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challenger banks
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Digital Bank Chime Will Quadruple Its Revenue In 2019, Reeling In Direct Deposits

via Forbes 

A growing throng of startups are betting you’d like to do your banking on your smartphone. San Francisco-based Chime, which offers a debit card with no monthly or overdraft fees, has seen its revenue explode over the past year. In 2019, it will reach nearly $200 million, a fourfold increase over 2018, according to a person familiar with the matter. Now the company plans to expand into other products like credit cards and investment services in its quest to become a full-service digital bank.  (more…)

Banks, Mobile-first banks

November 19, 2019

How To Succeed As A Challenger Bank

via Forbes 

OBSERVATIONS FROM THE FINTECH SNARK TANK

Challenger banks, neobanks –or whatever you want to call these fintech startups–face a number of challenges themselves:

  • Consumers don’t want a bank just because it doesn’t have branches.
  • The digital user experience at banks–especially the mega-banks–isn’t as bad as many challenger banks claim.
  • Even if a challenger bank’s user experience was superior, consumers don’t simply want a better experience–they want better products and services.
  • Many challenger banks have yet to demonstrate sustainable revenue generation.

(more…)

Banks, Mobile-first banks

November 19, 2019

202

Cato Banking opens waitlist for “financial health” account ahead of UK launch

via AltFi

Automatic bill payments, saving pots, and rewards and discounts at 80 retailers are what make Cato unique. (more…)

Banks, Global trends

November 11, 2019

283

Tandem starts global expansion with Hong Kong launch

via AltFi

Digital challenger bank Tandem is expanding to Hong Kong as it begins an international expansion strategy.

The firm launched in the UK in 2016 and then swiftly, and somewhat unexpectedly, bought Harrods bank. 

Now it says it offers a full-service digital bank, offering a suite of financial products in the UK, including savings accounts, mortgages, credit cards and loans but has kept quiet on plans to launch in other geographies unlike other digital banks such as Revolut and Monzo. (more…)

Banks, Hong Kong, InspirAsia, Mobile-first banks

November 8, 2019

289

Spanish Neobank Bnext Surpasses £2.6 Million Through Crowdcube Funding Round

via Crowdfund Insider 

Bnext, a Spain-based mobile-first neobank, has successfully secured more than £2.6 million through its equity crowdfunding campaign on Crowdcube. The funding round, which originally sought to raise a minimum of £1 million, was launched just weeks after the digital banking startup raised $25 million through its Series A funding round.  (more…)

Banks, Mobile-first banks

November 8, 2019

224

Revolut named UK’s fastest-growing technology company

via AltFi

Digital banking app Revolut has been named the UK’s fastest-growing tech company, with an average three-year growth rate of 48,477%.

The figures were published today in Deloitte’s 2019 UK Technology Fast 50 ranking, which calculates the fastest-growing tech companies every year.

Revolut was closely followed by OakNorth (37,449%) and Dividebuy (23,878%) in second and third place respectively. (more…)

Analytics, Banks, Global trends, Mobile-first banks

November 8, 2019

278

Queensland neobank preps 2020 launch

via Finextra 

A new Australian fintech, DayTek Capital, is due to launch “Infinity” in the first half of 2020 with a vision to becoming the first “product-disruptive” bank in Australia.

Initially starting with a prepaid card, the business is already working towards its Restricted Authorised Deposit-Taking Institution Licence, with an aim for it to be completed later that year.

Infinity has already generated great interest in Australia, with the federal government offering assistance in support of the venture. Trade & Investment Queensland, the Queensland Government’s dedicated global business promotion agency, is also supporting Infinity and its potential to create skilled jobs in Queensland.

(more…)

Banks, Global trends, InspirAsia

November 7, 2019

180

LA is fast becoming a fintech hub as HMBradley launches another West Coast challenger bank

via TechCrunch

US challenger bank is planning to launch its product next year and reward people for positive financial behaviour. The company has set up variable annual percentage yields for accounts based on the rate its customers save. The firm will provide customers with a digital bank account that combines both checking and saving features, and will also offer one-click free credit scoring and will have a network of 55,000 no-fee ATMs .  (more…)

Banks

November 6, 2019

308

Monzo surpasses 50% of UK challenger banking market share

via AltFi

German digital bank N26 is currently leading the European challengers in the US digital banking landgrab, taking nearly 50,000 downloads for the month of September, according to figures from Apptopia.

Revolut came in second place with over 20,000 downloads, and Monzo brought up the rear with just 6,400 downloads.

All are playing catch-up with local digital banking challenger Current and market leader Chime with 109,000 and 740,000 downloads respectively. (more…)

Analytics, Banks, Global trends

November 1, 2019

247

Neobank Rebellion becomes first fintech to offer Spanish IBANs with banking licence

via FinTech Futures

Spanish neobank Rebellion has become the first challenger in the country to gain a banking licence and offer International Bank Account Numbers (IBANs), reports La Vanguardia. (more…)

Banks, Global trends, Mobile-first banks

October 31, 2019

223

A new-wave of challenger banks is taking on Monzo and Starling

via Wired 

Monzo, Starling and Revolut have locked down the challenger banking market, but smaller rivals are finding a foothold by offering niche, specialised services, from business accounts to fixed savers

(more…)

Analytics, Banks, Mobile-first banks

October 30, 2019

303

Starling Bank launches two-in-one Euro debit card

via AltFi

Dual currency card feature pits Starling against Revolut and WeSwap. (more…)

Banks, Mobile-first banks

October 30, 2019

257

Norwegian challenger Bulder Bank launched by Sparebanken Vest

via FinTech Futures 

There’s a new challenger brand in Norway as mortgage focused Bulder Bank opens its doors in the Scandinavian country. (more…)

Banks, Mobile-first banks

October 30, 2019

319

French Home Finance and Savings Firm 570easi to Launch Challenger Bank, SOeasi

via Crowdfund Insider

570easi, a French home finance and savings solutions company, has introduced its own challenger bank, called SOeasi, in order to establish the world’s first Islamic ethics-focused neobank. (more…)

Banks, Mobile-first banks

October 29, 2019

352

Starling Bank raises additional £30M as it nears 1 millionth account holder

via TechCrunch

Starling Bank, the U.K.-based challenger bank founded by banking veteran Anne Boden, has raised an additional £30 million in funding.

In what was likely already agreed follow-on funding, perhaps contingent on milestones being met, previous backer Merian Chrysalis led the round with an investment of £20 million. JTC, another of Starling’s existing investors, also participated, adding a further £10 million.

Starling says the new funding will support increased investment in its consumer and SME bank accounts, as well as its B2B banking services. The capital will also be used to accelerate expansion into Europe. (more…)

Banks, Deals, Mobile-first banks, SME

October 23, 2019

300

Digital Bank Service Cogni Raises $5.4 Million, Plans Launch for Q4 2019

via Crowdfund Insider 

Cogni, a digital challenger bank, has raised $5.4 million in a seed round, according to a note from the company. Cogni said it will launch its service in Q4 of 2019.

Cogni last raised $1.7 million in funding in late 2018 in an earlier “seed” round.  At that time, Cogni predicted an early 2019 launch. (more…)

Banks, Deals, Mobile-first banks

October 23, 2019

496

Insha launches digital Islamic challenger bank in Germany

via AltFi

A new German challenger bank has launched with the aim of capturing Europe’s Muslim community left underserved by interest-based digital banks like N26.

Insha, based in Berlin, instead charges fees for ATM withdrawals and certain money transfers, which enables its core service to be free.

The startup is actually a digital offshoot of Albaraka Türk Participation Bank based in Istanbul and was originally developed for the Turkish market.

Insha also has several unique features aimed at benefiting its Muslim target market, including a Zakat calculator to help with the religion’s practice of alms-giving, a nearest Mosque tracker, a Qibla finder to help with worship, and a daily prayer schedule. (more…)

Banks, Fintech news, Mobile-first banks

October 22, 2019

291

Mastercard and Visa battle over Revolut deals

via FinTech Futures 

UK challenger Revolut will be launching its US card with Mastercard by the end of this year. However, the fintech will also be primarily issuing Visa-branded cards in its global expansion.

Revolut will use Visa to expand in 24 new markets, for a total of 56 around the world and simultaneously partner with Mastercard for at least 50% of existing and future cards issued in Europe (Visa will have the other half), according to a statement.

The fintech uses its licence with Lithuania’s central bank to service Europe, but it will have to partner with a US-licensed bank when it starts rolling out cards to US citizens. (more…)

Banks, Global trends, Mobile-first banks

October 22, 2019

304

Fintonic Becomes Latest Challenger Bank to Receive Banking License

via Finovate blog

After receiving its banking license from the Bank of Spain last week, personal finance platform Fintonic has become Spain’s newest challenger bank. Having passed all of the certifications, Fintonic is now a payment initiation service provider (PISP) and PSD2 compliant account aggregation service provider (AISP). (more…)

Global trends, Mobile-first banks, PFM/PFP services

October 22, 2019

461

Revolut looks to raise £1.2bn from investors

via AltFi

Revolut is looking to raise $1.5bn (£1.2bn) from investors, as it targets the mantle of becoming the world’s most valuable fintech in Europe.

Revolut has hired investment bank JP Morgan to oversee both a $500m (£395m) equity raise and the issue of a $1bn (£790m) convertible loan, according to a report in Sky News.

Chief Executive and founder Nik Storonsky is targeting a valuation of between £3.9bn and £7.9bn to propel Revolut to become the most valuable fintech in Europe. (more…)

Banks, Mobile-first banks

October 14, 2019

437

Brazilian fintech Nubank has grown to 15 million users: CEO

via Reuters 

Brazilian financial technology start-up Nubank now has 15 million clients, the firm’s chief executive said on Friday, a figure which underlines the rapid growth of the Sequoia Capital-backed venture in Latin America’s largest economy. (more…)

Banks, Mobile-first banks

October 11, 2019

467

Starling adds digital insurance firm Nimbla to marketplace

via Finextra

Challenger bank Starling has partnered with digital insurance platform Nimbla to offer its 65,000 small business customers the ability to protect themselves from financial losses caused by bankrupt clients

Starling business customers can shelter themselves from risk quickly and easily by purchasing insurance cover, for either single of multiple invoices, after signing up for a free Nimbla account directly in the Starling Marketplace.

(more…)

Banks, Insurance, Mobile-first banks

October 10, 2019

581

Digital bank N26 bigger than HSBC in France with 1 million customers

via Yahoo news

Germany’s hot online banking startup N26 said on Thursday that it has hit the 1-million customer mark in France last month.

The online bank, launched in France in 2017, now has gone past HSBC, which has approximately 900,000 customers according to its 2018 report. (more…)

Banks, Mobile-first banks

October 10, 2019

574

UK Challenger Bank Tide Secures £44.1 Million Through Series B Funding Round Led By SBI Group & Augmentum Fintech

via Crowdfund Insider

Tide, a UK-based SME challenger banking, announced on Monday it secured £44.1 million through its Series B funding round, which was led by specialist fintech investment companies, The SBI Group and Augmentum Fintech plc.

As previously reported, Tide describes itself as a current account that saves businesses time and money with its tools that automate bookkeeping and make paying/sending invoices quicker. (more…)

Banks, Deals, Mobile-first banks, SME

October 7, 2019

494

Upstart banking company Dave is now worth $1 billion, as Norwest puts in $50 million

via TechCrunch

Dave, the personal finance manager turned challenger bank, landed a $50 million investment from Norwest, valuing the company at $1 billion. Dave has over 4 million users with roughly 800,000 people on the waiting list to use its banking services. The company monitors everyday monthly payments and reports them to credit agencies to improve customers’ credit ratings. The fintech also provides up to $100, interest-free, overdraft protection. (more…)

Banks, Mobile-first banks, PFM/PFP services

October 2, 2019

562

Bnext raises $25 million for its mobile banking alternative

via TechCrunch

Spain-based neobank Bnext has raised a $25 million funding round. The fintech already has 300,000 active users and processes €100m ($109m) in monthly transactions. When you open a Bnext account, you get a card and can connect your existing bank accounts to manage finances from a single app. Bnext offers financial products from third-party companies as well. The company has an e-money license and operates in Spain, but plans to expand to Latin America, starting with Mexico later this year.  (more…)

Banks, Mobile-first banks

October 1, 2019

491

Another challenger bank is trying its luck in the UK. This is how it hopes to sweep the market

via Sifted

Holland’s Bunq is launching in Britain this week. Will its “life-hack” features, ethical investing, and credit-card offering be enough to lure a more mature market? (more…)

Banks, Global trends

October 1, 2019

668

Revolut chooses Visa as lead issuing partner for its international expansion

via Tearsheet 

Visa and Revolut are growing their relationship via an expanding partnership in Europe, adding 24 new markets globally. (more…)

Banks, Mobile-first banks

September 30, 2019

425

UK Challenger Banks Struggle To Compete

via PYMNTS

Challenger banks in the U.K. are having a hard time competing with the country’s big four financial institutions.

While challengers such as Metro Bank, Santander and Monzo were expected to put a stop to the dominance of the big four, they are instead failing to thrive, according to the Financial Times. Last week, Santander lost 1.5 billion pounds ($1.8 billion) from the valuation of its business, while shares in Metro Bank fell 30 percent after it was forced to cancel a planned bond sale.

(more…)

Banks

September 30, 2019

449

Swedish challenger bank PFC goes live on Mambu technology

via FinTech Futures 

Swedish neobank Personal Finance Co (PFC) has gone live on Mambu’s software-as-a-service (SaaS) banking engine 10 months after launch.

PFC offers a personal finance app with an accompanying debit card. Customer are encouraged to reach their financial goals through “automation and data-driven insights.”

The bank plans to launch personalised savings and credit products in the near future and aims to accrue 100,000 users by the end of the year. It operates under a payments institution licence, rather than a full banking licence. (more…)

Banks, Mobile-first banks

September 30, 2019