Neobanking in Transition: Opportunities and Obstacles in a $6.37 Trillion Transaction Era

Neobanks are rapidly transforming the global financial landscape, with their transaction values expected to exceed Japan's GDP by 2024. Originating in 2013, these digital alternatives to traditional banks leverage cloud technology, AI, and offer white-label services to major financial institutions. Despite providing convenient, all-in-one financial solutions and expanding their offerings, neobanks face profitability challenges, with only a small percentage breaking even. Additionally, they must navigate regulatory scrutiny, liquidity issues, and ensure sustainable growth without compromising their innovative capabilities or customer trust. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: Finance Magnates | Financial and business news – FinTech