Neobanks tackle SMB market opportunities and regulatory challenges

Neobanks tackle SMB market opportunities and regulatory challenges

Neobanks are gaining traction by offering fully online financial services — featuring digital onboarding, faster account openings, and competitive deposit rates — competing directly with traditional omnichannel financial institutions.

These same advantages attract smaller businesses, filling gaps left by conventional FIs. However, obstacles and risks persist.

The SMB market holds immense potential. In the U.S., over 33M small businesses operate, employing around 46% of the workforce, according to the U.S. Chamber of Commerce. The U.K. has about 5.6M smaller firms as per government statistics.

Source: https://www.pymnts.com/smbs/2025/neobanks-navigate-smb-market-potential-and-regulatory-risks/