FinTech Focus: NeoBanks Taking Over — Why 2020 is the Time to Switch
As we start this new decade, individuals (more than any era in the past) are ready and open for digital change that improves their financial lives — which never came from 50+ year relationships with big banks.
Consumers (especially Gen Z) are increasingly launching their own businesses and side hustles, and the maturing millennial population continues to turn towards digital options in their daily lives.
Regulation has created “open banking” policies that require large banks to allow their data to be accessed by 3rd parties (upon account holder request). This open banking movement in the financial services industry, in which fully digital banks (known as neobanks or challenger banks) have emerged, has led to new options that compete with legacy institutions. These newcomers are open for business around the world and serving markets and consumers who desperately need of new banking models.
With the addition of these digital, branchless banks, would making the switch now be worth it? Which type of bank will best execute on helping you achieve all your financial milestones?
