Change is always constant and the banking industry is no exception.
Banking in general is 4000 years old but the oldest surviving bank is just 600 years old. Since then the industry has come a long way with several local and global brands changing the shape of banking owing to the ever changing demands of their customers.
Consumers are quick to adapt and change their behaviors according to the technology present. The introduction of smartphones has led to the emergence of new age startups and industries that are solely based on technology and could service their customers virtually. Consumers were delighted by digital experiences brought to them at a click. Apps like Uber and Amazon took the hassle out of hailing a cab or shopping in the real world, and set the benchmark for elegance, functionality and seamless experiences. Consumers expected no less from banking, and legacy banks either failed to provide a digital experience, or struggled to create one.
Neobanks emerged at this intersection of technology and banking, representing the vast number of users looking for app-based services. They created digital-first experiences,leapfrogging over the need for buildings and ATMs.
The concept of neobanks started in 2015 and has grown rapidly across the globe since. Revolut founded in 2015 has 15M personal customers and 500K business customers in 35 countries. Nubank and Chime, founded in 2013, have estimated valuation of $10B and $14.5B respectively. Emerging markets such as Brazil, India, China, and SouthEast Asia are the hotbed of fast growth for Neobanks. Research and Markets predicts that the global neobanking market will grow by 47.1% by 2026, to reach $333.4 billion.
In this eBook we will talk about the emergence of neobanks, their characteristics, types, differences between neobanks, digital banks and traditional banks, and the benefits of neobanks. The topics include: