Consolidation and market dynamics Shuvo G . Roy , VP & Head of Banking Solutions , EMEA at Mphasis , predicts a wave of consolidation among traditional banks and their digital offshoots , as well as among neobanks themselves . He notes : “ The larger neobanks will scale up and push for additional market share , sometimes rebalancing the equation between themselves too , as opposed to against traditional banks alone .”
This suggests a shift in strategy where neobanks are not just competing with traditional banks but also among themselves to solidify their market presence .
“ The need for efficiency has increased as the pressure on operational costs operations has grown significantly . Per-person productivity pressures have increased and so has the continuous focus on the reduction of costly errors . The need to keep margins intact in a high-rate market has caused additional focus on keeping costs low .”
Core banking systems and technology stacks Neobanks leverage advanced technology stacks to provide efficient banking services .
Lucian Daia , CTO at Zitec , explains that neobanks choose either a cloud-based Banking-as-a-Service ( BaaS ) platform , such as Mambu or Engine by Starting ,
72 August 2024