During the Cambrian explosion phase, lots of Neobanks were funded. It was a period of high excitement, full of hopes and dreams. Cambrian explosion is usually followed by consolidation when: A. Lots of startups fail. For investors with a portfolio, this is difficult. For entrepreneurs, this is traumatic. B. A few startups make it to the…
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Since the first wave of challenger banks arrived around 2015 with basic account offerings, the biggest players branched out into lending, stock trading, savings, and junior accounts. Very few took decisive steps into the insurance market. As they sought competitive advantages, leading neobanks have since expanded their product offerings with insurance and boosted revenues with…
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Neobanks (regulated digital only) are hot right now with 5 already in the Fintech 50 Index, many more lining up to IPO and top tier investors (including Warren Buffet in Nubank) going all in on private equities. However with the public equity market demanding profits again and with many Neobanks getting revenue without lending, the…
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Our London banker techno entrepreneur, Howard Tolman, is on holiday today so I am covering for him with a story he suggested. Our 2017 post looked at the chances of Challenger Banks breaking the massive bank concentration in the UK. The UK has one of the most concentrated/ consolidated banking markets in the world with the top 5…
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