What is Neobanking?

Simply put, a neobank is an online-only bank. In other words it is a bank that has not physical interface (read “branches”) with its clients.

Compared to traditional, brick-and-mortar financial institutions, online-only banks are a relatively new concept. While there are an estimated 60 million customers who currently bank with online-only financial institutions in North America and Europe, one report estimates that this will surpass 145 million customers by 2024. With such a sizable share of the market so close to their inception, neo-banks are attracting significant Venture Capital backing.
PaymentsJournal has posted a detailed article on the subject of neobanking. Read it now - An Introduction to Neo-Banking