EXPERT VIEW by Jordan Graison, Head of Sales, Limonetik
The neobank sector is booming and the implementation of the PSD2 in mid-September 2019 has definitely something to do with it. Two new types of players are emerging: AISPs (Account Information Service Provider) and PISPs (Payment Initiation Service Provider). This new legal framework, along with the creation of EMIs (Electronic Money Institutions) supported by PSD1, is about to revolutionise user interaction but, most of all, contribute to the rise of the neobank.
Neobanks, startups, big banks, and big non-banking companies, all aim to gain a foothold in the new market of innovative retail banking.
Because of their totally virtual services, neobanks can be considered ‘imperfect’. They do not offer all the services of a traditional bank and are still unable to measure up, not only because of service delivery or regulatory problems, but also for lack of bank capital.