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This article lists some of the most interesting stats uncovered in the Federal Reserve Bank of Atlanta’s Survey of Consumer Payment Choice, raising some fascinating questions for the future of retail payments. How long will we still use checks? Are we on the way to a cashless society or could we see a reversal like we’re now seeing in the Nordics? Just how much will non-bank payment accounts replace traditional banks? Take a look into the changing priorities of the American consumer here: https://lnkd.in/e_eSGZsh

Are high street banks at risk? Several neobanks are now among the top 5 or 10 largest banks in their respective countries. Buckle up, the fintechs are taking over. Neobank Growth Snapshot: - Total clients: 1.1 billion worldwide - 20 neobanks serve 10M+ clients and 39 serve 5M+ clients. One crucial argument against neobanks was profitability. Some say that only 5% are profitable, but the ones that are, are onboarding users and increasing profitability at impressive rates. A huge portion of users are now using neobanks for their daily banking needs. The Revolut and Starling Bank numbers speak for themselves. Starling Bank increased their profitability sixfold and processed more than £174.1 billion in transactions over the past year. They have a total of 4.2 million accounts, with 3.6 million being core accounts, and an impressive 78.7% of these are active. The average revenue per active customer stands at £242, reflecting the bank’s strong user engagement and service effectiveness. Revolut, in its annual report, shows similarly impressive stats. The bank experienced a 68% rise in customers using Revolut as their primary account, with revenue skyrocketing 95% to £1.80 billion. Net profit hit £344 million, and profit before tax soared to £438 million. The number of monthly transactions grew from 341 million to 590 million, among 38 million clients, this averages out to 15.5 transactions per user per month, showcasing daily usage rates. This leads to increased total customer balances by 38%, from £13.2 billion to £18.2 billion. It's becoming clear that these figures are starting to look very similar to incumbents. With neobanks offering rich, personalizable, real-time, and highly self-service banking experiences, the pressure is on.

#crossborder #moneymovement #payments Lucy Ingham and FXC Intelligence best in the business at delivering deep dive data and analysis. Banks may be leading in B2B cross-border payments today but with increasing adoption of mobile wallets and virtual cards I suspect we’ll see these categories with significant growth.

Are high street banks at risk? Several neobanks are now among the top 5 or 10 largest banks in their respective countries. Buckle up, the fintechs are taking over.   Neobank Growth Snapshot: - Total clients: 1.1 billion worldwide - 20 neobanks serve 10M+ clients and 39 serve 5M+ clients.   One crucial argument against neobanks was profitability. Some say that only 5% are profitable, but the ones that are, are onboarding users and increasing profitability at impressive rates.   A huge portion of users are now using neobanks for their daily banking needs. The Revolut and Starling Bank numbers speak for themselves.   Starling Bank increased their profitability sixfold and processed more than £174.1 billion in transactions over the past year. They have a total of 4.2 million accounts, with 3.6 million being core accounts, and an impressive 78.7% of these are active. The average revenue per active customer stands at £242, reflecting the bank’s strong user engagement and service effectiveness.   Revolut, in its annual report, shows similarly impressive stats. The bank experienced a 68% rise in customers using Revolut as their primary account, with revenue skyrocketing 95% to £1.80 billion. Net profit hit £344 million, and profit before tax soared to £438 million. The number of monthly transactions grew from 341 million to 590 million, among 38 million clients, this averages out to 15.5 transactions per user per month, showcasing daily usage rates. This leads to increased total customer balances by 38%, from £13.2 billion to £18.2 billion.    It's becoming clear that these figures are starting to look very similar to incumbents.   With neobanks offering rich, personalizable, real-time, and highly self-service banking experiences, the pressure is on.

How Should Banks Respond to Fintech Disrupting Cross-Border Payments? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FinTech's are soothing long-standing pain points to eat at banks' share of ballooning cross-border payments. And some could steal a bigger share of consumers' wallets as they stack on more financial offerings. Demand for cross-border payments is surging as remittance flows rise, global supply chains deepen, and online merchants work to sell products in more countries. But, while real-time networks have made instant the norm for domestic payments, global transfers have been slow to catch up. #payments #paymentsolutions #paymentprocessing #fintech #crossborderpayments

Are high street banks at risk? Several neobanks are now among the top 5 or 10 largest banks in their respective countries. Buckle up, the fintechs are taking over. Neobank Growth Snapshot: - Total clients: 1.1 billion worldwide - 20 neobanks serve 10M+ clients and 39 serve 5M+ clients. One crucial argument against neobanks was profitability. Some say that only 5% are profitable, but the ones that are, are onboarding users and increasing profitability at impressive rates. A huge portion of users are now using neobanks for their daily banking needs. The Revolut and Starling Bank numbers speak for themselves. Starling Bank increased their profitability sixfold and processed more than £174.1 billion in transactions over the past year. They have a total of 4.2 million accounts, with 3.6 million being core accounts, and an impressive 78.7% of these are active. The average revenue per active customer stands at £242, reflecting the bank’s strong user engagement and service effectiveness. Revolut, in its annual report, shows similarly impressive stats. The bank experienced a 68% rise in customers using Revolut as their primary account, with revenue skyrocketing 95% to £1.80 billion. Net profit hit £344 million, and profit before tax soared to £438 million. The number of monthly transactions grew from 341 million to 590 million, among 38 million clients, this averages out to 15.5 transactions per user per month, showcasing daily usage rates. This leads to increased total customer balances by 38%, from £13.2 billion to £18.2 billion. It's becoming clear that these figures are starting to look very similar to incumbents. With neobanks offering rich, personalizable, real-time, and highly self-service banking experiences, the pressure is on.

Good stuff in this article "Who’s hooked more on credit cards and other plastic, U.S. consumers or their banks?" "While instant payments and #paybybank are increasing their presence in the U.S., and the popularity of digital wallets continues to grow, traditional credit card bank issuers won’t be able to successfully — that is, profitably— adapt to the evolving payments landscape until they figure out how to create value from these new streams."

Cross-border payments are getting disrupted — do you know why? One word: fintechs. Already, over 40% of banks have already lost at least 5% of market share to fintechs, and 89% expect they could take at least another 5% in the next five to 10 years, according to a Citi survey. Fintechs like Wise, Ripple and Revolut have moved into this market with multi-currency payment apps and wallets that make cross-border payments faster, cheaper and more convenient. Banks have been slow to react. Don't miss Charles Gorrivan's latest piece.

🌟 Neobanks: The Future of Banking? 🌟 Neobanks like Revolut, Monzo, and N26 are rapidly gaining ground, they make significantly less revenue per user compared to traditional banking giants: - **N26:** $40 per user (8 million users) - **Revolut:** $61 per user (38 million users) - **Monzo:** $122 per user (9.3 million users) - **Starling Bank:** $210 per user (4.2 million users) In contrast: - **Deutsche Bank:** $1,640 per user (19 million users) - **BNP Paribas:** $1,702 per user (29 million users) - **HSBC UK:** $4,562 per user (14.7 million users) Neobanks operate on 35-75x less revenue per user than traditional banks. This gap stems from their focus on low fees and consumer-centric products like checking accounts and personal loans, prioritizing rapid user growth over high-revenue offerings. While traditional banks leverage deep relationships and experience to offer high-value products like home loans and corporate finance, serving fewer customers but driving higher value, neobanks are starting to explore these areas. The question remains: Can neobanks compete with banking incumbents? Would you consider using a neobank for your business finance or home loan needs? Share your thoughts! 💬

18-34 year olds: 40% do use, or would use, Cash App as their primary bank. Also 18-34 year olds: 45% want access to a physical branch. 🤔 My takeaway: while digital banks won't likely build physical branches, community banks can absolutely build competitive digital banking experiences. Offering relationship banking both in-person and online is a winning combination. Survey source and full article via James Pothen, Banking Dive: https://lnkd.in/enuVDgFV #communitybanks #communitybanking #banklocal #bankingtrends