Challenges

Key Challenges for Neo and Digital Banks

Neo and Digital banks are facing intense structural and economic pressures, it is no longer about the best in class app UX, but who has the most robust compliance engine and the highest cross-sell rate for high-interest products

1

Sustainable Profitability

Most Neo banks struggle to move beyond high customer acquisition into consistent revenue generation. They have limited cross-sell and monetizable product lines

2

Market Differentiation

Difficulty differentiating beyond modern and sleek user experiences. They have fragmented  and limited customer loyalty

3

Customer Trust

Despite great user experience, customers remain cautious about storing significant balances with digital-only banks and perceived lack of safety vs. traditional banks

4

Scaling Operations and Compliance

Rapid growth often exposes operational and technical weaknesses. they face intensifying regulatory scrutiny across all major markets and increasing scrutiny on KYC/AML compliance