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This fourth annual study ranks the four largest US neobanks by customers based on their support of 47 emerging mobile banking features, weighted by consumer demand for each feature.

US financial institutions (FIs) will face low digital account growth over the next few years. But some customer groups will have higher growth potential than others, and FIs must understand how to build relationships with them.

Our second annual study of US banking consumers reveals the key characteristics that make each generation鈥檚 customer journey unique. Banks can tailor their acquisition and retention strategies accordingly.

Our exclusive survey data reveals what鈥檚 shaping US banking consumers鈥� customer journeys today. Banks can use these five charts to identify opportunities to improve customer acquisition and retention.

In Brazil, 63.2% of consumers use mobile banking at least once a week鈥攆ar outweighing the 49.7% of US consumers who do so, per a 2023 PYMNTS survey. Even lower-income consumers are frequent digital banking users. For example, Brazilians in the low-income bracket were more engaged with financial apps than their counterparts in the US, per PYMNTS.

Monzo Split also helps the neobank reach new customers when users share links among friends and family, building brand awareness and potentially attracting new customers. We forecast Monzo鈥檚 bank account holders will total 5.8 million this year, growing 7.6% YoY and accounting for 12.6% of all UK digital banking users.

While the segment will account for only 0.4% of US digital ad spending in 2026, this growth reflects FIs鈥� eagerness to monetize their first-party data. Click here to view our full forecast for US financial media network ad spending. Ad revenues are looking increasingly attractive to FIs:. Margins for traditional financial products are shrinking.

The service advances Block鈥檚 goal of 鈥渂anking our base鈥� and could drive Cash App adoption.

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鈥檚 likely because Berkshire鈥檚 perks are successfully incentivizing both. Key takeaways: Berkshire鈥檚 marketing strategy has incorporated some unique perks that could be attractive to its  target market鈥擥en Zers.

US banking digital ad spending growth will rebound dramatically in 2024, but tougher times lie ahead. Understanding the nuances of consumer behavior will be essential to boosting ad impressions.

It claims to be one of the few US banks providing this service, per PYMNTS, though TurboTax now offers an early refund to any US bank account for a $25 fee, per Intuit. Varo Bank and Chime both offer free federal and state filing services through their apps, which could appeal especially to younger customers, per CNET and their websites.

A growing number of startups are specializing in serving this market, including neobanks Alpian (Switzerland), Monument Bank (UK), and Onyx Private (US). Incumbents like HSBC, CIBC, and JPMorgan Chase have also launched mass affluent products. Alternative data is the key to identifying mass affluent consumers.

To learn more about the emerging mobile banking features customers want most, read our 鈥淯厂 Mobile Banking Emerging Features Benchmark 2024鈥� report. This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends.

Our third annual study reveals which account opening features US consumers value most, based on our exclusive survey.鈥�

The law enforcement agency is seeking civil penalties against the neobank, replacing the FTC鈥檚 original lawsuit.

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鈥� financial management, such as account aggregation and custom spending categories. Giving customers more flexibility and control ultimately benefits banks.

Where this leaves competitors: Some US banks are trying to build inroads in Latin America. To do so successfully, they'll need to:. Focus on offering personalized financial products that meet the evolving needs of tech-savvy users in Mexico and Brazil.

The FTC鈥檚 lawsuit against the neobank alleges that it misled and deceived consumers.

Neobanks, buy now, pay later providers, and incumbent banks should model on Intuit鈥檚 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.