Neobanks, which promise digital banking with low fees and a better user experience, are struggling to achieve profitability. Currently, less than 5% of these banks are in the black. Their revenue primarily comes from interchange fees, which depend on card usage. For instance, Chime, a prominent U.S. neobank, derives about 80% of its revenue from these fees. Regulatory caps in various regions limit the income from these transactions, leaving neobanks vulnerable. If consumer spending drops—like in an economic downturn—revenues can fall sharply. Furthermore, neobanks lack a solid interest income model. Traditional banks earn a significant portion of their revenue from loans, but most neobanks, even those with banking licenses, have not built this capability. Crypto neobanks face even greater challenges, as they can't lend deposits directly. Instead, they might pass funds through decentralized finance (DeFi) platforms, exposing themselves to risks without gaining much in return. As a result, many neobanks are essentially just holding deposits without a way to monetize them. To survive, crypto neobanks need to rethink their strategies. They should focus on embedding DeFi into their offerings rather than imitating traditional neobanks. For example, they can generate revenue through trading activities and by offering structured yield products. Successful models like Alipay’s wealth product suite illustrate how neobanks can simplify investment options for users. The article suggests that the future lies not in creating another neobank but in providing the underlying infrastructure that enhances existing banks' profitability while integrating crypto features.