The 'Neo-Banks' Are Finally Having Their Moment - The New York Times - 0 views
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Venture capitalists are pouring money into American start-ups that are offering basic banking services — known as neo-banks or challenger banks. In 2018 so far, American neo-banks have gotten four times as much funding as they did last year, and 10 times as much funding as they did in 2015, according to data from CB Insights.
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The new financial outfits are trying to replace the old, branch-based way of banking with a mobile phone-friendly account that does away with the fees that have made banking giants so unpopular.
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“If you look ahead five years, there’s no way there will be a financial services industry that is charging consumers $30 billion a year in overdraft fees,” said Chris Britt, the chief executive of Chime. “We aim to shake that up, and I think a lot of other consumer companies will be doing the same thing.”
