Neobanking Revenue: How to Differentiate in a Crowded Market

In this episode, we explore what the future holds for neobanks, with so few currently profitable in the face of a current economic downturn. We’ll discuss the challenges of setting business strategies over the next couple of years, answering key questions such as whether neobanks should pursue growth at the expense of unit economics, how they can continue to differentiate their revenue streams from one another, and ultimately what they should do as rising rates pressure investors to stay clear of potentially “riskier” assets.

Neobanking Revenue: How to Differentiate in a Crowded Market

Timestamps:
- Neobanking revenue: How do you differentiate in a crowded market? (3:21)
- Where are we right now with Neobanks? And how healthy are they? (6:08)
- VC funding: How will this play out with regards to Neobanks vs Fintech in general (10:17)
- Examples of Neobanks diversifying revenue & BaaS (17:15)
- Subscription based revenue: Does it work globally? And how will it impact the revenue of Neobanks? (21:50)
- Does becoming a licensed bank slow down the creation and shipping of products? (23:42)
- Embedded vs standalone banking in the future (28:55)
- How should we bank with a Neobank? (33:53)

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• You can find Adam Davis here
• You can find Jeff Tijssen here
• You can find Nik Milanović here
• You can find Valentina Kristensen here

Sources cited:

• Nubank Customer Base - Statista
• Revolut Customer Base - Revolut
• Neobank Profitability - Forbes
• Goldman Consumer Banking Revenue - Pyments.com