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 […]