Neobanks currently make up the fastest growing segment of fintechs. With online-only banking services, neobanks differentiate themselves by offering unique customization to banking, unlike the one-size-fits-all services that more legacy institutions offer. And they are best known for personalization of the user experience, hooking into an individual’s emotional and motivational interests.
Neobanks are relatively new but are quickly becoming consumer favorites, particularly with younger demographics, and they are sprouting up daily. Because of their high growth, neobanks are experiencing more recognition and subsequent funding in recent years. And in response, more traditional banks and credit unions are beginning to adopt features of neobanks such as personalized insights, digitally integrated tools, and unique rewards for members.
Below are our seven favorite neobanks that are all doing their part to disrupt the financial industry and change the way people bank:
Bella is a neobank powered by love. Their mission is to reinvent traditional banking while spreading kindness and generosity. For each purchase made with a Bella debit card, users randomly receive between 5% - 200% cash back which can be put back into their checking account, paid forward to other users, or donated to a favorite charity.
In the spirit of generosity and kindness, other Bella members you may not know can pick up your tab. Instead of monitoring credit scores, Bella created a new banking metric called “Karma Score,” the first score to measure acts of love and generosity. As Karma Scores increase, users unlock more special surprises. Bella is all about boosting karma and spreading kindness through banking – not to mention their debit cards are made out of recycled ocean plastics!
Learn more about Bella https://www.bellaloves.me/
Every year, large banks fund dangerous fossil fuel projects from their customers’ accounts. Aspiration is a neobank with climate change in mind. They have pledged to never use the savings and debit card purchases of users to fund the oil or coal industries, unlike other big players in the industry. Aspiration has estimated a $167,447,175 that has been saved from funding fossil fuel operations. Every $1,000 customers transfer to an Aspiration account has the environmental impact of 6,000 fewer miles driven by the average car!
Customers can decide with each purchase made on an Aspiration debit card if they would like to round up to the nearest dollar to plant a tree to restore and protect biodiversity, enhance native ecosystems, and support local communities. Going even further, Aspiration donates 10% of every dollar their customers pay to them to charities benefitting struggling Americans. Aspiration is a bank that allows users to feel guilt-free about where their money is going.
Learn more about Aspiration https://www.aspiration.com/
African Americans spend 50% more on banking services and earn up to $1 million less in their lifetime than their caucasion counterparts. The story of MoCaFi began in 2014, with an African American Wall Street executive, Wole Coaxum, and a mission of addressing these existing social inequalities in banking. Now, MoCaFi is a reformist neobank currently serving 50 million Americans who are underbanked, or with no bank at all. They provide tools to help MoCaFi users grow their financial wealth, including credit scores, spending trackers and a portal to help users find the best and most affordable health insurance plans.
Their “Represent” cash back program creates a way for cardholders to support Black and Latinx entrepreneurs by giving up to 3% cash back on each purchase made with select MoCaFi Represent Brands. MoCaFi also built a reward program called “MoCaFi Moments,” designed to surprise nominated account holders with a relaxing treat to help them take their mind off everyday hardships and relax – and rewards are always in the account owner’s local community. MoCaFi supports emerging entrepreneurs and local communities while closing the racial wealth gap.
Learn more about MoCaFi https://mocafi.com/
Revolut is a neobank made for world travelers. Revolut allows users to hold and transfer money in more than 30 currencies worldwide while letting them spend in over 150 currencies at the market exchange rate. They don’t charge fees for exchanging standard currencies and provide full pricing transparency before users make an exchange.
Revolut knows that traveling comes with large ATM withdrawal fees, which is why they cover no cost ATM withdrawals for up to $300 per month. No matter where Revolut customers are in the world, they can easily send and request money from friends and family. They also encourage smart budgeting to end overspending and help users save more – perhaps for their next big adventure!
Learn more about Revolut https://www.revolut.com/en-US
MoneyLion is a neobank that motivates its users to reach their highest level of financial health through investing. They have integrated a number of tools into their digital app to make investing easier than ever. Their “Round Ups” feature allows members to round their spare change into an investment account automatically. And with the MoneyLion debit card users can earn cash back on every purchase they make that can be added back into their checking account or into an investment account.
These investment accounts are fully managed portfolios with no management fees or minimums to get their customers working toward a better financial future. MoneyLion members can change the level of risk of their portfolio at any time and get a personalized mix of stock and bond ETFs that are just right for them. Account holders can choose to take money out at any time, or continue to let it grow. MoneyLion also allows users to invest in their interests or passions, such as technology innovation or social responsibility, with their thematic investing feature. And, with MoneyLion Crypto, users can win up to $1 million in cryptocurrency sweepstakes!
Learn more about MoneyLion https://www.moneylion.com/
Dave is a neobank that uses empathy to understand struggling Americans and their needs. They want to change their members’ lives by building products to help them financially. Dave gets that sometimes people need a little extra help covering a bill, which is why they offer up to a $200 advance on a user's next paycheck that they can pay back when it arrives – all without interest or a credit check. Also committed to helping members to grow their credit, they report rent payments to major credit bureaus.
Dave also helps account holders to say goodbye to fees. Unlike the big banks that charged Americans $34 billion in overdraft fees in 2020 alone, Dave believes it's fundamentally wrong to charge overdraft fees when people are financially struggling. They have completely eliminated overdraft and minimum balance fees. And, they have eliminated fees from a total of 32,000 ATM’s. Dave operates with empathy to understand and support each and every one of its 10 million users.
Learn more about Dave https://dave.com/
Step knows it's hard to learn how to be good with money. Many schools don’t teach it, and lots of families don’t talk about it. Step is a neobank committed to providing families and their teens with tools to help improve the financial literacy and future of the next generation.
For teens, there are no fees, great rewards, credit-building opportunities, and the ability to easily send and receive money. And even better for parents, they can set up recurring allowance payments, monitor spending, freeze accounts, and have the peace of mind knowing their teen is heading in the right direction financially.
Learn more about Step https://step.com/
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