Bankloch

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...

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...

  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   ...

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...

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...