This inaugural scorecard, weighted based on responses to a primary consumer survey, ranks the four largest US neobanks by user count according to their advanced mobile banking capabilities. The report presents detailed benchmarking data on the availability of 47 mobile features, selected by analysts based on the features’ propensity to help neobanks differentiate themselves from competitors. It is a companion to the 2020 US Mobile Banking Competitive Edge Report, which ranks the 25 largest US financial institutions by assets.

Revolut is up against significant competition from consumer-facing and business-focused neobanks vying for market share in the US. It faces an uphill battle against established, retail-oriented challengers. Some of the most visible US neobanks—like Chime and Varo—have been operating in the country for the better part of the last decade.

Monzo has gained good—if not dazzling—traction with its paid accounts as it attempts to match pace with its UK neobank rivals.

Mexico has become a hotspot for neobank expansion, but Nubank seems best positioned to gain the most market share. Challenger bank activity in the area has lived up to expectations. At the outset of 2020, Insider Intelligence predicted that Mexico would be a top neobank market to watch over the year. Since then, several digital banks have begun to broaden their presence in the country.

The unexpected decline in valuation shouldn’t create a crisis of confidence for the neobank. Here are two reasons why:. Atom’s straightforward approach to banking is showing promising results.

Funding Options isn’t Starling’s first lending partner: The neobank teamed up with Funding Circle in May 2020 to issue £300 million ($384.7 million) worth of CBILS loans through Funding Circle's platform.

But after a year of turmoil, two of the UK’s highest-profile neobanks are seeing signs of better days ahead, the Financial Times reports:. Revolut sees promise in the US market. The neobank originally planned to campaign for customer acquisition in earnest last March, but put those plans on hold with the advent of the pandemic.

High-yield savings accounts are a key factor historically used by neobanks to attract users, but central bank interest rate cuts in multiple countries over the past year have forced neobanks across the board to gradually lower their own interest rates. Therefore, the introduction of Koho Save could be especially timely and make the neobank stand out to prospective customers.

Most recently, the neobank added a PensionBee integration that allows self-employed business owners to set up a pension from scratch. In addition to its current lineup, Starling could provide payroll or marketing plug-ins that would tie businesses more closely to its offerings and centralize more of their operations within the neobank, making for a stickier customer base.

The two retailers would be able to centralize a customer’s errands in a single location, and they likely have decades of experience servicing the clientele neobanks have only recently turned to.

The UK incumbent is introducing a revamped retail banking model aimed at boosting revenues and reclaiming market share from neobanks, per the Financial Times. The improved platform will utilize video to increase access to human bankers, offer new low-risk investment products for mass market savers, and expand NatWest’s credit solutions.

The UK-based neobank is ending its operations in Canada after rolling out a beta version of its app locally a year and a half ago, per BetaKit. Revolut had plans to provide its full-fledged products and services in the country, but never officially launched, so it’s unclear how many users the app actually had.

CEO Anne Boden expects the neobank will hold 18% of the UK’s small- and medium-sized business (SMB) market in the next five years, up from its current 4.4% market share, according to Insider.co.uk. Boden cites Starling’s technology as key to reaching this goal.

The news: The UK neobank has earmarked an investment of $20 million–$25 million to break into India by the end of 2021, CEO Nikolay Storonsky told Business Insider India. More on this: Revolut plans to apply for a payments and trade license in the country, but is also considering acquiring an existing Indian fintech to speed along the licensing process.

The UK-based neobank obtained a specialized license from the Bank of Lithuania and is leveraging passporting rules to operate in other countries like Greece and Romania, TechCrunch reports. For existing users in those markets, Revolut can offer lending products like credit cards and personal loans.

SoFi’s new approach to becoming a nationally chartered bank could inspire other well-funded neobanks and tech companies to do the same. Purchasing Golden Pacific allows SoFi to switch from a de novo to a change-of-control application, ultimately speeding up its process of becoming a bank.

The competitive threat of fintechs from other areas of financial services is mounting against neobanks. Established fintechs with banking ambitions can build upon their loyal user bases from their flagship products, whereas neobanks typically launch banking services as their main product from the ground up.

In the first half of this report, Insider Intelligence looks more closely at the difference between direct banks and neobanks and the pressures and advantages unique to both camps; and also at the macroeconomic factors we expect to affect digital-only banks in all three geographies included in this forecast.