DIFFERENCES BETWEEN NEOBANK AND DIGITAL BANK

Neobank

Exists solely online –no physical branches-
Business model mainly based on third parties
*Interchange fees paid by merchant for purchases-
Most services are free of charge
All services are provided online

Digital Bank

Are the online subsidiary of an established bank
Business model based mainly on banking fees
*Costs paid by customers for the services provided
Services provided have specific costs
Services are provided only in own branches.

NEOBANK TENDENCIES

The US rank of Neobanks account holders will swell to 53.7 million in 2025, up from 29.8 million this year, per Insider Intelligence forecasts. -Bank of America and Citibank combined had only 45.3 million active mobile users in Q2 2021.

THE GLOBAL VENTURE CAPITAL MARKET:

Starling Bank has raised more than $900 million, per Crunchbase
Chime has raised $1.5 billion. Monzo has raised nearly $650 million.
Neobank Juni raised $21.5 million in July. Novo, raised $41 million in June. Nubank has raised $2.3 billion. FairMoney has locked down +$50 million.

NEOBANK MAIN CHALLENGES

Neobanks are usually specialize in payment transfers

Lack of services and benefits –i.e. salary in advance, e-wallet, etc.-

Neobanks rely on prepaid card as the only payment means

Great for the US market. Not applicable in other regions -lack of POS penetration-

Сompile with regulations

Software development companies may develop a nice look and feel, but understanding of banking regulations is a must.

Total dependence on access to mobile line connectivity

Mobile phone signal sometimes is poor outside large cities.

Integration with the ”real world”

The world is not “mobile”, requires integration with Non Banking Correspondent networks to solve the lack of point of contact with customers

ECOBANK™ OUR NEOBANK SOLUTION

We provide a complete ecosystem, ready to face the challenges of different market needs. Not just an application, but different modules for other markets, i.e., Retail chain networks to accept cash recharge and withdraw, etc.-

ECOBANK also provides a branded e-wallet apart from debit cards

We offer the API to be integrated into cash register platforms, POS, other mobile solutions, etc. Not dependency on branded cards, and lower costs for merchants.