I have been building in the digital banking space for awhile now. Given the stress in today's banking system, there is massive business opportunities in the neobank space. Neobanks can command premiums for niche customers, but they have to back up their talk with products and services that truly meet those customer needs. I write about why this is a great opportunity here: https://easilyamused.beehiiv.com/p/less-banks-banks
This article basically said mega banks will suck up everything. Not sure where the golden age of neobanks and fintech comes into the story, other than they nod at the end that there might be some room in the cracks for small firms.
Maybe they mean that the neobank owners/founder will do well and negate to realize that it doesn't help the clients or mean a transformative better change if the incumbents just gobble up the revenue streams.
> Not sure where the golden age of neobanks and fintech comes into the story
Well, it doesn't seem that sure a thing, but the argument was that as the megabanks get bigger, they'd care less and less about small clients, so there's an opportunity for a neobank to support these small clients, if they can find a product offering good enough to convince people to pay for it.
We're a neobank and credit card company and our sponsor is a regional bank in the US. Given the recent crisis their regulators (FRB, CFPB, etc) have all shown up simultaneously. A lot of additional scrutiny on them but also on all their neobank partners. Remains to be seen how long this will last but I expect a lot of the less compliant neobanks to be sued/scaled back/shut down.
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[ 2.8 ms ] story [ 23.7 ms ] threadWell, it doesn't seem that sure a thing, but the argument was that as the megabanks get bigger, they'd care less and less about small clients, so there's an opportunity for a neobank to support these small clients, if they can find a product offering good enough to convince people to pay for it.