Neobank

A neobank (also known as an online bank, internet-only bank, virtual bank or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch networks.[1][2][3] The term "challenger bank" is used in the UK to refer to a number of fintech banking startups that emerged in the wake of the 2007–2009 financial crisis. Their services may be accessed by clients through their respective computers or mobile devices.

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    The range of services provided by neobanks is not as broad as that of their traditional counterparts. Unlike incumbent banks, a large portion of the income of neobanks is mainly made up of transaction fees received when customers pay with their debit card.[4]

    History

    The term neobank has been in use since at least 2016[1] 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 in a relationship with a traditional bank to provide those financial services. The former were called challenger banks and the latter were called neobanks.

    Notable neobanks

    According to Dealroom.co[5] the most notable neobanks in Europe are the below:

    1. Monzo
    2. Chime
    3. N26
    4. Revolut
    5. Starling Bank
    6. OakNorth Bank
    7. Zopa
    8. Atom Bank
    9. Qonto
    10. Lunar
    11. Wise
    12. Adyen
    13. Tide
    14. Bunq
    15. Viva Wallet
    16. Curve
    17. Juni
    18. Monese
    19. Tandem

    References
    1. "Digital Economy Outlook" (PDF). BBVA Research. 2016. p. 12.{{cite web}}: CS1 maint: url-status (link)
    2. Ballard, Barclay (October 11, 2018). "The unstoppable rise of neobanks". World Finance. Retrieved 31 December 2018.
    3. "What is a neobank?". Business Standard India. 6 May 2022. Retrieved 14 May 2022.
    4. Walden, Stephanie (2021-06-24). "What Is A Neobank?". Forbes Advisor. Retrieved 2021-11-21.
    5. "Dealroom.co - European Challenger List".
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