Can neobanks’ popularity outlast the pandemic?
The fintechs saw a surge of interest during lockdown. Now to turn a profit
![](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/sites/default/files/images/2021/08/articles/main/20210821_fnp503.jpg)
“WHAT DO YOU think we are, a bank?” scoffs an advertisement for Current, a neobank, on New York’s subway. It goes on to paint bank branches, poor customer service and overdraft fees as relics. The company is one of a hundred-odd “neobanks” vying to shake up retail banking in America, and which have exploded in size and number in the past year. On August 13th Chime, the country’s biggest neobank, raised a round of funding that valued it at $25bn—about the same as America’s 13th largest listed bank.
This article appeared in the Finance & economics section of the print edition under the headline “New tricks”
More from Finance & economics
![](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20240921_FNP501.jpg)
The Federal Reserve’s interest-rate cuts may disappoint investors
Jerome Powell could still surprise on the hawkish side
![](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20240921_FND002.jpg)
How China’s communists fell in love with privatisation
Even though they are not very good at it
![](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20240914_FNP506.jpg)
Norway’s weak currency presents a mystery
The country’s economy is thriving yet the krone is becoming less and less valuable. What’s going on?
An American sovereign-wealth fund is a risky idea
Donald Trump’s latest proposal has worryingly broad support
Can bonds keep beating stocks?
After a terrible couple of months for shareholders, lenders are feeling smug
Why orange juice has never been more expensive
Pity those who rely on the breakfast staple