FCA tells neobanks not to liken themselves to banks
The UK’s Financial Conduct Authority (FCA) warned the chief executives of neobanks in a Tuesday letter to avoid comparing their upstart companies with licensed banks, voicing concern that consumers may think the challengers’ offerings have the same risk profiles as those from established players. Within six weeks, fintechs that operate under an e-money license—such as Revolut—must notify customers about how protections they offer are different from licensed banks’, such as a lack of Financial Services Compensation Scheme deposit protection.
