Neobanked - 007 Building out propositions

The neobanks continue to broaden their customer propositions.

Throughout 2020 I’ll be publishing a newsletter called Neobanked. Issue 007 is below and you can subscribe here. Any initial thoughts or ideas are always welcome, get in touch!

Welcome to Neobanked, a newsletter focused on the quickly evolving UK digital banking market. I hope to gather enough interesting tidbits and news to share this every two weeks.

For me, Neobanks are digital-only offerings that apply internet economics (i.e. zero marginal costs) to the banking sector. My focus will be on companies such as Monzo, Revolut, Starling, and N26.

Through this newsletter I hope to cover each of these companies as they continue to grow within the UK and beyond. Some of the regular features will include user number growth, new product/feature releases, and links to relevant interviews and analysis.

News this week

Tandem raises a further £60m

The credit card and savings bank has raised more from the Qatar Investment Authority. Sources say the bank may be looking to acquire a solar-focused lender.

Starling confirmed as official Bank of Team GB for Tokyo 2020

Starling will provide each athlete using the account with £100 to support their ambitions.

Revolut seeking a UK banking licence

According to The Times’ sources, Revolut is preparing to apply for a UK banking licence and to be fully licensed by the end of the year. This would give them full balance sheet capabilities and provide customers with FSCS protection.

New and upcoming feature releases

Monzo Business launches

Monzo has fully released their Business accounts after a successful public beta period. Pro (£5 pm) and Lite (free) accounts are available with the usual range of integrations, multi-user access, and FSCS protection.

Revolut Junior app

Revolut has announced a new product for children aged 7-17. Existing Revolut users with Premium or Metal accounts can open an account for their child, allowing them to fund the account, access security features and transaction history. The account comes with its own card too.

Recent reports and studies

Banking in 2030 feature

A new feature from KPMG on The Economist looks at the next 10 years of banking, including comments from Monzo and UBS. A good discussion looking at banking manufacturers and distributors and the likely re-aggregation of banking after an explosion of new services.

The markets may be in turmoil but the neobanks are still aggressively pushing forward with their products. The current global situation may in fact be an accelerator for the digital-only propositions as it becomes more difficult to access in-person services and cash becomes a literal health hazard.

Written on March 22, 2020