Neobank

A neobank (also known as an online bank, internet-only bank, virtual bank or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch networks. The term "challenger bank" is used in the UK to refer to a number of fintech banking startups that emerged in the wake of the 2007–2009 financial crisis. Their services may be accessed by clients through their respective computers or mobile devices.

The range of services provided by neobanks is not as broad as that of their traditional counterparts. Unlike incumbent banks, a large portion of the income of neobanks is mainly made up of transaction fees received when customers pay with their debit card.

History

The term neobank has been in use since at least 2016 to describe fintech-based financial providers that were challenging traditional banks. There were two main types of company that provided services digitally: companies that applied for their own banking license and companies in a relationship with a traditional bank to provide those financial services. The former were called challenger banks and the latter were called neobanks.

Notable neobanks

According to Dealroom.co the most notable neobanks in Europe are the below:

1. Monzo
2. Chime
3. N26
4. Revolut
5. Starling Bank
6. OakNorth Bank
7. Zopa
8. Atom Bank
9. Qonto
10. Wise
11. Adyen
12. Bunq
13. Viva Wallet
14. Monese
15. Tandem
16. NuBank

See also

• Neobanks in Europe