Glossary

What is a neobank?

What is a neobank? A neobank is a digital-first financial technology company that offers banking-style features — such as spending, deposits, or cards — typically by partnering with a chartered bank that holds the deposits and the charter. The neobank itself is usually not a chartered bank.

Why the partner-bank structure exists

Obtaining a US bank charter is a multi-year, heavily regulated process. The partner-bank (or "banking-as-a-service") model lets a fintech launch products faster while the chartered partner holds deposits, issues cards, and provides deposit insurance for eligible accounts through that bank's FDIC membership.

Why "neobank" is not a legal category

"Neobank" is an industry label, not a charter type. Whether a company is a bank is a legal question answered by whether it holds a bank charter — not by whether its app looks like a bank. Some well-known neobanks have later obtained charters; most have not.

What to verify

For any fintech app, identify the legal company behind the app and the chartered bank (if any) that holds deposits, issues cards, and provides regulated services. The account agreement names the actual bank. FDIC insurance, when it applies, runs through that bank for eligible accounts.

How this relates to Kronos

Kronos is an iOS money app for gig workers and freelancers, published by KronosPay LLC. KronosPay LLC is a financial technology company, not a bank, lender, or FDIC-insured institution, and does not describe itself as a neobank. Where a regulated service appears in the app, the current flow names the provider responsible for it. Read the bank-status page.

Related glossary terms

Primary sources

General educational information only; not financial or legal advice.