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
    Complimentary Research

    Payment Platforms’ New Side Hustle Remember when payment pros caught the digital payment craze during the pandemic? Well, as the...

    Complimentary Research

    SMB Financing: Cat Bath or Credit Path? For small and midsize businesses (SMBs), trying to get a loan from traditional...

    Complimentary Research

    Swipe, Splurge, Savor: E-comm’s New Norm! What’s more fun than a Sunday shopping spree, right? Picture this: you on your...

    Complimentary Research

    Drive Safe, Fly Secure: Embedded Insurance Escapade The travel and mobility sectors are roaring back to life now that the...

    Complimentary Research

    Insurtechs: The New Guardians of the Gigaxy? Life in the gig lane is a rollercoaster, isn’t it? You’ve got the...

    Complimentary Research

    We’re going to go ahead and say it – 2023 is the year for embedded finance. This not-so-sneaky little trend...

    Select currency