The meteoric rise of the neo-bank has given traditional financial institutions a lot to think about in recent years. Born in the era of mobile banking, the convenience of a digital-first approach can be epitomised by the customer base of leading financial technology company, Revolut. Having only crossed the 1 million customer mark in December 2017, Revolut now finds itself with 15.5 million global users, and this growth is only expected to continue.
Neo-banks are challenging traditional institutions that still operate with legacy systems. They are the “new kids on the block”, capable of quick money transfers and seamless payments, as well as a plethora of other financial services. Competition is fierce, and the COVID-19 pandemic has only increased the pace and scope of change. In response, traditional banks have had to undergo severe digital transformation – and they have certainly stepped up to the plate.