Are Neobanks poised to stay in financial landscape?


Neobanks have raised the concerns of the public everywhere in Europe. Revolut, N26, Nickel, Starling, Monzo etc. are already known as key players in the industry. Most of them have succeeded massive fundraisings and are quite close to announce new capital injections in the press or the launch of new products and services.

Despite impressive customer acquisition (more than 1 million customers for N26, twice much for Revolut…) none of these mobile-only neobanks have reached sustainable profitability[1].

Neobanks are still cash-burner companies and even if many of them are generously funded by venture capitalist or established commercial companies, they need to evolve if they expect to stay alive and last as key players on the banking scene.

In this article we will check if Neobanks are equipped to stay or not.

[1]       In December 2017, Revolut was the first digital challenger bank to claims to have reached the break-even despite a yearly loss of 16 million €. Since then and despite an impressive client base growth of more than 8.000 units per days, balance go back in the red again.


  • Are Neobanks poised to stay in financial landscape?

    • A word about definitions

  • Neobanks growth factors, why they are here to stay...

    • Innovation will continue

    • Neobanks are Fintech

    • Younger generations love them

    • The Service offer will upscale

    • Professionals will be enlisted

    • More breadth and depth

    • PSD II and Open Banking will sustain the growth

  • Neobanks may face tough time because…

    • Disappearances and consolidations cannot be avoided

    • Innovation is limited

    • The Brexit could stop the European expansion

    • Good Customer experience is hard to build and harder to maintain

    • Reputation is a double-edged asset

    • Being Online only may be insufficient to maintain strong customer relationship

    • Transparency has its limits

    • Incumbents are not dead

  • Conclusion

The Author


Geoffrey Laloux, has 19 years’ experience in digital transformation. He worked mainly for European Institutions and for Telecoms or Medias companies before joining the Banking sector with Initio in 2015 as manager in charge of the Business Line Innovation and Digital Transformation.