According to the definition online, a Neobank is an information technology that offers digital banking services.
The Neobank is an evolution in the online banking space. When the internet became more mainstream in the 1990s, established banks were the first to start offering online services.
However, after the crisis of 2008, there arose a new type of bank, the Neobank. Such banks are no longer reliant on a hybrid model of having brick and mortar stores as well as an online presence.
These banks serve a different customer base vs that of the more established banks. The more established banks tended to be for people who had more established wealth. Namely, the Whites in America, especially the upper middle and upper classes. While there were people from every background at these banks, this was still a stuffy industry that tended to have most appeal to people who had experience with banking systems. These were people who had lived in urban and suburban areas and already had been maintaining their wealth.
Neobanks served the underbanked online. Without relying on brick-and-mortar stores, banking has truly become a virtual endeavor now.
Chime is a Neobank which just went on the stock market. It joins other banks such as Varo and Revolut. These banks have differing features but they all are about serving underserved communities.
I think that this industry has alot of room for growth. The banking sector has been established by now but it needs some new competition that truly embraces the internet for what it is.
My Game Reviews 