The ascent of Neobanks
The financial services industry is changing. New competitors, modern technologies, and changing market situations make adapting to this rapid change more challenging. However, this change will only continue to accelerate.
In retail banking, new competition has emerged in recent years from so-called Neobanks. Where these players initially focused only on the payment area to build a large customer base, they are now moving into other businesses. And while they have hardly posed a threat to banks so far, they offer a better customer experience in some areas and have thus been able to win over young customers in particular. But traditional banks are not standing still. They are fighting back by investing in online banking and improving the client experience – denying the Neobanks further market share.
This report examines the reasons for the emergence of Neobanks, what makes them so unique, and where they score particularly well. Further, we look at the current state in different geographies. Finally, we offer a glimpse into the future, discussing the challenges Neobanks will have to overcome to remain relevant in the future.