[debussyman]

The problem with venture-funded neobanking business model today is that growth is expensive. CACs for traditional US banks have always been high (ever gotten an offer of several hundred dollars to open an account?), and it's even higher for an upstart with no brand equity.

On top of the high CAC, the pressure for growth is strong for venture-funded businesses, leading to more spending on marketing.

While the author does list opportunities to generate revenue, in my experience the annual revenue per user is at least 10x lower than CAC, meaning you can't generate a profit for decades, even discounting fraud losses as 0.

[creer]

High perhaps but wasted for lack of creativity no? Which might be changing? When Transferwise started, it didn't need ANY cash offer to attract customers.