Why Neobanks Are Buying Their Own Core Banking Software

Episode 35 explores a surprising shift in fintech: neobanks like Monzo and Chime are moving away from third-party core banking providers and building or acquiring their own infrastructure. Lucas and Luna break down the economics behind this strategy, focusing on Monzo's 2024 acquisition of a core banking platform for $50 million and how that decision has changed its unit economics by 15 basis points on deposits. They discuss why scale triggers this move, the trade-off between speed and control, and what it means for the next generation of digital banks. If you're building or investing in fintech, this episode gives you a concrete framework for understanding when vertical integration makes sense for a digital lender. #Fintech #Neobanks #CoreBanking #Monzo #Chime #BankingInfrastructure #VerticalIntegration #UnitEconomics #FintechStrategy #DigitalBanking #Payments #Business #Technology #FexingoBusiness #BusinessPodcast #FintechConversations #BankingSoftware #Episode35 Keep every episode free: buymeacoffee.com/fexingo