Why neobanks are quietly bleeding money (and what comes next)
Original: The Slow Death of Neobank 1.0

Summary
Why most consumer neobanks failed to reach profitability despite scale.
Who This Is For
Founders
Business Analysts
Product Managers
Key Takeaways
- Neobanks need users to spend $750+ monthly just to break even on acquisition costs in year one
- Interchange revenue alone (1-3% of transactions) can't sustain the business model with high CAC and support costs
- Moving from 'growth at all costs' to profitability requires subscription models or lending products
- Paid marketing delivers poor quality leads while in-person acquisition is hard to scale consistently
Tools & Technologies
Visa card network Mastercard network KYC (Know Your Customer) systems Payment orchestration platforms Digital advertising platforms
Topics Covered
fintech neobank revenue-models unit-economics
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