In recent years, more and more consumers are creating accounts and transferring their money through Neobanks. Personally I use Revolut and I am very happy. I trust it more than the Greek banks.
Neobanks are digital banks that do not operate physical stores or rely on traditional banking. Simply put, they are mobile applications.
These companies, such as Revolut and N26, are evolving into full function digital banks, developing special features such as overdraft protection and enrollment incentives, creating an increasingly competitive banking environment.
But in addition to the growing number of users and low operating costs, neobanks are still losing money and therefore will either have to find viable business models or operate under the umbrella of traditional credit institutions.
That is why most neo-banks operate with a "freemium" model, in which they offer their product for free, but charge for additional functions. Others offer multi-purpose subscriptions with different account levels. Others target specialized departments, such as small businesses or retailers.
Business Insider Intelligence conducted a Global Neobanks research where it describes the neobanks market and the different models of operation. The research includes 26 globally operating neobanks. These are ABN Amro, Adyen, Ant Financial, ANZ, Aspiration, Banco Inter, Bank Leumi, Banco Sabadell, Banco Votorantim, Bnext, bunq, Chime, Commonwealth Bank of Australia, Dave, Finleap , ING, Judo, Klar, Kuda, Mastercard, Monzo, Moven, MYbank, National Australia Bank, Neon, Nubank, N26, OakNorth, Open, Pepper, Penta, Revolut, Raising, Rabobank, Santander, Starling, Standard Chartered, Tandem, TD Bank, TransferWise, Tencent, Uala, Uber, Volt, Varo, WeBank, Westpac, Xinja, 86 400.
Also the research done by Business Insider Intelligence had a conclusion
The neobanks' valuation have skyrocketed, thanks to attractive value propositions that include personal finance management features, low rates / prices and superior user experience.
The rapid rise has led Neobanks to develop special features to stand out from the competition but it increases their opeerating costs significantly.
There is no clear path to profitability. There are several strategies: freemium, multi-team subscriptions and specialization are three strategies that neo-banks use to pursue profit.
source,
https://www.theceo.gr/neobanks-anazitontas-ena-viosimo-montelo-litourgias/
