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:
• Chime
• Varo
• Sofi
• Wise
• GoBank

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.