Not sure if you’ve noticed, but there are a lot of new banks popping up lately. According to Statrys - a Hong Kong-based neobank focused on multinational businesses customers, there are at least 213 that they’re tracking.
These are not just ordinary banks; they’re neobanks - digital-only financial institutions built on new, faster, more flexible and in some cases more secure platforms. They don’t have long queues, CBD branches or their name stamped on skyscrapers. They’re born digital, so everything is designed to be accessible through your phone or a web browser.
Neobanks are also known as “challenger banks” in some parts of the world because they often challenge more traditional banking concepts, like fee structures, cards and term investments. These banks are changing the game. They ‘re focussed on the customer experience, driven by purpose, not profits. There’s no suit and tie required and you can set your own pronouns too. Neobanks are typically much faster and more efficient than the big banks. Most importantly, they’re really good at saving money.
With so many incredible new digital banks, narrowing this list down to just a few was hard. We take a quick tour to see how neobanks around the world are getting it right.
Monzo in the UK
No neobank roundup is complete without Monzo. This challenger bank based in the UK launched in 2015 and is one of the pioneers in this relatively new industry. It famously caused a stir with its cheeky hot takes on Twitter and Instagram.
What we love about Monzo ❤️
Monzo makes for an amazing travel companion. Spend abroad without paying currency conversion fees. Withdraw money from ATMs without fees (up to a limit). Create a shared tab to pool expenses with friends, even those not using Monzo.
NuBank in Brazil
NuBank or Nu launched in 2013 and is one of the largest banks in Latin America. This neobank, based in Brazil is the region’s answer to a volatile political and economic environment and questionable government controls over people through their money. NuBank has received high praise for its ability to build a secure, professional and scalable digital banking platform for individuals and businesses. Warren Buffet’s Berkshire Hathaway even invested over $1.5 billion into Nu.
What we love about Nu 💜
Nu is all about empowerment for everyone, but also distinctly for women, and we are here for it. Their brand heavily features strong, confident modern women. Making it easy for anyone to open an account and control their own finances is a big deal, especially when you consider the extensive range of social and economic diversity across Brazil, Columbia and Mexico, where Nu operates.
Chime in the USA
The San Francisco-based digital bank, Chime was founded in 2012 and famously launched to the public on the Dr Phil Show. Chime’s mission is all about helping people to participate in decisions around their money by driving down fees and offering options to grow their money.
What we love about Chime 💚
Most banks charge account fees. Many American banks in particular make a significant portion of their earnings from things like monthly account or card fees, overdraft fees, ATM fees, deposit fees, letter fees, online fees, etc. Chime does away with all of that, with no fees, and up to $200 fee-free overdraft. Plus, they offer a high yield savings account that offers 1.50% APY
What is APY? Annual Percentage Yield or APY is the actual rate of return that will be earned in one year if the interest is compounded. Investopedia.
Debut in New Zealand
Now, we’re building Debut in New Zealand. It’s a revolutionary banking platform that’s built for the next generation of banking. Champions across the world have already proven that neobanks are here to stay. Debut will bring Kiwi innovation to this burgeoning sector and for the first time in New Zealand, a bank will be built through direct community collaboration and feedback.
Take a look behind the scenes to see what we’re working on and let us know what you think. Visit community forum.
Sign up for the waitlist and be the first to experience New Zealand’s next-gen banking for yourself.
