Awareness growing for neobanks

Consumer awareness of neobanks is growing with a number of these challenger banks leading in terms of brand recognition.
According to RFi Group research, while less than 5 per cent of consumers have a financial relationship with a neobank, 1 in 4 consumers are now aware of a neobank.
This proportion is significantly higher among those aged under 35.
Furthermore, the research found that 14 per cent of consumers said that they would be comfortable using a neobank.
A further 43 per cent indicated that they would be comfortable using a neobank in the future.
Again, this proportion is higher among people under the age of 35.
Up currently leads in consumer awareness followed closely by Xinja.
The data shows that consumers would be most likely to consider a neobank for a transaction or savings account
Furthermore, 1 in 2 consumers intending to take out a transaction or savings account in the next 12 months can see themselves taking out these products with a neobank
“Over the last few months we have seen above-the-line activity from the neobanks and this has moved the needle in terms of awareness,” RFi Group managing director of consulting Alex Boorman said.
Neobank 86 400 has already launched a mortgage product in addition to its savings product and embarked on advertising branded posted on buses.
Similarly, Xinja rolled out both an advertising campaign as well as savings account and while it has put a pause on new inflows, it is expected to open up for business.
As for Up, the digital bank has garnered more than a one-year track record in the market, which is delivering for its partner bank Bendigo