As we would have recently heard Revolut was facing significant issue with its banking license even after catering to 1000s of customers who are currently using this neo-challenger "bank". Many banks dream to have the kind of mobile application like Revolut while Revolut is trying trying to become and official "bank".
This problems stems a lot from the legacy data and tech stack which these banks have been operating on from the past decades and transferring data is much harder than one can imagine especially while conforming to all the norms set by the regulatory bodies. Then come in these Neo-banks who have been born on the cloud, known as "cloud native" and they can leverage all the benefits of the cloud like speed, efficiency and most important cost.
If anyone has compared the banking Application of the Neo-Banks like Revolut, Monzo or chase they will notice the speed and convenience to them. Meanwhile all the traditional banking applications seem to be struggling to keep up with that standard. Even though these banking institutions have billions in their firepower, their journey to be making their mobile applications smoother is much harder than people would imagine.
The new neo banks are also facing a cost advantage in terms of not having a physical present at all or retail banking outlets, being totally online supports their bottom-line. Recent estimates have shown the number of physical banking outlets are decreasing heavily in the UK which could leave the more vulnerable worse off as they are more likely to need the human interaction and support.
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