Neo-Bank
- tags
- Bank
Fintech #
Neobanks, sometimes referred to as “challenger banks,” are Fintech firms that offer apps, software and other technologies to streamline mobile and online banking. These fintechs generally specialize in particular financial products, like checking and savings accounts. They also tend to be more nimble and transparent than their megabank counterparts, even though many of them partner with such institutions to insure their financial products.
They are not actual banks but tech companies that partner with regional banks such as Sutton Bank, Bancrop or Meta Bank. These regional banks have less than 10$ Billion in assets and are able to charge a higher interchange rate, to merchant, because they are considered exempt from the interchange rules set forth by Durbin Amendment.