Neobanks are going head to head with their big bank rivals (and each other) in the savings market as interest rates hit their highest levels since 2008.
Image source: Pexels/Maitree Rimthong
Cash is king in the world of fintech startups.
While this normally refers to the importance of not running out of the old stuff, it is also true as a customer acquisition strategy.
Neobanks, and their Big Bank rivals, are increasingly targeting customers’ cash deposits with market-leading rates on cash in a battle of ever-increasing intensity.
At a time when banks are finally starting to be scrutinised for not passing on the increased rates they impose on borrowers to the ones they pay savers, this could mean a hugely shifting landscape for neobanks’ rates of growth.
This week the CEOs of four of the largest UK banks – Lloyds’ Charlie Nunn, NatWest’s Dame Alison Rose, Barclay’s Matt Hammerstein and HSBC’s Ian Stuart – faced a grilling from MPs over the issue.
At the end of 2022, I covered what was amounting to a ‘fintech savings arms…