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If You Read One Article About Neo Bank Read This One!
“Banking’s are necessary, banks are not”- Bill Gates
The first wave of the fintech revolution was led by startups focusing on digital payments and lending. Now it’s “Neo-Banks” that are grabbing the attention of both fintech investors and entrepreneurs, with venture capital investments in neo-banks leading the charts of all fintech investments, and several neo-banks emerging both globally and in India. That being said, there is a fair amount of skepticism within the analyst and banker communities, as well as the common public, that ‘neo-banking’ may just be a fad that will taper down with time.
It has become a buzzword in the fintech and consumer banking worlds. Also referred to as “Challenger Banking” or “Open Banking”, neo-banking is a craze in both developed markets, such as the US and Europe, and emerging markets such as China, India, Brazil, and South-East Asia. In essence, it is a new way of banking, beyond the confines of brick-and-mortar establishments — one with a compelling digital presence.
Keep reading to learn why neo-banking is likely to become the next big thing in the world of banking.
