Description

As the global banking industry struggles with issues related to rising costs, legacy infrastructure, evolving customer demand and changing regulations, the NeoBanking industry is making slow but steady progress. With new business models, innovative products and services, use of technology and approach to business, NeoBanks are engaging their customers like never before. The objective of this study is to identify NeoBanking trends in Europe. With regulations enabling access to data to encourage competition, NeoBanks are disrupting the market. The underserved market segments are exploring new and innovative offers. This study delves deeper into the efforts that NeoBanks are making to differentiate themselves, technologies that they are using, and the new business models that are working for them.

While NeoBanks will continue to disrupt the market, they need to be backed by a solid foundation. The United Kingdom has recently issued licenses to many new banks are almost 150 years. These new banks are using technology to forge ahead, and while they do not have the legacy of information that most large banks possess, they are using connected devices and shared economy and a completely new approach to gather consumer data. This data is being used to derive insights and make better decisions. This in turn is appreciated by consumers and enterprises alike, who are now open to sharing data in a secure environment in exchange for better products and customized services. Technologies such as AI, ML, analytics, and Blockchain are constantly evolving and new solutions based on these technologies are gaining prominence. Some of the areas that are likely to witness significant developments include security solutions, analytics based decision-making, and natural language understanding based applications. Regulators are also promoting NeoBanks by enabling access to data through regulations such as PSD2 and GDPR. Incumbents are also playing a significant role with strategic investments in innovative companies, partnerships, and also by launching their own NeoBanks.