Neo Banks Versus Challenger Banks

This problem tests your understanding of how digital banking models are structured, especially the difference between a bank that operates only through technology and one that is still a regulated bank in its own right. In investment banking interviews, FIG questions like this check whether you can explain business models, licensing, distribution, and regulatory structure clearly, since those features affect funding, risk, scalability, and competitive positioning. The key reasoning is to separate the customer experience from the underlying legal and operating setup, and to understand why interviewers care about how modern banks are built and how they differ from traditional institutions.