50 Shades of Grey
“50 Shades of Grey”– a cartoon that illustrates the limited range of products that challenger banks are bringing to the market.
According to Statistica, there are over 50 Neo banks in the US, with many of them promising product innovation to service new customer types and services.
However, the range of products has been somewhat underwhelming.
All of the Neo banks have gone down the same path of launching with a debit card and digital wallet, and now extending to some form of crypto transactions.
Most recently, several of them realized (surprise!) that retail banking is a loss leader and now all are lemming-like creating subscription services.
As a comparison, when the heavily regulated telecoms industry was deregulated in the late 1990s, we saw a wide variety of new landline and mobile phone new entrants that competed aggressively on products, customers and services, which in turn created a healthy ecosystem of related phone products.
What are the reasons Neo banks are looking all so very grey?
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