Lawrence White
Professor of Economics, NYU Stern School of Business
Lawrence White is a leading economist specializing in banking and financial regulation, with extensive research on market economies.
Global Business / Economy
Is Neobanking Finally Ready to Replace Traditional Banking — or Will It Always Be a Complement That Can't Survive a Real Crisis?Neobanks are unlikely to completely replace traditional banks anytime soon. The more realistic future is a hybrid financial system in which digital-first institutions compete aggressively on convenience, fees, and user experience while traditional banks retain advantages in deposits, lending, regulatory infrastructure, and crisis resilience. The real test for neobanks is not whether they can attract customers during normal conditions—it is whether their business models, funding structures, and consumer protections remain robust when credit tightens and markets come under pressure.