Neobank

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A neobank (also known as an online bank, internet-only bank, or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch networks. [1] [2] [3]

Contents

History

The term neobank first became prominent in 2017 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 that partnered with a traditional bank to provide those financial services. [4]

List of neobanks

NeobankRegion
Brubank Argentina
Ualá Argentina
ING Bank Australia
86 400 Australia
Up Australia
Tyro Payments Australia
Volt Bank Australia
Xinja Australia
AION Belgium
Nubank Brazil
Koho Canada
Tangerine Canada
Simplii Canada
Wealthsimple Canada
Equitable Bank Canada
WeBank [5] China
Qonto France
N26 Germany
Sony Bank Japan
bunq Netherlands
Tinkoff Bank Russia
Qiwi Russia
Yandex.Money Russia
K Bank South Korea
KakaoBank South Korea
Bnext Spain
Atom Bank United Kingdom
Monzo United Kingdom
Revolut United Kingdom
Starling Bank United Kingdom
Ally United States
Azlo United States
Axos United States
Chime United States
First Internet United States
Simple United States
Good Money United States
SoFi United States
Varo United States

See also

Related Research Articles

Online banking, also known as internet banking or web banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services.

ICICI Bank Indian private sector bank

ICICI Bank Limited is an Indian multinational banking and financial services company with its registered office in Vadodara, Gujarat and corporate office in Mumbai, Maharashtra. It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialised subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management. The bank has a network of 5,275 branches and 15,589 ATMs across India and has a presence in 17 countries.

A direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking or through an independent banking agent network and may also provide access via ATMs, mail and mobile. Direct banks reduce the significant costs of maintaining a branch network.

Tyro Payments

Tyro Payments Limited is an Australian financial "fintech" institution (neobank) specialising in merchant credit, debit and EFTPOS acquiring.

Rebtel Swedish tech company

Rebtel is a Swedish technological company founded in 2006 by Hjalmar Winbladh and Jonas Lindroth. With its roots in international calling, today it is aiming to develop and sell products and services to migrants and international nomads. Its services include international calling, messaging and mobile money delivered in applications for Android, iPhone and Windows Phone.

UBS Multinational investment bank

UBS Group AG is a Swiss multinational investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres as the largest Swiss banking institution in the world. UBS client services are known for their strict bank–client confidentiality and culture of banking secrecy. The bank's large positions in the Americas, EMEA, and Asia Pacific markets make it a systemically important financial institution within the broader economy of Europe.

Simple is an American neobank based in Portland, Oregon. The company provides FDIC-insured checking accounts to US citizens and Permanent Residents through a partnership with BBVA USA and is part of the STAR network for surcharge-free access to around 55,000 ATMs. Since 2014, Simple has been part of the BBVA Group, one of the largest banks in Europe.

United Overseas Bank Limited is a Singaporean multinational banking organisation headquartered in Singapore, with branches mostly found in most Southeast Asian countries. Founded in 1935 as United Chinese Bank (UCB) by Sarawak businessman Wee Kheng Chiang, the bank was set up together with a group of Chinese-born businessmen. The bank is the third largest bank in Southeast Asia by total assets.

Financial technology Subset of technologies used in finance

Financial technology is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public. Financial technology companies consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.

Starling Bank Challenger Bank in the United Kingdom

Starling Bank is a digital, mobile-only challenger bank based in the United Kingdom. It focuses on current and business account products. Headquartered in London, Starling Bank is a licensed and regulated bank, founded by former Allied Irish Banks COO, Anne Boden, in January 2014. Since its founding, it has received over £230m of funding. The company received its banking licence from the Prudential Regulation Authority and the Financial Conduct Authority in July 2016.

Challenger banks are small, recently created retail banks in the United Kingdom that compete directly with the longer-established banks in the country, sometimes by specialising in areas underserved by the "big four" banks. As well as new entrants to the market, some challenger banks were created following divestment from larger banking groups or wind-down of a failed large bank.

Judo Capital

Judo Bank is an Australian Challenger Bank focused on small and medium-sized enterprise lending.

Xinja is an Australian neobank. Founded in 2017 by CEO Eric Wilson, Xinja was granted a full banking license by the Australian Prudential Regulation Authority in 2019. Xinja was the second Australian neobank to be made an authorised deposit-taking institution.  

Tide (financial service) british banking company

Tide is a UK financial technology company providing mobile-first banking services for small and medium-sized enterprises. It enables businesses to set up a current account and get instant access to various financial services. Established in 2015, Tide is one of the first digital-only finance platforms in the UK to provide current accounts for businesses.

WeBank is a private Chinese neobank, founded by Tencent, Baiyeyuan, Liye Group, and other companies. Tencent is the single largest shareholder, with an estimated 30 percent ownership share. WeBank's estimated valuation is approximately US $21 billion. Its CEO and Chairman is David Ku.

Good Money is a digital online banking platform, often called a neobank, founded by Gunnar Lovelace. Good Money directs 50% of its profits toward environmental and social justice initiatives through impact investments and charitable donations. As a digital platform, Good Money takes no ATM or overdraft fees. The platform’s customers vote on where Good Money will invest profits, but their options only include sustainable investments. It is based in San Francisco.

Chime (company)

Chime is an American technology neobank company which provides fee-free financial services through a mobile app.

Varo is an American mobile only neobank based in San Francisco, California. The company provides financial services through its mobile app and currently has 1 million customers.

Azlo is an American technology neobank company which provides financial services for small businesses through a mobile app and website.

Koho is a Canadian neobank based in Vancouver, British Columbia. The company provides financial services through its mobile app and prepaid debit card. While not the first online only bank, Koho does have the distinction of being the first neobank in Canada.

References

  1. Daet-Gibson, Blake. "How a NeoBank in Australia today, can fit into your financial setup". Medium. Retrieved 22 October 2019.
  2. CrouwdfundUp team. "What Is a Neo Bank and how are they disrupting traditional banking models?". Medium. Retrieved 31 December 2018.
  3. "The unstoppable rise of neobanks". World Finance. Retrieved 31 December 2018.
  4. "Mapping the Global NeoBank Landscape". Techfoliance. January 19, 2017.
  5. Wildau, Gabriel (5 January 2015). "Tencent launches China's first online-only bank". Financial Times . Retrieved 16 February 2015.