Related Terms
DEFINITION
Neobank
Neobanks, also known as challenger banks or digital banks, are fintech companies that provide banking services entirely through digital channels without any physical branch networks. They leverage technology to offer customer-centric, cost-effective, and accessible financial solutions, often with a focus on specific market segments or niches.
Synonyms
Challenger bank, Digital bank, Online bank
Acronyms
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Synonyms
Challenger bank, Digital bank, Online bank
Acronyms
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Examples
Revolut, a prominent UK-based neobank, offers a range of digital banking services including current accounts, international money transfers, and cryptocurrency trading to over 15 million customers globally.
FAQ
How do neobanks differ from traditional banks?
Neobanks operate exclusively online without physical branches, allowing them to offer more competitive rates, lower fees, and innovative digital features compared to traditional banks.
Are neobanks regulated like traditional banks?
Yes, legitimate neobanks are regulated and must comply with the same laws and oversight as traditional banks in the jurisdictions where they operate. However, some neobanks partner with regulated banks rather than seeking their own charters.
What are the benefits of using a neobank?
Neobanks often provide a more intuitive, mobile-first user experience, lower costs, faster account opening, and features like real-time spending insights and budgeting tools that appeal to digitally-savvy consumers. They also tend to focus on specific underserved market segments.
Book your demo today and see why leading financial institutions
worldwide trust Atfinity to drive their digital transformation.
Book your demo today and see why leading financial institutions worldwide trust Atfinity to drive their digital transformation.