This third annual study ranks the four largest UK neobanks by customers based on their support of 49 emerging mobile banking features, weighted by consumer demand for each feature.

Starling posts a $44.1M profit as Varo Bank lays off 10% of its staff and plans to restructure.

UK-based Monese’s in-house Credit Builder product lets customers develop credit histories through savings deposits. The data could also grow its lending.

The UK-based neobank’s founder and CEO Anne Boden outlined plans to offer banking as a service globally in 2022, giving Starling a potential opening into embedded finance.

This report explores what’s driving UK neobanks’ growth and how incumbents can defend their share of the digital bank account holder market.

It’s not alone in the race. An influx of new BaaS entrants indicates the emergence of an industry to underpin embedded banking.

Over the past five years, neobanks have advanced on two fronts: user growth and richness of mobile functionality. But they’re still chasing profitability, launching new financial services offerings and reserving some of their most innovative features for paying customers. This second annual study stacks up the top four UK neobanks against one another, scoring their mobile app capabilities based on consumer demand for 48 emerging features.

The UK neobank’s banking as a service offering could open up a promising business line—helping nonbanks to offer banking products that interest consumers.

New insurance features and an added subscription tier could help Monese expand into more profitable lines of business.