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SME Neo-Banks | Global Overview

Updated: Nov 9, 2020

Whats #Neo in SME Banking ?


Neo-banks, especially the ones focused on SME sector, has emerged as #AntiFragiles in #FinTech with massive digitalisation sweeping across the SME sector in the time of pandemic.


Key trends across the globe in the SME Neo-Banking space:


1. Creative-destruction needs a fresh perspective is well established with 66% of Neo-banks' founders being outsiders.


2.#Chinese SME Neo-banks are unique in their ownership (owned by the #TechFins) with a unique business model which is intertwined with their parents' business model. This helps them embed banking in the core-product offerings and enables them to acquire millions of customers super-efficiently.


3. #Europe being the breeding ground for Neo-Banks, maintains a lead in terms of Number of Neo-banks with #Banking-as-a-Service, #OpenBanking and #MarketPlace Banking as key operating models.


4. In #India, the sustained creation of digital public infrastructure (#OCEN being the latest one), along with the govt. focus to revive the MSME sector and players who are digitalising the SME value-chains, presents a unique opportunity for SME Neo Banks.


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