Fintech

Neobanks’ Growth Comes at a Cost

Digital-only neobanks have more innovative technology than most banks, plus deep funding. That should assure success, but just a handful of neobanks are dominant, with the rest spending a fortune in an attempt to build a sustainable customer base. For banks, this could be an opportunity to acquire struggling neobanks along with their technology prowess.

Digital-only neobanks have seen surging growth and adoption, with a big spike since the pandemic. However, they have used significant amounts of private equity to sustain the growth trajectories they are on.

Given that they still have a long way to go before they start to eat into a significant portion of traditional banks’ customer bases, it’s a fair question as to whether their current cost of acquisition is sustainable.

The neobank pool is getting crowded in any event. In 2017, there were about 100 digital-only neobanks globally, according to Moody’s. Today there are more than 250, though only a small percentage of those (such as Revolut, Rakuten and others) have their own banking license. Most rely on an existing bank’s license under a banking-as-a-service arrangement with partner banks like Cross River, The Bancorp Bank and Lincoln Savings Bank.

Read more

Veille-cyber

Share
Published by
Veille-cyber

Recent Posts

Sécurité des mots de passe : bonnes pratiques pour éviter les failles

Sécurité des mots de passe : bonnes pratiques pour éviter les failles La sécurité des…

4 jours ago

Ransomware : comment prévenir et réagir face à une attaque

Ransomware : comment prévenir et réagir face à une attaque Le ransomware est l’une des…

5 jours ago

Cybersécurité et e-commerce : protéger vos clients et vos ventes

Cybersécurité et e-commerce : protéger vos clients et vos ventes En 2025, les sites e-commerce…

1 semaine ago

Les ransomwares : comprendre et se défendre contre cette menace

Les ransomwares : comprendre et se défendre contre cette menace En 2025, les ransomwares représentent…

1 semaine ago

RGPD et cybersécurité : comment rester conforme en 2025

RGPD et cybersécurité : comment rester conforme en 2025 Depuis sa mise en application en…

1 semaine ago

VPN : un outil indispensable pour protéger vos données

VPN : un outil indispensable pour protéger vos données Le VPN, ou « Virtual Private…

2 semaines ago

This website uses cookies.