Since the mid-2010s , neobanks have risen to the mantle as the great challengers to household banking institutions – the likes of Monzo , Revolut , Starling Bank , N26 and Nubank are now well-established names in our industry .
Offering digital-only services , neobanks have defied the status quo of in-person banking , leveraging an open ecosystem approach with digital technologies at their core .
Data analytics & big data , cloud computing , robotic process automation ( RPA ), AI & ML – among other digital innovations – “ are key technologies , as neobanks look to steal market share away from legacy players with improved customer experiences .
As neobanks have grown in stature , legacy banks have responded by launching or scaling up digital banking subsidiaries or strategic business units ( SBUs ). Examples of incumbent-owned digital banks include HSBC ’ s First Direct and Scotia Bank ’ s Tangerine .
There has also been a broad industryled shift to reduce bank branches in towns and cities , as customer preferences shift to more convenient digital offerings .
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