Europe’s neobanks search for elusive profit in SMEs and the US

Europe’s online-only challenger banks are still losing money, despite millions of retail clients in their home continent.

Europe’s neobanks are switching their attention to small business banking and expansion in the US, as they strive for global scale and profitability.

Business banking will soon be a bigger revenue earner for UK neobank Revolut than retail clients, which already number about 10 million, according to its head of business Vaidas Adomauskas.

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Vaidas Adomauskas,
Revolut

“We are the profit-generating side of the business,” he says, adding that Revolut will increase its number of business clients by four or five times by 2020, reaching well over a million.

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