This thesis studies the digital transformation of banking and the emergence of new companies, neobanks. The process and beginnings of digitalization are explained, ie which innovations and technologies have contributed to the transformation of banking and their regulation. The emergence of neobanks, ie as new companies that offer their services only exclusively online, additionally led banks to further innovation and implementation of new technology and services in their business. Neobanks provide similar services as traditional banks. Many neobanks have obtained banking licenses, which allows them to provide more services to their clients. Three examples of non-banks in Europe will explain which services they provide and how they differ. The emergence of neobanks and new fintech companies does not have to be a direct threat to classic traditional banks. Many banks and non-banks enter into partnerships that benefit both parties. Europe leads the world in the number of neobanks and this is made possible by regulations that make it easier for them to do business, which is not the case in the United States, for example.In the Croatia, digital transformation, ie meaning innovations in the banking industry, are quite slow. According to the DESI index, in terms of innovation, Croatia is at the bottom in the European Union, in 20th place. The most used neobank in Croatia is Revolut.