Green neobank talks the talk, but does it walk the walk? Aspiration’s actual performance lags its promotion of itself as environmentally friendly. The reputational risk it’s facing is a warning to banking players that market ESG heavily.
N26 waves goodbye to the US: The Germany-based neobank said it will close accounts in January to increase its focus on Europe. Earlier this week, we laid out the challenges that foreign banks face in the US.
MoneyLion acquired digital media firm Malka Media to bolster its marketing and boost engagement on its platform.
Compliance risks loom for neobanks that ‘move fast and break things’: Digital-only banking players need to put anti-money laundering (AML) measures higher on their list of priorities and invest accordingly, a regulatory tech firm states in a new report.
U.S. Bank does a well-timed deal for business travel fintech: TravelBank offers companies an all-in-one expense management and travel product. The tie-up comes during an ongoing recovery in business travel from its pandemic-induced plunge.
UK payments standard could hurt neobank fees—but help them achieve primary banking status: It’s not if, but when, as the Competition and Markets Authority delays the rollout of recurring push payments that give consumers more control over ongoing transactions.
PNC-backed digital product for freelancers gets a big platform: Launched by the bank’s fintech incubator, indi could get an edge over standalone niche neobanks from exposure to Jobble’s gig worker user base.
New Jersey branch closures bring home a global trend of digital dispossession: Officials in Ocean County are worried about how shuttering locations is affecting seniors. A similar situation is playing out in other countries.
Small banks and fintechs are the next power couples: Two mergers in the US will link up small established players with fintech providers, underscoring the competitive rationale of bringing together older and newer types of financial institutions.
Lockdowns, online shopping, and fear of germs during the pandemic have hastened the shift toward all types of digital payments. As a result, Gen Z has fully embraced electronic wallet services, contactless payments, peer-to-peer payment apps, and digital uses of credit, including buy now, pay later.
Rather than launch competing offerings, we expect firms will support wealth managers’ digital transformation—the threat lies in the nature of these partnerships.
The Europe-based neobank’s acknowledgment of an increasingly apparent reality and its soft retreat could indicate other foreign neobanks are struggling to crack the US market.