do Neo Banks make sense?

great Twitter thread discussing the evolution of Neo Banks. About a five-minute read, but embedded links will take you to on the deep dive.

1/42: What the heck is going on with the #fintech ecosystem’s obsession with Neo-Banks? Do they actually make sense in the US? Traditional Bankers say “absolutely not”. I say “they can”. Unpacked: pic.twitter.com/iBvbP9m82K

— Frank Rotman (@fintechjunkie) October 16, 2020

Comment: Neo Banks are useful for incumbents, as they deploy and field test new services. Which are promptly adopted by incumbents. For example, I’m with HSBC and its recently adopted the Neo Banks digitally rich current account e.g., immediate notification of cash in / out, end of month cash balance forecasts, etc. These incessant and often shrill predictions that Neo Banks will take over the role of incumbents are totally, massively wrong. As I’ve been pointing out for, literally, years.