They’re rewriting the script. Digital banks, once chasing growth at any cost, seem to be changing their tune. Suddenly, profit matters as much as novelty, and that shift is rattling old assumptions. The idea that these online upstarts might never run in the black is starting to look pretty shaky.
The numbers don’t lie. Revolut, Europe’s largest digital bank, pulled off a neat trick in 2023: $545 million (about R5.7 billion) in profits. Revenue soared 95% to hit $2.2 billion. Then came a deluge of fresh customers—over 10 million signing up in 2024, lifting total global users to an impressive 50 million. Those are big moves for a business once considered a niche player catering mostly to younger customers dabbling in mobile-first finance apps.
A Shift in Global Conversations
This isn’t just a European tale. African fintech founders are voicing similar themes, reflecting local priorities that shape how digital banking evolves.
Recently, I listened to Nik Storonsky, co-founder and CEO of Revolut, chatting with Harry Stebbings on the 20VC podcast. He spoke numbers, sure, but what resonated was the philosophy behind the metrics. It’s about shedding an old skin—where everything hinged on sheer scale—and stepping into a more balanced state where revenue growth and profits share the spotlight. The story feels global, not boxed into one place.
In Africa, the conversation echoes. On the African Tech Roundup, speaking with Chijioke Dozie, co-founder and CEO of Nigeria’s Carbon, I heard a subtle distinction that might sound simple but carries weight. He believes digital banks differ from neobanks: the former hold full banking licenses, suggesting they’re “grown ups” compared to younger, license-light entrants.
This matters because it breaks the myth that you can just copy a successful digital banking model and paste it elsewhere. Just ask British neobank Monzo, which once assumed the US market would be straightforward. Instead, the American venture turned tricky, reminding everyone that local context counts.
Dozie also explained why Tyme Bank’s successful approach in South Africa doesn’t fit in Nigeria. Physical retail structures, distribution networks, and cultural expectations differ starkly. You can’t just replicate a blueprint without tweaks or risk falling flat.
Borrowing Inspiration from Unlikely Places
You might think digital banking mentors come from familiar markets, but think again.
T-Bank, formerly known as Tinkoff Bank, isn’t your classic Western role model. Yet it’s cropping up in conversations from London to Lagos. Storonsky and Dozie both cited T-Bank as an inspiration, indicating an admiration that crosses borders.
It’s not that T-Bank is a household name everywhere. But its knack for blending fresh ideas with commercial common sense has turned heads in unexpected corners.
In a world where venture capital once poured into digital finance, banks like T-Bank have shown that flashy ideas must stand on solid ground. They’ve proven you can marry innovation with stable revenue streams, a lesson increasingly relevant as easy funding dries up.
• Market reports indicate T-Bank consistently delivered strong returns while expanding its product suite, making it a model others want to study.
This shift isn’t just about hype. It’s about enduring presence in markets that rarely forgive financial flops.
Back to Basics: Profitability as a North Star
We’re seeing a recalibration of how digital banks pitch their value.
Revolut’s breakthrough into profitability changes the narrative that digital banking must burn cash forever.
Consider Tyme Bank, which hit profitability in December 2023, and Carbon, turning a profit in 2018 and 2019 on a modest $12 million in equity. These examples throw shade on the hyper-growth-at-any-cost model. They suggest that a more measured approach—one that seeks a sustainable financial core—could define the next era of digital finance.
This focus on bottom lines might surprise old-school critics who wrote off digital banks as hype. But look around: profits are becoming badges of honor, not just for legacy names but for young challengers as well.
Local Reality, Global Influence
It’s tempting to assume digital banking would follow a neat, uniform pattern.
Instead, these models adapt and shape-shift depending on where they plant their flags.
A brief table helps clarify how different markets force variations in approach. Let’s map three digital banks—Revolut (Europe), Tyme Bank (South Africa), and Carbon (Nigeria)—along a few key dimensions. Check out how these distinctions highlight why one-size-fits-all templates rarely work:
| Bank | Market Focus | License Status | Profit Achieved | Customer Approach |
|---|---|---|---|---|
| Revolut | Europe | Full Bank (UK) | Yes (2023) | Expanding product range |
| Tyme Bank | South Africa | Full Bank | Yes (Dec 2023) | Leveraging local distribution |
| Carbon | Nigeria | Full Bank | Yes (2018, 2019) | Navigating fragmented infrastructure |
These differences tell stories of adaptation. Revolut thrives in a relatively well-structured European setting, Tyme Bank succeeds with a South African model that relies on retail tie-ups, and Carbon finds ways around Nigeria’s tricky infrastructure.
That’s why these lessons matter: digital banking is global yet anchored by local anchors. Different markets, different solutions, different results.
One sentence here, just to shake things up.
Funding Realities and Future Conversations
Venture capital once rained on fintech after every new user milestone, but that era might be cooling. Investors now ask: where’s the profit, how stable are your revenues, can you last without constant fundraising?
In other words, growing up means paying your own bills.
Revolut’s 50 million global users are a testament to scale, but scale that doesn’t break the bank. Tyme Bank’s pivot to profitability showcases that local partnerships and trust-building matter as much as digital prowess. Carbon’s story proves you can thrive with limited equity if you focus on what really counts—offering reliable services that people genuinely use.
