Why only 5% of neobanks are profitable

Hi product people!

I am working on online banking app. Recently these rumors came to the ears of my stakeholders - that absolute majority of digital banks are failing.

I researched this topic a little. And my opinion is that despite neobanks (=online startups), the digitalisation is still must for every bank to survive on the market.

Does anyone works in virtual banking? How do you deal will sustainable profit pitfalls? How do you compete with traditional banks?