The United States is known for the incredible advancement of technology that it makes in almost every field that we can imagine of, but the United States banking sector has been left behind in this race, and the banking sector of the nation has failed to digitize itself while the European and some very developed countries all-round the globe have started using these digital banking and finance systems.
What the United States needs to learn from these nations is what we will be talking about in the excerpt. The United States saw a massive change in its banking sector after the 2008 financial crisis, and there has been no significant development since then even the finance technology has advanced ten times more than it was in 2008. In technology, the United States is still a leader, but the application of financial technology in the economic systems has failed miserably, and hence, the rise of neobanks, which is a term used to define the digital banks, has been prolonged and late in the nation. The regulatory support has been a critical obstacle in the rise of neobanks as the regulation standards of the United States are very harsh on the new fintechs. The United States has approved these on a state level, but the support from the federal level still lacks very much.
The regulation from the federal level will, for sure, change the neobank future in the United States and set a new foundation for the future of digital finance.
Tags : advancement of technology , banking sector, neobanks, digital finance,