⚡️ Clash of the #neobanks ⚡️

A short thread on the distinct strategies of British neo-banks @monzo @StarlingBank @RevolutApp

@sanjeevk_k @PriyamoniD #fintech
#1 Go-to-market Strategy

While Monzo & Revolut both went the #partnership way at launch, Starling Bank took its time with #licensing & building its own technological capabilities.
The result?

⚡️Revolut saw rapid uptake but hasn't been able to tap deposits & #lending

⚡️Monzo switched to native capabilities via banking license - interest income cha-ching!

⚡️Starling has diverse revenue streams - talk interest income, interchange, commission & #BaaS
#2 Product Portfolio

While Monzo & Starling haven't touched #Investing yet, Revolut takes the cake with #crypto #stocktrading & #gold 💰

The real competition has now however moved onto #businessbanking. These past months Starling has grown its loan book 18x to £1 billion
#3 Customer Acquisition

Clearly, there's no beating Revolut when it comes to user base. 🌍 It's available in 35 countries & recently announced its public launch in Japan. 🇯🇵

While Monzo, too, has gone international with USA, it is yet to see traction in the market.
#5 Financials

End of the day it all comes down to numbers.

Rapid revenue growth overshadowed by costs is a common factor across the 3 neo-banks.

Compared to the UK #Big4 banks, they lack in optimising their deposit bases to lend. Interest income WYA? 👀
#6 Future Outlook

⚡️Monzo is going the #subscription route & pushing the gas on lending

⚡️Starling is SME all the way - business #marketplace, paid products, government-backed loans

⚡️Revolut is going the #SuperApp way and they've got their infinity gauntlet almost ready
A lot remains to unfold in this saga, but the hype sure isn't dying down anytime soon.

Find our complete comparative analysis deck here - https://bit.ly/35tJKkj 
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