BANKING
26
N eobanks , those digital-only , innovative banks and financial services companies with no physical branches , legacy technologies or processes , are dominating the fintech market like never before . The second half of the last decade in particular saw exponential growth , with an estimated 39 million users worldwide embracing the customer-focused , fully digital , ‘ freemium ’ business models they offer .
For neobanks , the market is filled with both opportunity and competition . The latter has seen many businesses focus on greater innovation or customer-driven features such as better or no overdraft rates , minimal or no fees and other sign-up incentives , as they compete for the market . At the sharp end , only last year Varo Money made tentative steps towards becoming the first allmobile bank in the history of the US ,
JANUARY 2020