Small Business Neobanks Are Outflanking Traditional FIs
- Date:November 21, 2022
- Author(s):
- Ian Benton
- Report Details: 21 pages, 9 graphics
- Research Topic(s):
- Small Business
- PAID CONTENT
Overview
Small business neobanks have become a bona fide threat, especially for community financial institutions. A growing number of neobanks are competing to serve small businesses, fueled in part by the need for tech-driven financial services during the COVID pandemic and growth in the large and diverse freelancer market. Neobanks make compelling alternatives because their features are far more advanced and extensive than those from traditional FIs, some cater specifically to freelancers, and they continue to innovate faster than traditional FIs. Nonetheless, community FIs can counter neobanks by emulating their strengths and exploiting their weaknesses.
Key questions discussed in this report:
- Do small business neobanks pose a threat to FIs, and which neobanks stand apart?
- What are small business neobank table stakes features that go beyond traditional digital banking?
- What are their specialty features?
- How are neobanks serving freelancers and sole proprietors?
- What countermeasures can incumbent financial institutions employ?
Companies Mentioned:
Airbnb, Amazon, Arival, Azlo, Bank of America, Baselane, BetterHelp, biz2credit, Bluevine, Brex, bunny.money, Celtic Bank, Citibank, DoorDash, eBay, Etsy, Found, Grasshopper, Guava, Highbeam, Instacart, Joust, Kabbage, Lance, Lendency, Lili, Lyft, Mercury, Move Financial, Nearside, Northone, Novo, Oxygen, Paypal, Quicken, Relay, Shopify, Simple, Square, Stripe, Talkspace, Teladoc, Treasure Financial, Uber, Venmo, Vergo, Viably, Wave, Wells Fargo, Winden, Wise, WooCommerce, Xero, Zilbank
Learn More About This Report & Javelin
Related content
Tap to Pay Brings Mobile Payment Acceptance to the Banking App
Chase and TD Bank are blazing the trail for financial institutions to build mobile tap-to-pay technology into their banking apps to enable microbusinesses, sole proprietors, and fr...
Mapping Out the Generative AI Future at Three Large Fintechs
Over the past five years, Javelin Strategy & Research has persistently raised the alarm about the escalating influence of three dominant fintech platforms—Intuit, Block, and PayPal...
Customer Service Upgraded: Four Ways Digital Can Make Small-Business Banking Human Again
For small-business owners, banking is not just a series of transactions but also a pivotal part of their long-term business strategy and growth. They seek a banking partner that un...
Make informed decisions in a digital financial world