The neobanking industry is estimated to be worth $300 billion, with 400 neobanks around the world. Despite mass consumer adoption and lots of attention, and capital, from investors, only 5% of neobanks are profitable.
In neobanking I would argue product-market-fit could be divided into two scenarios: “free-product-fit” and “margin-product-fit”. The “free-product-fit” is focused on growth and not profitability. Neobanks such as Revolut, Monzo and N26 nailed the “free-product-fit” and achieved impressive user adoption and growth in Europe. But they don’t have the profits to show for it. Interchange revenue from card programs is the main revenue source for top neobanks and no bank can survive, or turn a profit, on interchange revenue alone.
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.