WhiteSight

Neobanks’ New Normal: Dissecting the Failures and Setbacks

Table of Contents

The emergence, growth, and profitability of neobanks have always been a topic of discourse in the fintech sector. At WhiteSight, we’ve implored this curiosity by exploring the many themes around the neobanking ‘neo’velty. Whether it be climbing the hierarchy of their investment galore, following their SuperApp quest, or highlighting the exponential momentum in the space, the new battleground of neobanks has always kept us wondering about what’s cooking behind the scenes.2021 was a prolific year for neobanks. Several of them raised massive rounds of funding, became unicorns and decacorns, and expanded their global footprints. 2022 is proving to be a really challenging year for the sector. Intense scrutiny of regulators, a challenging economic environment, diminished funding & valuations, and growing fraud incidents have resulted in a sink or swim moment for neobanks. In this blog, we aim to analyse some of the past failures and setbacks in the sector to draw lessons from. We look at these incidents through the lens of four main perspectives:Shutdown: Cessation of operational activities due to fleeting measures to develop a sustainable revenue stream, inability to raise further funding, and M&A fallouts.Country Exit: Departure due to rising economic uncertainties (Brexit, Pandemic, economic slowdowns) in the […]

This post is only available to members. document.addEventListener('DOMContentLoaded', function() { console.log('social login script loaded'); // Use event delegation in case buttons are dynamically rendered document.body.addEventListener('click', function(e) { console.log('social login button clicked'); var btn = e.target.closest('.button-social-login'); if (btn) { // e.preventDefault(); // Disable button to prevent multiple clicks btn.style.pointerEvents = 'none'; btn.style.opacity = '0.6'; // Change button content to 'Please wait...' with a simple spinner btn.innerHTML = ' Please wait...'; // Add spinner animation style if not already present if (!document.getElementById('social-login-spinner-style')) { var style = document.createElement('style'); style.id = 'social-login-spinner-style'; style.innerHTML = '@keyframes spin {0%{transform:rotate(0deg);}100%{transform:rotate(360deg);}}'; document.head.appendChild(style); } } }); });

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
    Diagram showing Monzo's Flywheel (Everyday Engagement, Relationship Deepeners, Monetization) and their 4 Levers of Lending Strategy (Responsible Foundations, Credit Democratization, Ecosystem Integration, Portfolio Diversification).
    Open Access Blog
    Infographic detailing Monzo's product evolution from Short-term Pots (2017) to Medium-term Fixed Savings/Investments (2019/2023) and Long-term Pensions/SIPPs (2024/2025), showing adoption metrics and the resulting opportunity for Monzo.
    Complimentary Research
    Infographic detailing Revolut's strategic global expansion roadmap, including licenses, partnerships, and launch years in London, Europe, and North America (US/Canada).
    Complimentary Research

    Why Revolut Is Betting on the G7 to Cement Its Global Banking Ambition The G7 nations, comprising the United States,...

    Infographic detailing Monzo Business's revenue sources, monetization engine for sustainable growth and macro view of the UK SME business banking market, illustrating traditional bank versus challenger bank market share.
    Complimentary Research
    Nubank Featured-Image
    Complimentary Research
    Infographic comparing Monzo and Revolut subscription tiers (Extra, Perks, Max vs. Plus, Premium, Metal, Ultra). Includes cost, interest rates, insurance, fee-free cash withdrawals, investments, and partnership perks, along with subscription revenue growth for both companies from 2022 to 2024.
    Complimentary Research
    Select currency
    WS_Logo_-for-White-BG-01.png