3 prominent Neobanks transforming the banking industry in The States

By Edlyn Cardoza

Neobanks and challenger banks are well-positioned to meet the digital challenges and garner the benefits of the new digital economy. As the market is transforming, they are shaking up the traditional branch-based banking systems and pushing the industry to become more agile and competitive.

The results have become a big win for consumers who want banking services and not just banks. Consumers and financial institutions are deftly adapting to the rising demands of a tech-accelerated and pandemic-impacted world, which have presented an array of solutions, ideas, and opportunities to the banking sector’s difficulties. 

The digital transformations have paved the way for the birth of neobanks in the USA, forming the springboard for what 2022 is to unfold. Here are 3 neobanks setting their mark to revolutionise banking in the States in 2022:

• Chime

Chime was created with the mission to make financial peace of mind a reality for millions of Americans. They are one of the fastest-growing financial technology companies in the U.S., offering banking services that are helpful, easy, and free. Chime partners with regional banks to design member-first financial products. This creates a more competitive market with better, lower-cost options for everyday Americans who aren’t being served well by traditional banks.

They offer access to bank accounts with fee-free overdraft, provide members with the chance to receive early access to their paychecks, help them improve their credit, and more!

• Current

Current is a leading U.S. financial technology platform serving the needs of Americans who are working to create a better future for themselves. Its mission is to enable members to change their lives by creating better financial outcomes. Leveraging the best technology, they deliver inspirational and motivational products as we all move forward in a world of increasing digitisation and complexity.

Current is bringing premium financial services to everyone with various modern lifestyles to help improve their financial outcomes. The Current Core, their custom-built banking technology, makes this possible by providing greater stability, faster money, and cost efficiencies that we pass on to our community of members.

• Varo Bank

Varo is an entirely new kind of bank. All digital, mission-driven, FDIC insured and designed for how their customers live their lives. They are working toward their mission with a team that uniquely and strategically combines banking veterans with technology experts. The banking experts provide decades of industry experience, and the tech experts can build a mobile app that offers everyone access to premium banking, including quicker access to your money, high-yield savings, and automatic saving tools.

Varo has raised over $992.4 million from leading institutional investors and strategic partners, including Warburg Pincus, The Rise Fund, Gallatin Point Capital, Harbourvest Partners, Progressive Insurance, Russell Westbrook Enterprises, and Lone Pine Capital. Varo.

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