Neobanks: Trend, Revolution, or an Investment Opportunity?

A decade ago, business banking was inseparable from branch visits, face-to-face consultations, lengthy processes, and paper contracts. Today, many companies manage their finances virtually – online or through mobile apps.

Neobanks, which offer a fully digital customer experience, were considered a fintech experiment until recently. Today, they are among the fastest-growing players in the financial sector. Investors are increasingly drawn not only to their potential for expansion into new markets but also to their innovative service development models.

“Neobanks’ strength lies in their relationship with customers. Most were founded as fintech companies, which enables them to implement digital solutions faster, develop partnerships, and offer a broader range of services than traditional banks,” says Dovydas Asanavičius, Chief Investor Relations Officer at Finora Bank.

Rapid digitalisation has also transformed the way people view banking. Customers now expect to open a bank account, invest, or obtain a loan as easily as booking a taxi or hotel on their phone.

The growth of neobanks has also pushed traditional banks to evolve more rapidly. Traditional banks are increasingly adopting digital solutions, while neobanks are expanding their lending activities and moving closer to the conventional banking model.

“We will see traditional banks and neobanks increasingly converge,” says Asanavičius.

What will banking look like ten years from now? How do the business models of traditional banks and neobanks differ, and what new opportunities will emerge for investors? Listen to the Verslo tribūna interview with Dovydas Asanavičius, Chief Investor Relations Officer at Finora Bank.

More: Neobanks: Trend, Revolution, or an Investment Opportunity?