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The Sad Demise Of Europe’s Neobanks

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The Sad Demise Of Europe’s Neobanks

Forbes,

5 min read
3 take-aways
Audio & text

What's inside?

The decline of Europe’s neobanks has been as rapid as their ascent. 

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7

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Recommendation

Start-ups rise and fall, and disrupters are often disrupted. It is no different for the neobanks in Europe, whose vision of a better, more consumer-centric financial experience seems to have come undone. In this informative analysis, financial journalist David Dawkins looks at how the COVID-19 pandemic has thrown cold water on these upstarts’ aspirations, even if their design would appear to lend itself nicely to post-pandemic norms.

Summary

Europe’s neobanks had lofty ambitions and a fast rise.

Europe’s largest neobank start-ups sought to improve consumer banking with digital wallets handy for making small, on-the-go purchases at shops and eateries. They signed up millions of users in only a few years: Revolut boasted 13 million depositors by 2019. Neobank customers could bypass the old, slow payment methods of traditional bank accounts.

But COVID-19 came along in 2020, before these disruptors could become profitable.

The coronavirus pandemic and regulatory realities are challenging the challenger...

About the Author

David Dawkins is journalist at Forbes magazine.

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