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From Startups to Banking Giants: Are Neobanks the New Incumbents?

Neobanks — also known as digital-only banks or challenger banks — are at the forefront of financial innovation. By leveraging cutting-edge technology, they offer seamless, customer-centric services without the overhead of traditional banking infrastructure. Gaining traction in the early 2010s, particularly in Europe and the U.S., neobanks have rapidly expanded worldwide. By addressing inefficiencies in traditional banking, they introduced user-friendly platforms, lower fees, and more flexible financial solutions. Today, names like Revolut, Monzo, N26, Nubank and Chime dominate fintech discussions. With multi-billion-euro valuations and successful market expansions, these digital challengers have reshaped the banking ecosystem — forcing incumbent banks to accelerate digital transformation and prioritize customer experience. Despite their success, many neobanks still face significant hurdles in achieving long-term profitability and market dominance. Their combined revenue and assets unde...
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The Freemium Model in SaaS: A Smart Acquisition Play or a Costly Gamble?

In the world of SaaS, the freemium model has become a widespread customer acquisition strategy. The premise is simple: offer a free version of your software to attract users and then convert a portion of them into paying customers. The classic tagline — "Start for free, upgrade as you grow" — perfectly encapsulates this approach. But while the model sounds straightforward, the reality is more complex. Freemium is not just a pricing strategy; it is a calculated bet with significant costs. Companies must carefully balance acquisition, conversion, and infrastructure expenses to make freemium a sustainable growth engine rather than a financial sinkhole. Freemium offerings come in different flavors, each designed to balance value for the user with a strong incentive to upgrade: Unlimited free usage with restricted features The core product is free, but premium features (often essential for corporate users) require payment. This flavor is common in open-source solutions, where ente...
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Loyalty in Retail Banking: More Than Just Sticking Around

  In retail banking, loyalty is often misunderstood. A truly loyal customer is not just someone who has stayed with a bank for a long time — it is someone who actively engages with the bank’s products and services and has a strong emotional connection to the brand. Such customers do not just remain with the bank; they   advocate   for it. They willingly recommend it to friends and family, contributing to a high   Net Promoter Score (NPS) . They are true brand ambassadors—not because of incentives, but because they genuinely believe in the brand’s value. Loyal customers are also more   resilient to competition . Unlike transactional customers who can be swayed by welcome bonuses or minor pricing advantages, truly loyal customers stay even when competitors offer slightly better terms. Their connection is built on   trust and experience   rather than short-term financial perks. However, this level of loyalty must be earned through a combination of   ...
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Fighting Financial Crime Together: The Role of Data Sharing

Financial crime continues to evolve at an alarming pace. Despite significant investments in advanced detection techniques, only a small fraction of these crimes is detected and stopped. Research highlights that as little as   1% of illicit financial flows are intercepted , leaving a staggering 99% to slip through the cracks. This is a strong reminder that while progress has been made, current efforts are insufficient to keep pace with the ingenuity of financial criminals. The rise of   Authorized Push Payment (APP) fraud exemplifies this challenge. Even with advancements in multi-factor and risk-based authentication, AI-based fraud detection systems, and "Verification of Payee" protocols, APP fraud persists by exploiting human trust and technological vulnerabilities. To combat this effectively, the financial ecosystem must embrace a   paradigm shift   — emphasizing   collaboration among financial institutions   and partnerships with   Big Tech and soci...
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VAT: A Simple Tax That’s Anything But Simple

Taxes are a part of life, whether we like it or not. One of the most known yet often overlooked taxes is   Value-Added Tax (VAT) . In Belgium, the standard VAT rate is   21% , embedded in the price of almost everything we buy. For consumers, VAT is straightforward—you pay it and move on. But for businesses, VAT is a complex system of charging, reclaiming, and navigating a maze of exceptions. As a Product Manager, I often build business cases that require a clear understanding of what customers will ultimately pay, including their cost structure (cfr. my blog ' A good business plan is the foundation of every new idea ' -   https://bankloch.blogspot.com/2021/04/a-good-business-plan-is-foundation-of.html ). While I’m not a tax specialist, I frequently need to understand VAT basics to make informed decisions. At first glance, VAT seems straightforward: businesses charge VAT on sales and reclaim VAT on purchases, ensuring tax is paid only on the value added. For example, if yo...
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The Generative AI Revolution: A Profound Transformation in Financial Services

Generative AI (GenAI) remains one of the most transformative forces in technology today, capturing imaginations and redefining industries with unparalleled speed. While traditional AI has excelled in analysis and automation, GenAI is a newer force, capable of creating sophisticated content that mirrors human creativity. This innovative technology spans multiple modalities—text, audio, video, and beyond—enabling it to summarize extensive documents, craft opinion pieces, generate software code, design visuals, compose music, and even define data quality rules. The applications are virtually limitless. The rapid evolution of GenAI is driven by continuous advancements in models. Weekly, new models emerge, surpassing their predecessors and intensifying competition among key players. Key Large Language Models (LLMs) : xAI Grok : Designed for real-time social media interaction. Anthropic Claude : Prioritizes safety and ethical behavior. OpenAI ChatGPT : A versatile powerhouse for diverse appl...
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