Can someone explain the logic behind this excerpt? I don't understand the connection between rising inflation and interest rates and online-only banks being outcompeted.
> "Rising inflation and interest rates this year have made it harder for online-only banks, called neobanks in Australia, to compete with established lenders, making fundraising much more difficult."
The first online-only bank in Norway was founded all the way back in 2000, and has overall been very successful. (Unfortunately, in my opinion, they were bought out by the largest local bank this year.) I understand how regulations and local habits/expectations can mean that an online-only back won't work in certain countries. For example, I can't imagine it'd work very well somewhere like Germany which is very conservative when it comes to tech in finance – cash and faxed contracts still being very much a thing and so on (correct me if I'm wrong, though). However, Australia doesn't strike me as being as conservative as Germany in this sense, so I'd be interested in hearing more about why online-only banking doesn't seem to be doing well there.
> "Rising inflation and interest rates this year have made it harder for online-only banks, called neobanks in Australia, to compete with established lenders, making fundraising much more difficult."
The first online-only bank in Norway was founded all the way back in 2000, and has overall been very successful. (Unfortunately, in my opinion, they were bought out by the largest local bank this year.) I understand how regulations and local habits/expectations can mean that an online-only back won't work in certain countries. For example, I can't imagine it'd work very well somewhere like Germany which is very conservative when it comes to tech in finance – cash and faxed contracts still being very much a thing and so on (correct me if I'm wrong, though). However, Australia doesn't strike me as being as conservative as Germany in this sense, so I'd be interested in hearing more about why online-only banking doesn't seem to be doing well there.