Maybe Neobank will eventually be a break-even point – TechCrunch

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Building a consumer fintech company is expensive. And if you want to build one in a busy sector with both existing and well-funded start-ups, You look amazing Expensive.

that is Lessons learned in late 2020 By examining the business results from many Neobanks.

Neobanks is essentially the top software layer of banking infrastructure, providing consumers with digital-first, mobile-friendly, and often low-cost banking services. The impetus for rethinking retail banking is a global effort, and online banks are growing in basically every conceivable market. Individual investors are crowded with people to fund competing Neobanks because they have the potential to secure long-term revenue-generating users, or customers.

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Investors have proven that many neobanks are willing to fund growth and huge investments in products, and Unicorn’s performance has deteriorated significantly.In short, the American consumer fintech chime Disclosure of positive EBITDA — Adjusted Profitability Index — Many neobanks looking at the numbers show that they can’t pave the way for profitability at all.

It can change.

Recent results from Revolut TechCrunch covered early this morning It shows that the company was very unprofitable in 2020. But if you dig into the quarterly results, you’ll find good news. Neobank may finally mature into a cost structure.

So today, we’ll analyze Revolut’s key financial results and see what we can dig into from Starling and Monzo. Perhaps some good financial news from Revolut can be found in just one Neobank.

Revolut 2020

Our own Romain Dillet I have a wide view of Revolut’s business Here, If you need a wider lens. At this time, we are only considering its raw financial results.

Here’s a big number:

  • 57% Revenue Growth from £ 166m in 2019 to £ 261m in 2020
  • gross profit Growth in 2020 was £ 123m, an increase of 215% from 2019
  • gross profit He explained that Revolut will almost double at 49% in 2020.
  • 2020 Operating loss £ 98m to £ 122m in 2019
  • Total loss From £ 107m in 2019 to £ 168m in 2020

The point of these numbers is that while the company’s revenue growth was strong, the improvement in gross profit margin led to a surge in gross profit in 2020. Maybe Neobank will eventually be a break-even point – TechCrunch

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