Today we are experiencing an incredible boom in fintech companies and digitalization of banking, as well as the excitement around promising private companies.

There are already several dozen companies among neobanks at different stages of development in different countries. The boom in growth of neobanks around the world can be explained with the low base effect and the boost in the form of lockdowns due to the pandemic last year. The banking market is undergoing tremendous changes: even traditional banks are beginning to reduce commissions, develop their apps, add new products at competitive prices. When the market is saturated, the struggle for the client will intensify, and if neobanks generally have an advantage over traditional banks that they provide almost all services for free or for very low commissions, then in the competition between neobanks everything is much more complicated, because they have already lowered commissions to a minimum. New leaders among neobanks will be able to afford to force the sale of unprofitable businesses to a larger player, as a result of which large players will become even larger.

In the market, before choosing a company for investment, there are often examples that can be largely guided by. And it is more justified to lay forecasts for entering the stock exchange with comparable parameters than to consider the company is the best, and that it is this company that should go way many times faster than other successful competitors.

The largest representatives of the neobank industry, with an estimate of $30 billion or more and revenue of $500-1000 million per year, have not yet become public and are only planning to exit. In comparison with them, such promising companies as Varo, N26, Upgrade and others may need about 3-4 more years to reach the conditions for listing on the stock exchange. Comparing smaller players to leading companies, it is logical to assume that companies must first achieve maturity and attractive financial performance before going public.