Neobanks/Virtual Banks Explained/Top Competitors

Neobanks, sometimes called challenger banks, were typically launched as non-bank entities. That is, they provide technology that acts as a middleman or enabling layer within financial transactions, but don’t have bank charters. Instead of having their own authorized and government-insured bank operations, they partnered with true banks in order to be able to offer debit cards and depository accounts. These traditional banks charge a fee for providing such services, while the neobanks operate under their own new brands, including branded credit and debit cards. The neobanks provide easy-to-use smartphone apps that seamlessly connect the consumers to their accounts.

However, well-established and well-funded neobanks have been seeking their own bank charters so that they can expand services and offer their own FDIC insurance (in the U.S.), along with other banking services, without having to pay fees or share financial assets with third-party banks. This neobank business model has generally been designed to appeal to younger (millennial) consumers. The strategy is focused on:

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Become a Plunkett Research Online subscriber to gain unlimited access to our massive amount of vital industry data and market research.

✔ 100,000 Industry Statistics
✔ 500 Industries Analyzed for Market Size, Profits and Forecasts
✔ 150,000 Industry Executives Profiled
✔ 25,000 Companies Profiled, Ranked and Analyzed
✔ 1,000 Vital Trends Analyzed, totaling 1,000,000 words

Learn More

Neobanks/Virtual Banks Explained/Top Competitors, Business and Industry Trends Analysis

A Representative List of Organizations that Have Used our Research and Products:

How to access Plunkett Research data.

What data challenge can we help you solve today?

Take a Tour

Contact

Testimonials