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Thank you for your comment @Ketharaman - you raised a very important question about whether these banks operate under a sponsor bank or hold their own banking licenses: from what we can see in public sources, while some neobanks do rely on sponsor banks (such as Chime), many have secured their own licenses (such as Starling Bank, Monzo, N26), which subjects them to the same rigorous regulatory framework as traditional banks. Is there also a third group? Revolut - initially operated under an e-money license and obtained a full European banking license in December 2021 and a UK banking license in July 2024.

However, the “honeymoon period” for newly licensed entities could be seen as an informal practice, reflecting regulators’ understanding that even with extensive preparation, operationalising compliance at scale takes time. This doesn’t mean leniency for rule-breaking or some bad practice, but rather a recognition of the challenges in transitioning from startup agility to a company's regulatory robustness.

What an interesting topic. It's fascinating to see how understanding cognitive biases can not only enhance engagement but also lead to more effective sales strategies. Thank you for sharing!