Neobanks entering new markets will poach consumer deposits from banks

A new generation of digital-first banks is scaling internationally, pursuing full banking licenses, and targeting the primary consumer banking relationship.

The IPO pipeline reflects growing maturity.

Chime completed the largest US neobank IPO with an $864M public offering in June 2025.

PicPay followed with a Nasdaq listing in January.

Nubank secured conditional approval for a US banking license and is pursuing a full charter rather than relying on sponsor banks.

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Private market signals show the same trend.

CB Insights’ hiring momentum scores highlight which B2C neobanks are preparing for geographic expansion.

Revolut leads with a score of 100.

The company raised $2B at a $75B valuation and is preparing a major US expansion. Hiring data shows a coordinated regulatory strategy, with senior compliance and licensing roles across more than 20 jurisdictions.

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Other expansion signals:

• YouTrip (33.6) expanding across Asia-Pacific, targeting Australia

• Kuda (31.6) recruiting across multiple African markets

• Toss Bank (20.8) building international remittance and FX capabilities from South Korea

• bunq (31.1) establishing local European branches

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Some neobanks are strengthening their position within existing markets rather than expanding geographically.

• FairMoney (21.1) shifting from digital lending to a full-service pan-African bank

• N26 (25.4) investing in AI, risk management, and mortgage lending to deepen product breadth

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The structural shift is clear.

The first wave of neobanks focused on user experience and low-cost accounts.

The current wave is building full banking institutions with global distribution.

As these platforms enter new markets with complete product stacks—payments, deposits, credit, FX, and wealth—the competitive pressure on traditional bank deposits will intensify.

Insights by CB Insights