Published article available here.
With rising inflation rates, supply chain issues, and record labor shortages, small businesses in 2022 will be hyper-sensitive to their lifeblood: cash. More specifically, how they protect their money.
Big banks have incentivized themselves to extract wealth from their customers, with overdraft fees being a major source of revenue that generates billions of dollars annually. Additionally, the typical bank charges a $1 to $30 fee for initiating and receiving ACH and Wire transfers or using an out-of-network ATM machine. Until recently, SMBs have widely accepted these fees as a ‘cost of doing business,’ but, over time, they represent tens of thousands in lost dollars.
Enter the Neobank. These FinTechs offer better perks and better user experiences than traditional institutions; they’re also often entirely free for small businesses to join and leverage for daily activities.
With more banking options than ever, small businesses will be faced with a difficult decision: stick with the trusted, old-guard or make the jump to something new. It’s this dilemma that will likely see Neobanks continuing their meteoric rise in the financial industry.