Why Traditional Banks Are Losing the Digital Race

The Digital Divide: What Neobanks Get Right That Traditional Banks Still Miss

Raj Soni (Meniga) and Michal Panowicz (BCG) recently sat down to discuss how neobanks have reshaped the expectations of digital banking—and the gap legacy banks are still struggling to close.

Michal shared a striking personal example: he opened a Revolut account and received both a debit and credit card in under two minutes. Compare that to the clunky, slow processes at many traditional banks, and the difference couldn’t be clearer.

But speed is just the surface.

The real issue, they argue, is that traditional banks are still missing the mark on true digital transformation. Despite having vast amounts of customer data, most legacy institutions haven’t figured out how to turn that into personalized, intuitive digital experiences.

Meanwhile, neobanks—often with fewer resources—are delivering superior user experiences by focusing on execution. It’s not about being in Silicon Valley, having massive budgets, or regulatory hand-wringing. The barriers are internal: outdated governance, slow decision-making, and mismanaged tech priorities.

Raj and Michal emphasize that banks must stop retrofitting new features onto old systems. Instead, they need a top-down rethink of how digital products are built and delivered—starting with their culture and talent.

And here’s the kicker: the most digitally advanced banks today aren’t in the US or UK. Spain, Turkey, Poland, and India are leading the way, proving that innovation thrives where there’s focus and commitment, not just capital.

Key Takeaway
For legacy banks to stay relevant in a digital-first world, they’ll need more than updated software—they’ll need a cultural transformation that prioritizes execution over excuses.