Here are some of the top innovations happening in this space below:
- Digital Onboarding/Account Opening: Neobanks offer simple and fast online account opening compared to traditional banks.
- International Payments/Remittances: Neobanks offer the usage of their debit card in foreign countries for no fees and at live exchange rates.
- Money Tracking/Account Aggregation: Neobanks can simplify money tracking and account aggregation.
- Lending/Credit Products: Neobanks can provide credit products at lower charges and interest rates compared to traditional banks.
Growth of neobanks over the years
Neobanking startups have been growing steadily over the last few years. The startup activity in this space started around 2004 and gathered pace after 2011. Here are some interesting observations:
Around 50% of the startups were founded in 2016 and 2017.- Before 2010, there were 6 such startups; by 2015, the number rose to 28.
- However, in the last three years, the number of neobanks established has increased to 45.
