How neobanks’ business models challenge traditional banks

The banking sector in developed countries has been dominated by a small number of established institutions for many years, with new entrants struggling to gain a foothold. But changes in regulations and customers’ behaviour in recent years have opened up new opportunities. Neobanks are a new form of direct bank that have emerged in the last decade and are seeking to challenge the traditional banking business model. This article will map out the emergence of neobanks and outline how they create value from their business models, as well as assess their impact on the industry in Europe thus far, including on Denmark’s fintech sector.