• Yuval Giveon, o-founder and CTO at Neema


• 09.02.2026 01:15 pm
#FintechLicensing #BankingServices

Dozens of fintech companies are seeking increased banking capabilities like providing interest-bearing accounts for customer deposits and offering loans. To offer these services, money transfer companies like PayPal and Wise, electronic brokerages like Interactive Brokers and cryptocurrency companies like Crypto.com are among the fintechs pursuing U.S. banking licenses. Globally as well, fintechs including Revolut, Qonto, Mercado Pongo and my own cross-border payments platform, Neema, are taking steps to offer services traditionally reserved for banks.

So what exactly is going on here, and how will this trend shape the financial ecosystem for fintech startups, banks, businesses and consumers?

Digital Wallets Set the Stage for More

Fintech-provided banking services are the latest in a series of changes that have increasingly opened up the financial system beyond banks. Just as credit cards became a popular way to transfer money to businesses starting in the 1960s, digital wallets have become the norm for transferring money between individuals, while nonbank electronic payments are also becoming increasingly common between businesses and consumers as well as between two businesses – ultimately laying the groundwork for an expansion of banking services provided by fintechs.

Just look at the surge in the use of digital wallets like Venmo, Apple Pay and Alipay. Digital wallets dominate 83 percent of global digital spend as consumers increasingly reach for their phone rather than their credit card. The number of digital wallet users is expected to reach 6 billion worldwide by 2030, an uptick of 35 percent over five years.

Cross-border transactions are driving much of these digital payments, for both consumers and businesses. Over 60 percent of U.S. consumers use digital wallets for cross-border payments – and that cuts across income brackets. Cross-border payments are particularly critical for remittances, providing workers with the ability to reliably send money to their family in their country of origin without getting gouged by high foreign exchange rates or transaction fees. 

Businesses, too, are increasingly recognizing the value of cross-border payments that don’t require long waits, 3-5 percent fees or outdated infrastructure of the SWIFT network used by traditional banks, with B2B cross-border payments making up about $40 trillion in global spend.

Moving Beyond Payments

Now, tapping into these changing trends around payments, fintech companies are taking it a step further, moving beyond domestic and international transfers to other financial services traditionally provided by banks – many of which require additional specialized licenses. These services can include accepting deposits, providing interest-bearing accounts and offering loans.

The expansion of nontraditional banking services affects multiple components of the financial ecosystem, including consumers – especially the 1.4 billion people worldwide who are unbanked – as well as financial and other businesses.

When fintech companies have the ability to provide additional banking services, unbanked consumers benefit despite the obstacles that keep them from holding bank accounts, such as the fees and minimum balance requirements imposed by many banks and self-reported distrust of banks. In addition to sending or receiving payments, consumers can save money more effectively and access loans, ultimately increasing investment in education, housing or building a business – all aspects that boost the macroeconomic growth needed in developing countries with high rates of unbanked residents. Expanding these services through legitimate platforms also reduces reliance on the black market.  

Behind the scenes, the digital wallets used for remittances and other international payments often rely on other fintech platforms that consumers may not be aware of. Though payment transfers may feel seamless to consumers, the wallets are effectively plugged into payment transfer networks  that provide access to the financial systems of other countries – some of which can be challenging to access, such as China, Ukraine and the Philippines.

Businesses may also benefit from having another source of small business loans, as some fintechs, such as PayPal, are looking to provide commercial loans for small businesses once they receive authorization from banking authorities.

This potential to do far more than facilitate spending is driving fintechs to provide additional banking services directly to businesses and consumers. Even as this provides more competition for the banks, traditional banks will continue to be a core part of the financial system and will likely increase collaboration with fintechs that are providing adjacent services.. 

The push by fintech companies to provide traditional banking services beyond payments represents not just new business opportunities, but the next stage of democratizing the financial ecosystem. What remains to be seen is how quickly the transformation will accelerate and how banks and fintechs will work together to serve a broader public.