Technology for You (2021-07-21)
Growing demand for customer convenience, flexibility, 24/7 accessibility, and instantaneous service demand has led to the rise in transformative neobanks and challenger banks looking to disrupt the current status quo. By fully embracing a digital-first approach, neo/challenger banks have used innovation to streamline processes and scale new added value service launches, enabling new levels of convenience and flexibility.
According to global tech market advisory firm ABI Research, neo and challenger banks will continue on an impressive grow trajectory, with the user base for the top 57 neo and challenger banks expanding their number of accounts from 155 million in 2020 to 590.6 million in 2026.
“The global push in digital acceleration across a number of market verticals also applies to the financial services sector. Throughout the global pandemic, as banks and building societies closed branches and migrated their in-person staff to already burdened telephony services, the reliance on flexible banking and payments has been pushed to the fore,” said Sam Gazeley, Digital Security Analyst at ABI Research. “Traditional banks are feeling the pressure from their customer base to deploy digital solutions for financial services, competing with other traditional banks as well as neo/challenger banks. Rather than stifling the neobanks’ march to innovation, the increased demand for digital solutions during the pandemic has stimulated investors interest in them, and increased their visibility to target markets, onboarding new customers looking for compelling digital offerings.”