Digital Banks Face an Uphill Climb to Make Money

Writing a guest post on FT Alphaville Victor Basta, the managing director of Magister Advisors talks bout the struggle digital banks face in making a profit; digital banks have certainly made a name for themselves and offer a better product to the consumer; rising customer acquisition costs and the tough scaling of affiliate agreements are just two of the reasons these banking startups will find it a challenge to reach profitability; the future looks like potential acquisition of digital banks for technology or merging with other fintechs to form a stronger conglomerate. Source.

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