THE EVOLUTION OF THE US NEOBANK MARKET: Why the US digital-only banking space may finally be poised for the sp – Business Insider India

What is a neobank?

Neobanks, digital-only banks that aren't saddled by traditional banking technology and costly networks of physical branches, have been working to redefine retail banking in major markets around the world.

The top neobanks in the US and EU include:

That's largely because of an onerous regulatory regime, which has made it very difficult to obtain a banking license, and the entrenched position incumbents hold in the financial lives of US consumers. Navigating the tedious and costly scheme for obtaining a banking charter and appropriate approvals has been a major stumbling block for the country's digital banking upstarts. However, developments over the past year suggest these startups are finally poised for the spotlight in the US.

Consumers', particularly millennials', growing frustration with legacy banking service providers, combined with their increased appetite for digital solutions, has accelerated the shift to digital-only banking. Startups and tech-savvy players are redefining the retail banking space and forcing incumbents to either evolve or lose out on this key business segment.

In The Evolution of the US Neobank Market, Business Insider Intelligence maps out the factors contributing to this shifting tide, examines how key players are positioning themselves to take advantage, and explores how incumbents can embark on their own digital transformations to stave off disruption.

The companies mentioned in this report include: Aspiration, Chime, Goldman Sachs' Marcus, JPMorgan Chase's Finn, N26, and Revolut.

Here are some of the key takeaways from the report:

Interested in getting the full report? Here are four ways to get access:

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THE EVOLUTION OF THE US NEOBANK MARKET: Why the US digital-only banking space may finally be poised for the sp - Business Insider India