Neobank

Banking & Credit

A neobank is a digital-only financial technology company offering banking-like services without a traditional banking charter — usually partnered with a chartered bank that holds the deposits. Examples: Chime, Varo, Current, Aspiration. Neobanks attract users with no monthly fees, no minimum balances, early paycheck access, fee-free overdraft, and crypto integration. Limitations: most don't offer mortgages, auto loans, or full lending products; customer service is app-only; deposits are FDIC-insured through the partner bank (verify which one). Neobanks work well as supplementary checking accounts for younger users and gig workers but typically aren't full-service replacements.