Latest news with #Neobanks
Yahoo
05-07-2025
- Business
- Yahoo
Ally Bank Says This Is the Best Time To ‘Graduate' From Your Starter Bank
Millennial nostalgia is real — even when it comes to banking. That's the sentiment that Ally Bank is tapping into in their new campaign targeting millennials to 'graduate' from their starter banks to another bank account. Read Next: Find Out: The online bank worked with its agency, Anomaly, to create a marketing campaign that shows the generation can now 'Graduate Financially.' Ally found that nearly half of millennials still use their starter bank. The campaign features zany trends that dominated 2010 — from shutter shades to sepia filters. Ally partnered with millennial actor Taylor Lautner to spread the word. He recently shared how 'growth is part of the glow-up, in your style and your finances,' in a self-deprecating Instagram post featuring throwbacks to his 2011 style. As millennials move away from all the things they've outgrown, here's why a move towards a better bank should also be on the list. A new bank or banking account could be the natural segue for targeted budgeting, debt pay off or major life changes like marriage. Newer banks, especially neobanks (online only), may offer incentives to switch over or create an account. They also tend to offer higher interest rates. That means their account holders can earn more, faster. Switching banks may also save you money with little to no fees. For instance, the CapitalOne online, high-yield savings account has no fees, no minimums and a 3.60% annual percentage yield (APY). Millennials tend to be more socially conscious, which is in part reflected in their consuming habits, and banks take that seriously. If reducing your carbon footprint or impacting social justice mean a lot to you, switching banks could bring you closer to those goals while also building your financial future. When deciding whether or not to open a new bank account, millennials should consider what's personally important to them right now. This can include factors like ATM access, customer support and physical bank locations. Before making any change, millennials should also keep in mind the risk of losing any perks they already have with their current bank or account. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on Ally Bank Says This Is the Best Time To 'Graduate' From Your Starter Bank
Finextra
14-05-2025
- Business
- Finextra
An Open Letter to Incumbent Banks: By Igor Kostyuchenok
Dear European Incumbents, this an open letter to you from a founder of a FinTech startup. You've been watching the Neobanks like Revolut and N26 acquiring customers in your jurisdiction at a relatively high rate but you weren't worried since most of your customers stayed with you. You have the reputation, you're too big to fail and even you will the government will bail you out, right. We've seen this story multiple times with Monte dei Paschi di Siena, Banca Popolare di Vicenza and Veneto Banca in Italy and Hypo Real Estate Holding, IKB Deutsche Industriebank, WestLB, HSH Nordbank and Commerzbank in Germany. Other European countries have been there as well. You prefer to close your eyes and pretend that nothing is happening. So far in continental Europe Neobanks have been acquiring expats as their customers. Expats are experiencing problems with opening a bank account with your incumbent bank so they retreat to a Neobank that welcomes them with open arms. This was only the start though. More and more customers are toying with an idea to move their deposits to a Neobank. Neobanks have more to offer, more savings and investment products, more travel products, even a mobile plan. What does your incumbent bank have to offer? No new products have been introduced lately. You are trying to defend the status quo. You don't want to build new stuff - it's too expensive and too risky. You only want to do the absolute minimum to comply with Open Banking (PSD2, PSD3) and other initiative like FiDA. What you rather do is to lobby your way out of the innovation. You use the regulator to remove the competition rather than enter the battle for the customer. With growing deposits and larger investments Neobanks are finally becoming a real threat to you. The last hurdle - offering credits and mortgages - has almost fallen. Soon the Neobanks will offer them as well and then most customers will start leaving your safe harbor of technological stagnation. If you won't handle now, you will lose most of the customers. You still have time and financial resources. Start using them to prepare your bank for the future - it's almost here and you're in danger not to experience it. Yours sincerely, FinTech Founder
