As the world slowly recovers from the pandemic and fintech startups ready themselves for the new normal, their operating models are facing a new and significant challenge in the wake of the recent mergers and acquisitions from the banking sector.Based on our ongoing analysis of the neo-banking & digital challenger banking space, we believe that neobanks who cater to small and mid-size businesses (SMBs), will emerge as significant players in the fintech ecosystem in the coming years.In this article, we analyse the way SMB neobanks operate in the US and the challenges and opportunities that they face in the wake of the recent banks’ M&As.SMB Neobanks: Overview & Customer Segment FocusSMBs are usually the backbone of a country’s economy in terms of generating significant employment opportunities and contributing massively to international trade. However, the segment itself is extremely fragmented in terms of size, life stage and nature of individual firms who operate in it. Owing to this fragmentation, SMBs are often overlooked by the megabanks and do not have comprehensive access to personalised and contextual banking services. Even FinTechs that earlier concentrated on SMBs, focused only on specific point solutions such as card acquiring, lending, accounting etc. and did not […]