Neobank

A neobank is a bank with no branches, built mobile-first — Revolut, N26, Monzo, Chime. Two models hide under the name: full-stack neobanks that got their own banking licence (N26, Monzo) and run the whole thing, and BaaS-based neobanks that partner with a chartered bank in the background and focus on product and brand (Chime, most US neobanks). The advantage over legacy banks isn't really cost — it's iteration speed. A traditional bank ships features in quarters; a neobank ships weekly, so you get instant notifications, fee-free FX, budgeting built-in, and good APIs. Open banking made much of the category possible by letting neobanks plug into the existing rails without rebuilding them.