Also known as “challenger banks,” Neo-Banks are fintech organizations that provide banking services online and typically have no brick-and-mortar locations.
What are Neo-Banking examples?
Popular Neo-Banks include:
Why do people use Neo-Banks?
Neo-Banks offer many of the same banking products as traditional banks but typically have lower fees for customers. Neo-Banks stay competitive with traditional banks given their low overhead costs (due to the absence of brick-and-mortar branches).
How do Neo-Banks make money?
Revenue models are typically based on interchange fees.
What is the difference between online banks and Neo-Banks?
While traditional banks offer online banking services, Neo-Banks operate almost exclusively over the internet.