A neo-bank is a non-bank which offers banking services to its customers. In fact, it is a financial technology firm. It can offer full-fledged services that a bank offers. A neo-bank has no banking license. However, they parther with a licensed bank. Digital lenders offer only lending services.

Internationally, Monzo and Revolut started as non-licensed firms, and tied up with banks. They thus could offer savings accounts to their customers.

Neo-banks can do or not do lending. There are some fintechs that concentrate only on lending.

Open has emerged as a small and medium enterprise focused neo-banking platform. It offers current account to SMEs in tie up with a bank. They have a dashboard with tools for small business to automate their finances. Such tools are built-in invoicing, built-in pay-roll, built-in accounting and regulatory filings.

Open lends on the basis of credit scores or conventional bank statements.

Open also collects, sends, and receives payments internationally. They have built a blockchain-based cross -border payments system.