At the Finance Magnates London Summit 2025, a panel titled“How Neo Banks Go Wealth” explored the role of digital challengers in wealthmanagement. The discussion highlighted how Europe’s £30 trillion wealth marketis shifting from traditional advice to digital platforms, creatingopportunities for neo banks to expand their presence in savings, investment,and asset management.The session was moderated by Andy Russell, CEO of ProjectArnaud at 11:FS, and featured Mushegh Tovmasyan, Chairman of Zenus Bank; StefanLucas, Founding CEO of FinTech Armenia; and Rachel Przybylski, Chief ProductOfficer at SIGMA AI. The panel examined how neo banks, fintech hubs, andAI-driven platforms are reshaping the industry.Market OpportunityThe moderator framed the opportunity in stark terms:Europe’s wealth market is expanding at roughly five percent annually, while thegap widens between digitally engaged younger investors and high-net-worthclients relying on traditional advice. At the same time, a significantintergenerational transfer of assets is underway, prompting the industry torethink how wealth is delivered. Neo banks view this transition as a naturalextension of their existing payments business.Neo Banks as Infrastructure Front-EndsTovmasyan described neo banks as the “front end of financialservices,” built on infrastructure that quietly manages payments, custody, andinvestment behind the scenes. “Stablecoins and crypto are a big trend,especially under the new US administration,” he said, pointing to fastercross-border settlement, decentralised finance, and new yield models as driversof change. Zenus, he added, now powers money movement for digital brands thatwant to add wealth without building full banking stacks themselves.Strategic Expansion and GrowthFrom a market strategy perspective, Lucas said the push intowealth is driven by both regulatory and strategic considerations, with firmsincreasingly focused on profit growth and the accumulation of assets undermanagement. He pointed to forecasts that place the neo banking market at abouttwo trillion dollars by the end of the decade, while wealth managementrepresents a three-trillion-dollar opportunity with far larger projected AUMoverall. By contrast, he said: “a CFD, spread-betting or forex broker—or a neobank operating only in payments across a handful of countries—remainsstructurally limited in its growth.” Expanding into wealth, he added, reflectsthe broader convergence now under way, with “traditional banks going digital,digital banks moving into traditional markets,” and crypto wallets increasinglyintersecting with both.Client Expectations and AIPrzybylski focused on client behaviour rather than balancesheets. Younger investors, she said, expect personalised, data-driven, and fastinvestment tools. “They want to make their own investment decisions and wantthe data to support that,” she told the audience. Firms with AI-nativeplatforms, she added, will hold a structural advantage as competitionaccelerates.What is a “neobank”?Good question. 😁It’s basically a fintech company that only offers services online. (No physical locations)Example: Revolut (and Chime, Mercury, SoFi)Revolut has a banking license for the EU and the UK, but the US will be a critical market for for… pic.twitter.com/mcBIHfVyIV— Noel Moldvai (@noelregrets) December 5, 2025Super-App CompetitionThe panel agreed that the industry is entering whatTovmasyan called a “super-app arms race,” as payments firms add investments,crypto platforms seek banking licences, and brokers move into payments. Thestrategic value, he argued, is shifting away from proprietary technology towardaudience access and speed to market.Yet the fragmentation of today’s wealth landscape may notlast. Russell warned that while entry-level investing has already become anadd-on feature across apps, deeper disruption is likely to strike the privatebanking middle, where efficiency and consolidation pressures are rising.Regulatory LandscapeRegulation remains a moving target. Przybylski said mostexisting frameworks already cover much of today’s activity, but governancearound artificial intelligence will be critical. Lucas pointed to a resurgenceof regulatory sandboxes, including stablecoin trials under the UK’s FinancialConduct Authority and controlled fintech experimentation in Armenia.Crypto and Generational ChangeThe sharpest generational divide surfaced during questionson crypto and custody. Tovmasyan said some younger wealthy clients now rejectpaper contracts altogether. “They just connect a wallet and trade,” he said,adding that regulators are increasingly focused on controlling fiat on-rampsand off-ramps through KYC and AML. “Once funds are on-chain, control becomesmuch harder. The change is already here.”Long-Term OutlookDespite the risks, the panel’s long-term outlook was broadlyoptimistic. Neo banks, Lucas argued, already have trust, data, and scale amongmiddle-aged users. As products mature and older assets gradually change hands,wealth could become their most significant frontier yet.This article was written by Tareq Sikder at www.financemagnates.com.