WhiteSight

Cracking the profitability code of successful digital banks

Table of Contents

The rise of digital banks has been one of the most significant trends in the financial services industry in recent years. While many digital banks have gained a significant following among digital-savvy consumers, the truth is that profitability remains elusive for most of them. In fact, only a handful of digital banks have been able to register profitability.In today’s environment, profitability is paramount for the continued survival of digital banks. High inflation and interest rates affect the cost of capital and credit, making it challenging for digital banks to operate with low margins. Secondly, venture capital funding for digital banks has decreased, making it challenging for them to sustain growth without generating consistent profits. Finally, regulatory scrutiny on the profitability of digital banks is increasing, with authorities requiring them to demonstrate a sustainable business model.This blog will explore the various factors that contribute to the profitability of digital banks, such as lending, technology monetisation, SME banking, customer base monetisation, and marketplaces, and how they can help digital banks achieve their growth goals.Disclaimer:The scope of this study is limited to digital banks that operate and report their financials as standalone entities, even when they are owned by financial or non-financial organisations. […]

This post is only available to members.

Already a subscriber? Log in to Access

Unlock this blog

Gain exclusive access to this blog alone.

Radar Subscription

Select a membership plan that resonates with your
goals and aspirations.

Not Ready to Subscribe?

Experience a taste of our expert research with a complimentary guest account.

We publish new research regularly. Subscribe to stay updated.
No spam. Only the best in class fintech analysis.



    Related Posts
    Table showing fintech companies, their license types, license status, regulators, geography, and license objectives as of April and March 2025.
    Complimentary Research
    Infographic showing the growth of digital payments in Saudi Arabia, including e-commerce (Mada Card), bill payments (SADAD), card payments (PoS), and instant payments (sarie) from 2022 to 2024.
    Complimentary Research
    Infographic overview showing different types of loans given by Nubank in Latin America, like FGTS Birthday Withdrawal Anticipation, Investment-backed Loans, and Payroll Loans for federal employees, retirees, armed forces, state and municipal employees, and private sector.
    Complimentary Research
    Infographic design showcasing business banking services in Brazil from Itaú, Nubank, Inter, and C6, highlighting offerings like accounts, cards, payments, and POS solutions.
    Complimentary Research
    Table comparing retail banking services in Brazil between incumbent bank Itau and digital banks Nubank, Inter, and C6 Bank, showing checkmarks for available services.
    Complimentary Research
    A timeline infographic depicting the regulatory and market-driven adoption of open finance in the UAE from 2020 to 2025.
    Complimentary Research
    Select currency
    WS_Logo_-for-White-BG-01.png