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I should have specified that I'm talking about EU-based neobanks, which are all real banks as far as I am aware (some are entities of bigger banking groups, som
by sofixa 4y ago
I should have specified that I'm talking about EU-based neobanks, which are all real banks as far as I am aware (some are entities of bigger banking groups, some are standalone startups).
US banking being largely obsolete as a whole (checks? paid wire transfers that take days to arrive?) probably explains why there are no real neobanks in the US and they're all just a UI in front of a legacy bank. I doubt it has much to do with regulations, because I really doubt US banks are more heavily regulated than EU banks, who also have country differences to deal with if they operate in multiple countries (Revolut, N26), and they also have to check if the customers are American tax residents and handle that case too (or simply refuse them to become customers as some banks do).
- iLoveOncall 4y agoMost of EU-based neobanks are NOT real banks. 90% of them are just a frontend. Even Revolut that you cite was just a frontend until January 2021 where it became a bank, but just in the UK: https://en.wikipedia.org/wiki/Revolut#History https://en.wikipedia.org/wiki/Revolut#History
- sofixa 4y ago> In December 2018, Revolut secured a Challenger bank licence from the European Central Bank, facilitated by the Bank of Lithuania, authorising it to accept deposits and offer consumer credits, but not to provide investment services. At the same time, an Electronic Money Institution licence was also issued by the Bank of Lithuania. What are you talking about? Revolut is a real bank, same as Monzo, N26, Aumax (part of a larger banking group so it hardly counts), Kard. Specifically regarding Revolut, they are a real bank in multiple countries now - UK, Lithuania, US and a bunch of other European countries.
- Reason077 4y agoRevolut does not have a bank license in the UK. They've applied, but it has not yet been granted.
- arohner 4y agoRevolut is not a bank in the UK
- Reason077 4y agoRevolut has applied for a UK banking license (PRA and FCA authorisations), but they seem to be encountering difficulties and delays in having them granted. Revolut's links to Russia are, perhaps, not helping with that.