In 2020, UK neobanks expanded their reach through marketing and brand awareness, aiming to establish themselves as regular banks amid evolving regulations. Digital lending is disrupting traditional banking, catering to underbanked and younger borrowers with lower fees and faster access to cash. While traditional banks investing in digital transformation show potential for growth and customer retention, neobanks still struggle with brand awareness and customer trust.

1. WHAT’S IN IT FOR
FINTECH IN 2020?

2. 02
In 2019 the UK neobanks started with a wide reach marketing,
offer expansion and brand awareness campaigns
Gaining diverse clientele means steering communication in more
channels, like call centers and personal advisors
This means a step closer to being ‘just a regular bank’, including
banking regulation
1. Neobanks – they won't remain
challangers forever

3. 03
we can already witness micro-saving functionalities
online lending is the first sign of digital disruption. It primarily serves
three groups: the underbanked, marginally creditworthy borrowers,
and younger individuals who find non-bank alternatives appealing.
Lower interest rates and fees and faster access to cash -
marketplace lending is on the rise with young generation.
2. Neobanks – more than a bank
account

4. 04
3. Digitally committed traditional banks are
well equipped for the future of banking
Digital transformation is a pricey decision that impacts short-term
revenues.
Researches show that the banks investing in innovation show
promising predictions for future growth and, as such, are
grabbing attention of investors.
only 12% of banks are fully digitally committed. As such, those
banks hold a firm position in remaining the customer’s bank of
choice.

5. 05
Neobanks still lack brand awareness and while digital leaders may
be the winners of innovation, they’re yet to win over the customers.
though digitalization attempts don’t seem to directly affect business,
the distance between digitally committed banks and those that
neglect is widening
‘The evolution of banking remains rooted in trust and relationship,
but how this is achieved is changing.’ (PwC)
So, can neobanks take over the market?