Is COVID-19 Being Used As A Scapegoat For Neobanks’ Recent Sluggish Growth?

  • Source: Forbes.com

Treliant Takeaway:

As the COVID-19 coronavirus continues its destructive path throughout the world, digitally native FinTech companies and banks are benefiting from having an established digital-first infrastructure that enables them to maintain operations remotely, while offering a full suite of products and services and eliminating the need for a customer to enter a brick and mortar branch. Institutions that have been historically slow to adopt digital solutions face a host of challenges that are not only apparent in the current environment, but will continue to surface and grow in a post-COVID economy if the demand for in-person banking continues to contract.

Treliant’s seasoned professionals have a history of working with FinTech clients and traditional banks, and since we understand this industry, we can tailor risk-based compliance programs to meet the business needs of these innovative companies, their bank partners, and their investors.

Article Highlights:

FinTech companies and digital banks are well suited to emerge from the pandemic in great shape, so long as they can survive the shutdown.  With the rate of VC investments slowing and customers engaging in social distancing, digital banks have to make their latest round last and provide over the top customer care to set themselves up for what could be a rapid expansion post pandemic.  Now is the time for digital banks to focus on the future and how they can build a sustainable business in order to take on traditional banks.

Authors

Mark Kallal

Mark Kallal, Senior Director with Treliant, is a seasoned financial services professional with more than 20 years of experience building, managing and assessing compliance and risk management programs. Immediately prior to joining Treliant, Mark served as the Head of Compliance for a FinTech company that partnered with more than a…

Princeton Graham

Princeton Graham is a Consultant with Treliant and works predominately within the FinTech service area, but has worked on a number of engagements with the Fair and Responsible Banking and the Corporate and Regulatory Compliance service areas. Princeton assists leading FinTech companies and traditional financial services institutions with a broad…