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Neobanks like Chime and SoFi can offer lower fees, sleeker app designs, and tools that traditional banks rarely match. However, there are tradeoff areas to consider: deposit protection structure, customer service, and lending access, to name a few.
Which one is better for your money? That depends entirely on how you use banking day-to-day.
What Is a Neobank, Exactly?
A neobank is a financial technology, or fintech, company that offers banking services entirely through a mobile app or website—no branches, no teller window. Everything happens on your phone.
Adam H. Douglas is a journalist and writer specializing in personal finance and literature. His recent work explores money management, book reviews, veterinary medicine, and long-term financial planning. He currently resides in Prince Edward Island, Canada, with his wife of 30 years and his dogs and kitties.
