Neobanks are considered by some to be the future of banking. According to the latest Neobanking Market Report, growth is expected at a compounded annual rate topping 50% through 2030. It’s an impressive projection, but like all financial institutions, economic uncertainty and a looming recession threaten that outlook.
As neobanks fight to gain traction, they face higher costs of doing business, rising interest rates and competition from both traditional banks and other innovators. Simple, considered the first neobank in the United States, shut its doors last winter amidst rising pressures and Varo, among others, has recently announced layoffs. Efforts to reach profitability are proving elusive for most neobanks: A recent report found that of the world’s 400 or so neobanks, fewer than 20 are running in the black.
GSTechnologies (LON:GST) overall development of the group includes large customer accounts and growing their blockchain payment and financial services business, with blue sky opportunities in new Disruptive Technologies with synergy to their existing business.
