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What ’ s the difference between neo banks and challenger banks , how are they disrupting the global banking landscape , and what does the future hold in store ?
“ New players that combine intuitive user experiences with simple , easyto-understand sustainability features have a chance to stand out ”
NICOLA MITCHELL HEAD OF DIGITAL MARKETING , NOVUS
Fintech is changing – and not just in relation to legacy systems . While the global financial market has always been intrinsically male , the landscape is shifting as more women than ever before are embarking on careers in banking , investment , and payment-related industries .
As the pace of digital transformation in banking accelerates , the scope of what is technically possible to offer consumers is growing – and alongside it , the definition of what it means to be a bank is constantly evolving .
Over the last decade , a range of ‘ neo banks ’ and ‘ challenger banks ’ have popped up as an alternative to mainstream providers . It seems that their names are used almost interchangeably to refer to a wealth of fintechs disrupting the banking sector – but what exactly is the difference between neo banks and challenger banks , and what does their growth mean for the future of digital banking ?
What ’ s the difference between neo banks and challenger banks ? In practice , neobanks and challenger banks have more in common than they have differences . They are both disruptors in the banking space , placing a heavier focus on digital technology to bring new products and services to consumers . fintechmagazine . com 85