GLOSSARY

Neobank

Neobank — A neobank is a digital-first banking provider that offers checking, savings, debit cards, and other banking services through a mobile app or website, typically without operating physical branches.

Last updated: 2026-04-26

In depth

Most neobanks are non-bank fintechs that operate via a partner-bank arrangement (the partner bank is the actual FDIC-insured institution). A few — Varo is the canonical example — hold their own bank charter.

The category exploded after the 2010s as Plaid + Stripe + AWS made the cost of building a banking front-end collapse. Today the leading US neobanks are Chime, Cash App, Varo, Current, SoFi, and Kronos.

How Kronos uses neobank

Kronos is a US neobank for gig workers. Banking is operated via partner banks under Bridge.xyz; Kronos itself is registered as KronosPay LLC (Delaware, DUNS 144991867). Distinguishing feature vs Chime / Cash App / Varo: built-in pay advance, 2.5% APY savings, and non-custodial crypto.

Frequently asked

Is a neobank a real bank?

Most are not. They are fintechs that hold customer funds at FDIC-insured partner banks.

Are neobanks safe?

Deposits are protected by FDIC pass-through up to standard limits. Fintech failure (vs bank failure) is a separate risk; choose providers with clean recordkeeping at the partner bank.

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