Getting into a neo-bank is a frictionless, three-second experience. Staying in one is entirely different. In the previous article, we explored KYC—the digital bouncer that verifies your identity at the front door. But once you are inside and your shadow…
A company in Nigeria needs to pay a supplier in Mexico. Ten years ago, this would have meant dealing with local banks, waiting for a SWIFT message to hop through New York and London, losing money to hidden FX markups,…
You download a neo-bank app. To open an account, you are asked to type in your name, date of birth, and Social Security Number. Then, you are prompted to hold your phone up to your face and take a quick…
You are buying a pair of shoes online. You never type in a 16-digit credit card number. You never fill out a loan application. You simply select an option at checkout that says “Pay Later” You click once. Approved. In…
In a traditional bank, a payment card is a physical artifact tied to a pre-allocated ledger state. You apply for a card. The bank’s underwriting system reviews your credit, allocates a $5,000 credit limit on your account row, orders a…
You buy a shirt on Instagram, order a ride on Uber, subscribe to a streaming service, and pay without ever leaving the app. You do not visit a bank. You do not open a separate payment website. You do not…
In the previous article, we established that when you open a neo-bank account, your money does not actually live at the neo-bank. In many cases, it lives in a giant, pooled omnibus account (FBO) at a traditional sponsor bank, mixed…
You leave your house to run a few errands. You have no physical wallet. No cash. No credit cards. Just your phone. You buy a coffee, tap your phone against the reader, and walk out. You grab a train, tap…
You download a modern application with a minimalist interface. You pass your phone camera over your driver’s license, type in your identification details, and seconds later, you have a checking account. You are issued a routing number and an account…
