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A neobank is not a traditional bank. It’s a fintech company that builds a digital interface for banking services, usually without holding a banking license of its own. Instead of becoming a bank, a neobank partners with one.
This setup runs on the Banking-as-a-Service (BaaS) model. The licensed bank handles the back-end: deposit holding, regulatory compliance, and FDIC insurance. The neobank handles the front-end: product design, app experience, customer support, and features.
If you’ve ever opened a business account with one of these platforms and thought, “Wow, that was fast”, you’ve likely used a BaaS-powered neobank. Today, there are strong contenders in this space, such as Mercury, Revolut Business, or Qonto. Each has its own strengths, and I’ll go into more detail on the best ones a bit later.
So why are these fintech banks attracting so many small businesses, especially founders and remote teams?
A few reasons stand out:
Neobanks work best for companies that value control, speed, and modern tooling, but don’t necessarily need every service a traditional bank offers. If your business runs on Slack, uses Notion, and pays international contractors through Deel or Wise, odds are a neobank will feel more in sync with how you already work.
But while the surface looks smooth, there’s more going on under the hood, which we’ll get to in the next section.
If neobanks were built from scratch for the internet, digital banks took another route. These Chase for Business, Capital One 360, or Wells Fargo Digital. All of them have apps, dashboards, and online account access, but underneath, they’re part of institutions with deep roots in traditional finance.
The key difference comes down to structure.
Neobanks are fintech companies wrapped around a partner bank. Digital banks are licensed banks that operate entirely online. That distinction matters when it comes to how your money is insured, who answers to regulators, and what kind of services you get access to.
For example, a digital bank can offer everything from basic checking to long-term business loans, credit lines, treasury services, and legacy tools like wire transfers or physical checks. These aren’t always available or even supported by most neobanks.
That said, don’t conflate “digital” with “modern.”
While many digital banks have rolled out apps and web platforms, they often sit on top of legacy systems. And those interfaces can show their age. The onboarding process may involve manual review. And some still require branch visits for certain services.
What you gain with a digital bank:
What you trade off:
A digital bank can be the right fit if you value breadth of services, prefer direct relationships with licensed banks, or need things like business credit, multi-entity support, or more complex account structures. But the user experience may come second to infrastructure, and that compromise is something to weigh carefully.
We’ve established the differences, but sometimes, it helps to see everything laid out side by side. Below is a breakdown of how neobanks and digital banks compare across the areas that matter most to business owners in 2026.
| Feature | Neobank | Digital bank |
| Licensing | Fintech company, no banking license | Fully licensed bank |
| FDIC protection | Provided via partner bank (BaaS model) | Direct coverage under the bank’s own license |
| Fees | Lower, transparent pricing; often subscription-based | Varies widely; may include maintenance, transfer, or overdraft fees |
| UX design | Mobile-first UX design, clean interface, fast updates | Functional, but may lag due to legacy systems |
| Account setup | Fully online, with fast KYC/AML compliance | May involve manual review or branch verification |
| Services | Core SME banking: cards, multi-currency accounts, FX tools | Full suite: credit lines, business loans, CDs, wires, and more |
| Innovation | Agile, API-driven; often integrates with modern finance tools | Slower to adopt new features, but usually more battle-tested |
| Customer support | Live chat, email, chatbots — digital-first support only | Hybrid: phone, branch, and digital channels |
| Target audience | Startups, freelancers, remote-first teams | Broad customer base; often long-standing clients or established firms |
| Profitability & risk | Lower ARPU, fintech-reliant, lean ops | Higher capital reserves, more regulatory oversight |
Your bank plays a central role in how your business runs. The real cost of a poor choice doesn’t show up on day one. It hits when your finance stack cracks under scale, and switching banks feels harder than replatforming your product. This is an infrastructure decision. Treat it like any platform your business relies on to move, grow, and stay compliant.
Delivery Manager in FinTech
Neobanks are safe as long as two things are true:
If either of those breaks down — say, the fintech folds or recordkeeping is incomplete — you’re not guaranteed immediate access to your funds.
In the US, FDIC insurance only applies to the partner bank, not the neobank itself. This means:
In short, the safety of your funds depends not just on regulation but on operational clarity between the fintech and its partner.
What can go wrong?
Many neobanks remain relatively young players in the banking space. And that means business banking customers face risks beyond what they might expect from a legacy institution:
This doesn’t mean neobanks are inherently unsafe. It means they’re only as safe as their architecture, partnerships, and recordkeeping practices.
What you can do to protect your business
Before you trust a neobank with your operating capital, take a few minutes to check the following:
Regulators across the US, EU, and beyond are no longer taking a hands-off approach. Several developments now affect how fintech banks operate:
In the United States:
In the European Union:
These updates mean neobanks must now operate with greater transparency and operational discipline, or face exclusion from regulated markets.
So, my advice to any business facing the choice of a neobank? Treat it like any other strategic vendor choice: ask the hard questions, read the fine print, and confirm the structure matches your risk tolerance. Because what matters most in business banking is knowing exactly who’s on the hook when things go wrong.
There’s no shortage of banking options in 2026, but that doesn’t make the decision any easier. So, how do you decide? The answer depends on how your business operates today, and where it’s headed next.
Choose a neobank if you:
Common use cases:
If your current needs are simple, and you value speed, clarity, and modern features, a neobank may be the right move.
But if you’re building toward complexity, such as multiple accounts, credit products, physical checks, or financial reporting, a digital bank may offer more of the tools you’ll eventually need.
Here are my top 5 fintech banks (aka neobanks) for businesses right now, each chosen based on strong UX, transparent structure, solid integrations, and a clear BaaS or partner‑bank model.
Built with startups in mind, Mercury offers business checking and savings accounts with no monthly fees, deep API access, and fast onboarding. They support direct integrations with QuickBooks Online, Xero, and NetSuite.
Ideal for: Early‑stage tech companies, lean teams, businesses that prioritise speed and flexibility.
Consider: US‑based and focused on USD operations, international FX/currency support is more limited than some global options.
Focused on SMEs across Europe, Qonto provides business accounts, expense cards, multi‑currency transfers, bookkeeping integrations, and real‑time dashboards. It offers a business API, and supports integrations with spreadsheets, Stripe, Slack, and more via Zapier.
Ideal for: European SMEs (mainly France, Germany, Spain, Italy) who need lean, digital‑first banking and integrated finance workflows.
Consider: Because they are still in transition toward a full banking licence, some legacy bank‑type products (credit, complex treasury) may be more limited.
Known for its multi‑currency account features: you can hold, send, or receive in many currencies, get local bank details in several regions, with competitive FX rates and modern integrations. Wise supports an open API and syncs with accounting software like Xero, QuickBooks, and FreeAgent.
Ideal for: Businesses with significant cross‑border operations, international clients/contractors, or those that manage multi‑currency payout flows.
Consider: It’s less of a full‑service bank for loan or treasury products and is primarily built for FX and cross‑border flows.
A strong global player among the top neobanks for business, Revolut Business provides multi‑currency accounts, team spending controls, virtual and physical cards, and fast account setup. It supports a wide range of integrations across accounting (Xero, FreeAgent, QuickBooks), HR (Google Workplace, BambooHR), and productivity tools (Make, Zapier, Slack).
Ideal for: Companies that need global reach, multi‑currency operations, team spending oversight, and modern UX.
Consider: Licence status varies by country; in some regions, your funds may still be held via a partner bank rather than a direct banking charter.
Monzo Business offers a mobile‑first UX, quick online account setup (often same‑day), expense cards, and bookkeeping integrations. It syncs with Xero, FreeAgent, or QuickBooks and supports bank‑feed integration for UK businesses.
Ideal for: UK‑based freelancers or small companies who prioritise UX, domestic integration with UK accounting tools, and fast digital experience.
Consider: If your business has large international flows, complex treasury needs, or operates outside the UK, a more global neobank may serve you better.
Comparison of top neobanks for business in 2026
| Neobank | Monthly/access fee | Transaction/usage fees | Integrations & highlights |
| Mercury | $0 monthly fee for basic account in the US | Few core fees for basic use; charges apply for non‑USD cards, non‑USD currency exchange, and advanced “Treasury” features | Direct API access; supported integrations with accounting apps |
| Qonto | From around €9/month (or equivalent) for basic SME plan | Example: Payment link fee 1.4% + €0.25/transaction | 2,000+ integrations listed; supports bookkeeping tools, invoice management |
| Revolut Business | Tiered plans: e.g., UK “Grow” plan £30/month; “Scale” £90/month | Example: 0.6% FX markup after allowance; international transfer fees from £5 each | Broad integrations: accounting (Xero, QuickBooks), HR & productivity tools |
| Wise Business | No monthly fee; pay‑as‑you‑go model | Sending money from ~0.33% and other currency‑specific fees | Open API, integrates with Xero, QuickBooks, FreeAgent |
| Monzo Business | Free “Lite” plan (~£0), Pro/Team from ~£9/month | Basic account setup is free; higher-tier plans add features | Integrations: Xero, FreeAgent, Sage; bank‑feeds supported |
Note: Always verify region‑specific pricing and terms, as these can vary by country or plan.
By now, you’ve probably realized there’s no “best” bank. There’s just the right one for where your business is and where it’s going. Need speed, great UX, and global tools? A neobank might be perfect. Need credit, complex accounts, or tighter compliance? A digital bank has the edge.
If you are unsure which banking model fits your business, product, or operational roadmap, Innowise can help you evaluate the options objectively. We work with companies across fintech, SaaS, and regulated industries to assess banking structures, partner models, compliance implications, and long-term scalability. The goal is not to push a specific solution, but to help you make a well-informed decision before committing your capital and processes.
A neobank is a fintech company that provides banking services entirely online, typically through a mobile app or web platform. Unlike traditional banks, most neobanks don’t hold a banking license. Instead, they partner with licensed banks for services like deposit holding, compliance, and insurance while focusing on UX, automation, and integrations.
Digital banks are licensed institutions offering full-service banking online. Neobanks are fintech platforms that deliver digital banking experiences but rely on partner banks for licensing and deposit insurance. While both are online-first, digital banks offer traditional products like loans, whereas neobanks focus on speed, automation, and user-friendly tools.
Neobanks are often better for startups needing fast setup, low fees, and international tools. They integrate easily with platforms like Xero and Stripe. Digital banks offer broader financial services like loans or credit lines, which growing businesses may need. The right choice depends on whether you need speed and simplicity versus full-service functionality.
No, most neobanks aren’t regulated as banks. They operate under fintech or e-money licenses and rely on a partner bank for regulatory compliance. That means deposit protection, KYC, and AML processes are handled by the licensed bank, not the neobank directly. Always check the partner bank’s regulatory standing and FDIC or EU coverage.
Most neobanks don’t offer traditional loans or credit lines. Their focus is on transactional banking: accounts, cards, and payments. A few provide invoice financing or credit tools via partnerships, but offerings are limited. If your business needs structured lending products, a digital bank or traditional lender may be a better fit.
Yes, many businesses use neobanks as their primary bank. Neobanks provide fast setup, team spend controls, and global payment tools. However, they may lack services like checks, credit, or in-person support. If you don’t need those features, a neobank can fully replace a legacy account, especially for lean, remote-first operations.
Neobanks don’t directly offer FDIC insurance, but your funds can be insured through their partner bank, which must be FDIC-insured. Always check who the licensed partner is and how your deposits are held. Clear disclosures should explain the insurance coverage structure. In the EU, equivalent protections apply under the Deposit Guarantee Scheme.
Risks include relying on a third-party partner bank, lack of credit access, or platform shutdowns. If the neobank fails, fund access depends on how well records are maintained by the partner. Data breaches, compliance issues, or unclear terms can also affect safety. Always verify deposit protection, service continuity, and legal structure before choosing.
Head of Mobile Department
Eugene drives our mobile vision with a sharp eye on performance, usability, and future-proof tech. He helps businesses turn big ideas into fast, intuitive apps that people actually want to use.
