Compliance risks loom for neobanks that ‘move fast and break things’: Digital-only banking players need to put anti-money laundering (AML) measures higher on their list of priorities and invest accordingly, a regulatory tech firm states in a new report.

The Europe-based neobank’s acknowledgment of an increasingly apparent reality and its soft retreat could indicate other foreign neobanks are struggling to crack the US market.

This could give it an even bigger edge over prominent challengers, should they choose to jump into mortgages.

Strong growth in the key metric for the first nine months of 2021 could foreshadow success in the incumbent bank’s other targeted plays and keep it competitive with neobanks.

Proximity and peer-to-peer mobile payments are on the rise in the UK, thanks to high user adoption of mobile and banking. However, growth is slow, which means that wallet providers looking to crack the market will need to get creative.

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.

Oportun's bank charter withdrawal is indicative of the increased regulatory scrutiny surrounding fintechs’ broader banking ambitions—and may also make other neobanks stop and think.

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

The US banking giant will launch its first international retail presence this week. Its resources, market experience, and patience about attaining profitability suggest that it could be a formidable player.

The UK neobank is the latest to join the hot and crowded installment-payments space—and cross-promotion to its 5 million users could ramp it up quickly.

A group of the country’s large banking players is hammering out a deal to jointly operate branches in underserved areas. If the agreement ends with more shuttered locations, it could prompt a backlash.

Monzo’s losses widen while its revenue stays strong: The UK neobank’s annual report reveals a mixed bag of news: Its deposits are soaring, but it’s the subject of a Financial Conduct Authority (FCA) probe. Its results show it’s less volatile than Revolut, but it’s missing Starling’s stability.

Starling’s maiden tie-up takes it deeper into lending: The challenger’s £50 million ($64.1 million) deal for specialty lender Fleet Mortgages lets Starling put its deposits to work and takes it into a space that’s not crowded with UK neobanks.

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.