Michele Mattei’s Post

Know your Competition! This information is essential for CEOs of banks and credit unions and should be placed on their desks every month, then shared with their entire board: the rankings of Digital Banking Apps in the US. For local financial institutions aiming to maintain their market share, understanding these digital players and grasping the driving factors behind their growth is crucial. This insight is vital as your customers or members are attracted by specific products, features, and user experiences from these digital banking apps. Surprisingly some players are not present (some of them used to) like Revolut, Wise, Cash App, Current, Apple card) and I would think about alternative rankings. If Community Banks and Credit Unions aim to thrive, they must adapt their fintech strategy while acknowledging the challenges of keeping up with their existing core providers. This is precisely why they need to adopt a new approach: the Modular Banking strategy. This strategy provides flexibility, enabling legacy institutions to compete with Fintech without undergoing a complete core overhaul. It unlocks opportunities for accessing or constructing marketplaces of financial products and features, fostering product diversity, and delivering effective services to niche customer segments. Scoring factors by Payments include: Monthly number of downloads in either Android or iOS Number of active users each month Average time users spend on the app Platforms coverage Number of sessions per user See here full detail by PYMNTS here https://lnkd.in/ezvZ8-8s What do you think Efi Pylarinou Jason Mikula Marcel van Oost Ron Shevlin Bryan Clagett? #digitalbanking #corebanking #bankingsolutions #payments #fintechsolutions #digitaltransformation #fintech #baas #neobanks #challengerbanks #embeddedfintech #creditunions #communitybanks #embeddedfinance #nichebanking

🚀❓ Neobanks on the Rise?  The latest data shows that on the surface, UK neobanks are closing the gap with traditional banks in the mobile banking space. With an impressive 9.5 million new Android users in the first half of 2024 alone, neobanks are set to potentially outpace incumbents by early 2025 in terms of mobile users. While user growth of course doesn’t necessarily translate into primary banking relationships and immediate profits, it undeniably showcases the significant strides neobanks are making in terms of adoption and their ability to scale. Note though that Revolut has a huge impact on these figures - they account 41% of new app downloads - pointing to a widening gap between the neobank winners and the rest. 💡 Key Highlights: - 9.5 million new Android users for neobanks in H1 2024, compared to 4 million for legacy banks - Revolut leads with 7.9 million new users, accounting for 41% of new banking app downloads - Neobanks are on track to surpass legacy banks in total app users by Q1 2025 #Fintech #Neobanks #DigitalBanking #Innovation #UserGrowth

EXCLUSIVE: "A New Era" - James Gibson, Revolut Business in 'The Paytech Magazine' "Revolut Business‘ General Manager’ James Gibson reveals why the time is ripe for a fresh chapter in the neobank’s already successful story. For a while now, Revolut has been one of the big European and UK neobanks. Challenging the established order and providing a fully digital, accessible user experience and new exciting products for the modern consumer. Amongst a small crowd of similarly disruptive companies, it’s now officially the largest challenger in Europe and has a presence around the world too. The digital-only bank recently announced 10 million customers in the UK, bringing its customer base across Europe to 45 million. After finally receiving a long anticipated banking licence from the UK Prudential Regulation Authority (PRA) in July 2024, it is now eating up more market share, from incumbents." https://lnkd.in/eMbaVGSJ #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Revolut’s Ambitious 2025 Roadmap: Is This the Future of Fintech? Mortgages, AI-enabled assistants, biometric ATMs, business credit products, and even Revolut Kiosks—Revolut is setting a bold vision for the future. With so many features slated for launch, one can’t help but wonder: 🔹 Are we witnessing the next big leap in consumer banking, or could this rapid innovation outpace user trust and adoption? 🔹 Will biometric ATMs and AI assistants truly revolutionise customer experiences, or are they simply buzzwords until proven at scale? 🔹 Can Revolut’s instant mortgage approvals and other ambitious promises deliver without compromising the customer journey? In a world where fintech is rapidly reshaping financial norms, Revolut’s roadmap provokes a deeper reflection on the role of trust, privacy, and usability in driving adoption. 💬 What’s your take? Which of these innovations excites—or concerns—you the most?  #Fintech #Innovation #ArtificialIntelligence #Banking #FutureOfFinance

Revolut has laid out its plans for 2025, including the introduction of an #AI assistant, mortgages, ATMs, and a business credit product, after celebrating the milestone of hitting 50m customers. Looking ahead, next year will see the gradual roll out of an AI-powered assistant that promises to adapt to customers’ needs and preferences in-app, guiding them towards smarter money habits, enhanced financial decision-making and streamlined admin. Revolut will also launch its first mortgage product in Lithuania followed by Ireland and France in 2025. The goal is to provide a fully digital offering that is the fastest on the market, aiming to issue instant approval in principle and final offer in one business day subject to asset valuation and any necessary checks. Branded ATMs using facial recognition technology are also on the agenda, arriving initially in Spain early next year, dispensing both cash and cards, and in the long-term accepting cash deposits. Finally, Revolut Business will bring its first credit product to Europe and also plans to help companies manage their restaurant and store operations with Revolut Kiosk, for which it is exploring biometric payments. Nik Storonsky, CEO, Revolut, says: “2024 has been a significant year for Revolut, with millions of new accounts opened and innovative products launched across our markets. 2025 will be bigger and better. We want to revolutionize banking for the better and we’re on the right path to achieve this.” #yoursuccessourbusiness

UK neobanks are rapidly closing the gap on traditional banks. They are now only 6 million users behind in mobile app users. In the first half of 2024, they added 9.5 million new Android users. If this growth continues, neobanks will soon surpass app users of traditional banks, marking a transformative shift in digital banking. Discover more about this mobile banking revolution here. 🚀📱 #Fintech #BankingInnovation #Neobanks #DigitalTransformation

🇬🇧 UK's Neobank Revolution: Who's Winning the Digital Banking Race? 🏦🚀 Our latest Google Trends analysis uncovers fascinating shifts in UK fintech: Monzo Bank 's impressive growth from newcomer to market leader Revolut's rapid rise, often rivaling Monzo in popularity Starling Bank's steady ascent in the digital banking space The enduring relevance of Wise (formerly TransferWise) in international transfers Dive into the data and see how neobanks are reshaping UK finance: https://lnkd.in/eNQzbgtj Which neobank features matter most to you? Let's discuss! 💬 #UKBanking #Neobanks #FinTech #DigitalBanking #Monzo #Revolut #StarlingBank

📊 The case for Neobanks (Part 2): In UK & LATAM, neobanks are passing traditional banks in usage📊 🏦💡I've written in the past about neobanks, and their importance in driving financial inclusion, and incentivizing banks to innovate. A quick recap on global analogues (FY24 numbers): 1️⃣ Nubank: Users: 100M, Rev: $8B, Profit: $1B. LATAM focus. $74B Valuation. 2️⃣ Kakaobank: Users: 24M, Rev: $1.9B, Profit: $267M. S.Korea focus, and applying for a Thailand license. $7B valuation. 3️⃣ Revolut: Users: 38M, Rev: $2.2B, Profit: $428M. Has a UK, EU and Mexico banking license. $45B valuation. 4️⃣ Monzo: Users: 10M, Rev: $1.1B, Profit: $19.3M. Has a UK banking license. Privately held, and valued at $5.9B ❗The data says that Neobanks are becoming the preferred bank for customers: ✅ LATAM: 50%+ of the adult population in Brazil is a Nu customer ✅ UK: A study done by Splitmetrics says that UK neobanks have ~71.78M Android users, vs ~71.58M users of legacy banks ❓But why? 🏦💡Neobanks index on ease of usage and experience, which matters 📈 Consider this: 60%+ Nubank customers consider it their primary bank. And Nubank reportedly has a NPS of 86+. Banks are at ~50. Even customer first companies such as Apple range between 60-70. So experience talks. Kakaobank also, set itself apart on CX. It integrated with Kakaotalk: a popular messaging app, and leveraged the distribution and chat experience 🏦💡Risk appetite of neobanks is higher for banking & credit: 📈 Nubank targeted the unbanked: 22% customers didn’t have a bank acct. Revolut solved for credit: Europe has a high banking penetration. Ex: Hungary, Poland & Romania have a 90% banked pop. + but only 20-30% CC penetration 📈 On credit, (cards & loans) a point to note is since the risk is higher, the interest rates & NPA's will be higher. New age fintech lenders in India (Ex: Navi) have higher rates and NPA's because of the base they're targeting. Nubank in Q2 FY24 had NPAs of ~7%, vs Brazil bank's of ~3.2%. But Nubank also hit profits of ~$487M, which can be taken as proof of sustainability. There's a difference between charging higher rates to compensate for risk, and predatory lending, and somewhere, that distinction needs to be made 🏦💡Current bank personas in India don't solve the problem. We have a payments bank which is the closest to a neobank. But there needs to be a fundamental change in the type of thinking. Neobanks globally have succeeded because they were fintechs first, then banks. But Indian neobanks: Jupiter, Slice, Fi, never scaled because of regulations. So they're now merging with banks 🏦💡Regulators need to have a future first view, and not be bogged down by what has always happened. Seeing Nubank's value-add, the Central Bank of Brazil exempted them from requirements such as no foreign investors, and physical branches, and approved their banking license Maybe we could learn something from them. To read the deep dive, click here: https://lnkd.in/gZKs7Vhb

Know your Competition! This information is essential for CEOs of banks and credit unions and should be placed on their desks every month, then shared with their entire board: the rankings of Digital Banking Apps in the US. For local financial institutions aiming to maintain their market share, understanding these digital players and grasping the driving factors behind their growth is crucial. This insight is vital as your customers or members are attracted by specific products, features, and user experiences from these digital banking apps. I believe some other players could have been in the top 10 (like Current, Cash App) and some entries on the list below may warrant alternative rankings. Surprisingly, the 2 previous leaders Revolut and Wise are not in this ranking anymore. This can be explained by the change of scoring factors. Last coverage included Channel coverage / Up-to-date downloads / Monthly average users / Sessions per user / average session length. New scoring factors are loyalty and rewards program integrations / Number of active users each month / Average time users spend on the app / Ordering options (e.g., voice recognition, orders placed through a branded app or third-party aggregator). If Community Banks and Credit Unions aim to thrive, they must adapt their fintech strategy while acknowledging the challenges of keeping up with their existing core providers. This is precisely why they need to adopt a new approach: the Modular Banking strategy. This strategy provides flexibility, enabling legacy institutions to compete with Fintech without undergoing a complete core overhaul. It unlocks opportunities for accessing or constructing marketplaces of financial products and features, fostering product diversity, and delivering effective services to niche customer segments. See here full detail by PYMNTS here https://lnkd.in/ezvZ8-8s #digitalbanking #corebanking #bankingsolutions #payments #fintechsolutions #digitaltransformation #fintech #baas #neobanks #challengerbanks #embeddedfintech #creditunions #communitybanks #embeddedfinance #nichebanking Efi Pylarinou Jason Mikula Marcel van Oost Bryan Clagett Ron Shevlin