In Europe we typically use neobank (or challenger bank) for VC-funded fintech startups that offer mobile-first retail banking (sometimes without a proper bankin

In Europe we typically use neobank (or challenger bank) for VC-funded fintech startups that offer mobile-first retail banking (sometimes without a proper banking license at first). They started appearing ~10 years ago. Direct or online banks come from big banking groups but aren't always direct subsidiaries. Most of them seized an opportunity to enter a market with no or little physical presence. ING did that in several European countries, and scaled back, since then. I believe it started around 1999/2000 for the earliest players.