Neobanks were created to have a wild-west playing ground again by evading regulations.
From a Neobank, customers can win big or get scammed big.
As usual for a bank, bank always makes profit. But for Neobanks, profits are even bigger because of evading regulation.
Sam Bankman Friend is an example of a Neobank entrepreneur. He created FTX.
What is your opinion?
They might have started as such, but escaping regulations wasn't their sole purpose. They just happened to be outside of any regulatory framework, but only because regulators were just catching up.
Compared to current huge exchanges, they were relatively small, and there were way more exit scams on them.
These days crypto exchanges or "neobanks" are obligated to follow same regulations as every company that deals with people's finances. Also profits and losses from neobanks don't happen because of evading regulations. Gains and losses are huge because you can basically trade any volatile token in them. At least in DeXes.