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The Rise of Challenger Banks – Are the Apps Taking Over?

The banking sector is experiencing a major shift globally, as Challenger Banks are becoming increasingly formidable competitors to traditional banks and have begun to capture significant market share. Furthermore, the lines between banks and other consumer financial services providers are blurring, with several alternative lenders and robo-advisors beginning to offer banking products to their customers. E-commerce / internet giants are also jumping into the fray with Google and Amazon, among others, beginning to offer banking products.

Investor appetite towards funding Challenger Banks remains strong with several Challenger Banks raising large funding rounds this year, such as FT Partners’ client MoneyLion’s $100 million Series C Financing, and Chime’s recent $500 million Series E financing that valued the Company at nearly $6 billion.

In response to the emergence of Challenger Banks, a number of incumbent banks have launched their own FinTech brands, and traditional financial institutions will likely turn to FinTech solution providers in order to defend their turfs.

Key discussion topics of this report include:

  • An overview of trends in the Challenger Banking space as well as the broader banking ecosystem
  • A detailed landscape of Challenger Banks globally
  • Proprietary list of financing and M&A transactions in the space
  • Interviews with 16 Challenger Bank executives
  • Detailed profiles of 41 global Challenger Banks
Sarah Corley
Sarah is Deputy Director at DFI and is responsible for developing the DFS profession and providing opportunities for capacity building outside of our online course provision. She has over 20 years of experience within the learning and capacity development within the development and health sector, and is passionate about being a catalyst for change.

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