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In Nigeria, there are dozens of neobanks. Some of them include Kuda, Opay, World Remit, VBank, TransferGo, etc. Neobank is described as a direct bank that operates exclusively online without traditional physical branch networks. The term “challenger bank” is also used to identify this type of bank as well to several fintech banking startups that emerged in the wake of the 2007–2009 financial crisis. Experts have advised that neobanks should find their niche to improve their profitability. In this article, I discuss extensively the series of niches neobanks and digital banks as well as FinTechs can identify to improve their profitability.
A Neobank For Specific Professions
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Again, neobanks can act as specific insurance providers such as providing insurance services against medical failures for doctors and as well provide car insurance for taxi drivers or bike insurance for bike couriers. In addition, features like automatic quarterly tax payments can be very easy for professionals.
Neobanks Focused On The Elderly
Banking For Gen-Zs
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To gain more audience in this niche, neobanks will have to collaborate with influencers, financial and social media education services (like e.g. saving goals learning minors to save from young age, but also educating minors to stay safe on social media), special control tools for parents (e.g. spending limits or control on MCC codes for spending, but also simple supervision of all financial actions done by the minor), access to specific events (e.g. concert ticket sale).
Banking For Migrants/Immigrants
Concluding RemarksThe digital banking industry is very vast with so many fields that need attendance, especially in meeting the specific needs of specific communities. Therefore, founders must spot these communities and pitch their tents and offer real value rather than just running a business that serves everybody in bits. Featured Image Source: YourStory
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