With the widespread adoption of the internet and technology across the world, legacy industries are finally adapting, pivoting their business model, and are ushering in a new era of consumer experience. For years, the Financial Industry and Wall Street have faced little competition; however, technology is posing a worthy threat and is making finance affordable for all.
Neobanks and financial technology companies are putting consumers first, making transactions more secure and faster, and are drastically reducing fees. Our rating methodology for Neobanks and financial technology companies that offers banking solutions evaluates the user experience, security, affordability, products offered, deposit rates, and legal posture.
- User Experience (20%): Analysts evaluate the neobanks sign-up process, account setup requirements, and the time it takes.
- Security (10%): Setting up a deposit account requires you to hand over personal information and data. Analysts on our team ensure all companies we review adhere to industry best practices, such as complying with PCI DSS for Credit Card Providers. We also make sure the website is secure, review the level of encryption employed, and evaluate how data is collected throughout the platform.
- Affordability (20%): Neobanks traditionally offer overdraft protection and low fees across the board. Analysts evaluate how the company makes money and the fees it charges customers. We read the fine print and make sure the hidden fees are clearly articulated in our product reviews.
- Products Offered (20%): Consumers deserve a wide selection of deposit accounts and banking solutions. We evaluate what products are offered, such as CDs, checking accounts, money market accounts, and saving accounts.
- Deposit Rates (20%): Analysts track historical rates across various products. We evaluate the company’s advertised rates and compare them to historical averages and its peers. In all our reviews, we allow you to compare products (side-by-side) to see how they stack up against one another.
- Legal Posture (10%): Neobanks and financial technology companies are held to the same standard as a traditional bank, credit union, or financial institution. However, it is complex how these businesses handle banking regulation. Analysts review the legal posture – such as who is serving as the bank’s sponsor and allowing them to utilize their formal banking charter – of each business and identify how the bank is legally able to offer banking products and solutions. Additionally, we review the Consumer Financial Protection Bureau Database that tracks illegal and improper banking practices.
Collecting Data and Routine Content Updates
SimpleMoneyLyfe’s product analysts and banking editorial team utilize publicly available data, expert interviews, and third-party resources to collect relevant information pertinent to the review. This includes leveraging the Better Business Bureau, Google Verified Reviews, the Consumer Financial Protection Bureau, Federal Trade Commission, U.S. Securities and Exchange Commission, and the company’s public website.
Neobanks and financial technology companies that offer banking solutions are evaluated annually. However, our content team and data scientists routinely update reviews as new features are rolled out that benefit consumers, deposit rates change, or when fees are adjusted. Rest assured, we are constantly using our resources to ensure the content is accurate, digestible, and relevant.
Neobank and Financial Technology Review Team
The editorial team charged with ensuring accurate neobank and financial technology reviews are professional writers, data junkies, researchers, and editors. The team is made up of technologists who love analyzing trends and identifying new products that will help consumers bank efficiently, securely, and responsibly. All members of the team adhere to our editorial guidelines and procedures which holds us accountable.