen Z. How should banks meet the Gen Z challenge? Prioritize messaging through social media channels.
Report
| Feb 27, 2023
Customers may have the most difficulty differentiating between neobanks and potentially fraudulent digital entities. Editor’s Note: A previous version of this article left NCUA out of the list of regulatory entities in the US and Canada that oversee credit unions and banks.
Article
| Sep 10, 2024
Trend 3: Neobanks are nearing the end of their runway. Digital challengers faced a lack of funding in 2022 as investors favored profitability over growth. For most neobanks, profits remained elusive and the economic climate grew increasingly harsh. In the coming year, neobanks will need to turn to new sources of revenue, like lending and credit cards, to flirt with profitability.
Article
| Jan 3, 2023
Some neobanks have achieved profitability, but many are still going through fundraising rounds. But the venture capital for these new fintechs dropped 42% in 2024, per The Financial Brand. This would be a good time for FIs to launch highly targeted digital products for Gen Zers and win a larger share of new customers.
Article
| Jun 6, 2024
Many will favor digital-only accounts: We expect Gen Z digital-only bank account holders to almost triple between 2020 and 2023—and their total will more than double to 10.0 million between now and 2026. Focusing on digital commerce can help debit providers boost Gen Z's debit usage. Debit is capturing over one-third of online purchase volume as customers embrace the tech online.
Report
| May 22, 2023