Neobanks
topic on 5 shows · 10 statements across 9 episodes
Another Podcast 
the Neon Show 
A Product Market Fit Show 
the a16z Podcast 
20VC
10 statements about Neobanks, every show
Perret: Surviving neobanks were forced to expand into lending and investments
“If you started off with a neobank and all they did was have a checking account and a savings account and maybe a card well, in this period, if they wanted to survive, they needed to build the lending side of their offering. And so you know, they expanded there…”
Akhund: Mercury avoided an overcrowded neobank market by launching in 2019
“If we hadn't launched in 2019 and built up like a little bit of a lead, it would have been probably like an overly competitive space by 2020, 20, 21.”
Peiris: Neobanks cannot sustainably subsidize payments with deposit interest
“If a neobank starts, like using that money to subsidize another product, it becomes unfeasible because then people would churn.”
Evans: DTC neobanks see greater adoption in the UK than US
“DTC banking has happened a lot more in the UK than in the US, for example so-called neobanks.”
Velez predicts major neobank consolidation as consumers reduce financial apps
“Customers will have less apps in their phone, not more, and they will not have five banking relationships or 10 banking relationships or five different wallets. So I would expect a significant consolidation of that over the next few years”
Indian neobanking startups grew from zero to thirty in eighteen months
“18 months back, there was not a single company called neobank in India, and today we have at least 25 to 30.”
Indian niche neobanks will build enduring, very large businesses over decades
“I think many of these companies will choose their niches, their group of customers, and cater to their needs much better than banks, and create very valuable companies not just in the next three to five years but companies that will endure and become very larg…”
Strange: Early neobanks historically required 18 to 24 months to launch
“Many of them took 18 months, two years to get launched, because there's a whole series of partnerships that need to happen on the back end, usually added technology that needs to be written on top of those partnerships, so I thought we could almost walk throug…”
Pathak: Launching a neobank traditionally requires eight to ten vendor partnerships
“Well, eight to 10, because the pieces we haven't talked about is other use cases we can talk about how this applies for lending, but in case of neobanks, your customer wanting to pay a bill, and the way they pay a bill is with the check. Do you send them a che…”
Perret predicts European neobanks will expand to the US by 2021
“We're going to see a lot of the neobanks coming to the U.S., I suspect, in the next year to two years, and I suspect that we'll see a lot of U.S. Companies coming to the U.K. As well, where they'll be launching more neobank-like products.”