A neobank is a type of direct bank that operates exclusively using online banking without traditional physical branch networks that challenge traditional banks.  The term "challenger bank" is used in the UK to refer to a number of fintech banking startups that emerged in the wake of the 2007–2009 financial crisis. Their services may be accessed by clients through their respective computers or mobile devices. 

The range of services provided by neobanks is not as broad as that of their traditional counterparts. Unlike incumbent banks, a large portion of the income of neobanks is mainly made up of transaction fees received when customers pay with their debit card. 

Neobanks are fintech companies that offer both standard banking services entirely online and non-traditional ones (peer-to-peer payments, financial advisory robots, cryptocurrency transactions, and crowdfunding platforms to raise funds for certain financial projects or their intangible equivalents that are directly related to the project).

History
The term neobank has been in use since at least 2016 to describe fintech-based financial providers that were challenging traditional banks.  There were two main types of company that provided services digitally: companies that applied for their own banking license and companies in a relationship with a traditional bank to provide those financial services. The former were called challenger banks and the latter were called neobanks.

Notable neobanks 
According to Dealroom.co the most notable neobanks in Europe are the below: 

 Monzo
 Chime
 N26
 Revolut
 Starling Bank
 OakNorth Bank
 Zopa
 Atom Bank
 Qonto
 Wise
 Adyen
 Bunq
 Viva Wallet
 Monese
 Tandem
 Nubank

See also 

 Neobanks in Europe

References

Banking terms