German neobank Penta partners with a point-of-sale provider to reach nondigital businesses - Business Insider

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Targeting SMBs via partnerships is a cost-effective strategy Penta and other neobanks can take to help their elusive profitability plays:

SMB customers since launching in 2017, 68% of which switched from an existing bank provider, for example.

Consumer- and SMB-focused neobanks globally are adding valuable features that drive up expenses — and partnerships may be a more cost-effective way to lure clients. Many neobanks offer attractive features, like overdraft cushions, which help them draw in millions of users but also drive up expenses and make profitability further out of reach.

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