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challenger banks
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336

How Monzo, Revolut, Starling and N26 plan to topple legacy banks

via WIRED UK

Digital banks aren’t going anywhere – with Monzo, Starling Bank, Revolut and N26 starting to rival legacy banks. Perhaps best known for their personal finance apps, they are now also starting to sell financial products. And there’s a lot more to come.

Meanwhile, traditional high-street banks are trying to up their game by investing in – and imitating – their digital offerings. Last month, for instance, NatWest began trialling Mimo, a new personal finance app with budgeting tools, spending insights and reminders. It will be rolled out later in 2019. Barclays, HSBC and others are also jumping on the bandwagon and adding features to their existing mobile banking apps. (more…)

Banks, Fintech news, Global trends, Mobile-first banks

May 17, 2019

277

YouTrip, a challenger bank in Southeast Asia, raises $25.5M for expansion

via TechCrunch

Singapore-based startup YouTrip thinks consumers of Southeast Asia deserve a taste of the challenger bank revolution happening in the U.S. and Europe, and it has raised $25.5 million in new funding to bring its app-and-debit-card service to more parts in the region. (more…)

Banks, Fintech news, InspirAsia, Mobile-first banks, Singapore

May 16, 2019

525

FrankieFinancial signs Australian neo banks to RegTech platform

via Finextra

RegTech startup FrankieFinancial has signed Australian neo banks Xinja and Novatti Group to its financial systems aggregator platform, which provides a single point of access to ID verification, KYC, AML, fraud and credit tools from 114 vendors and data sources. (more…)

Banks, Fintech news, InspirAsia, Mobile-first banks, RegTech, Security

May 15, 2019

536

Tink, the European banking platform, partners with British incumbent NatWest

via TechCrunch

It’s easy to push a narrative of fintech upstarts versus the big incumbent banks, but the more subtle reality is that as well as competing on numerous fronts, there are partnerships being formed across the board. The latest such move sees Tink, the Sweden-based banking platform that raised €56 million in new funding in February, partner with British bank NatWest.

The agreement gives NatWest access to Tink’s Personal Finance Management (PFM) and “Data Enrichment” products, which will be integrated into NatWest’s core mobile banking app. This will allow NatWest to improve its mobile banking offering by giving NatWest customers personalised insights into their finances based on transaction history. The features built with Tink’s technology are planned to go live in Q4 2019. (more…)

Banks, Mobile-first banks, PFM/PFP services

May 8, 2019

339

Tandem Recognized as Best New Digital Bank

via Crowdfund Insider

Challenger bank Tandem has been recognized by CFI.co (Capital Finance International) as the “Best Neo Bank UK 2019.”

According to Tandem, the CFI.co judges stated that “Tandem differentiates itself from other banks in the way its people always consider how well a new initiative will work for the customer and how it helps to solve real money problems.” (more…)

Banks, Mobile-first banks

May 7, 2019

698

Who’s the Real Challenger? The Paradoxes of Digital Consumer Banking in the U.S.

via PaymentsJournal

Mention the term “challenger bank” and bankers might free-associate labels such as “fintechs,” “disruptors,” or “non-banks.” Those terms would certainly be apt for a small group of tech-driven market entrants, most focused on providing mobile-savvy transaction accounts for consumers who may have an anti-bank mindset.

However, if you stand back and look at the market data (as we did for our recently released report, Digital Consumer Banks in the U.S.: Your Money or Your Wallet), some of the most fearsome online competitors for U.S. consumers’ deposits have very familiar names (or parent names): Marcus (Goldman Sachs), Discover Bank, American Express Bank, USAA Bank, Charles Schwab Bank, Capital One 360. A new crop of digital banking divisions with unique brand identities and products is also coming to market: Finn (JPMorgan Chase), Greenhouse (Wells Fargo), Citizens Access (Citizens Bank), and more. In total, these well-connected digital divisions are already providing co-opetition for their branch-centric retail banking divisions. (more…)

Banks, Global trends

April 25, 2019

1133

SME Challenger Bank Judo Bank Receives Full Banking License From Australian Prudential Regulation Authority

via Crowdfund Insider

Judo Bank (formerly Judo Capital), an SME challenger bank, announced on Wednesday it was granted a full banking license by the  Australian Prudential Regulation Authority (APRA). According to the bank’s Chairman, Peter Hodgson, the full license means Judo will be able to significantly extend the scope and depth of services it provides to those businesses across the country.

Founded in 2016, Judo stated it is challenging the “one size fits all” approach of its much larger competitors because it believes every business is unique and should be treated that way.

(more…)

Banks, InspirAsia, Mobile-first banks, SME

April 24, 2019

1298

UK Challenger Bank Masthaven Secures £60 Million Investment From Värde Partners

via Crowdfund Insider

UK-based challenger bank Masthaven announced on Wednesday it secured £60 million equity investment by Värde Partners, a global alternative investment firm. According to Masthaven, the investment will enable the bank to deliver against its strategic ambition to become one of the leading specialist banks in UK residential and SME markets.

(more…)

Banks, Fintech news, Mobile-first banks

April 24, 2019

1355

The Monzo effect: how traditional banks are challenging the challengers

via Which?

Many of the major high-street banks have added challenger-style features to their mobile banking offerings in recent years. The article covers key features of the apps from Barclays, Royal Bank of Scotland, HSBC, and Lloyds. When choosing a bank, it’s important to shop around to make sure you’re getting the best deal:  Starling and Monzo’s apps are known for their budgeting and personal finance features, while high-street banks tend to offer a wider range of products through their apps. (more…)

Banks, Mobile-first banks

April 19, 2019

786

New study: Challenger banks overtake traditional banks in customer satisfaction, in 4 charts

via Tearsheet

Challenger banks have leapfrogged to the forefront in overall customer satisfaction, according to a new study from FIS.

The 2019 FIS Performance Against Customer Expectations (PACE) surveyed almost 1800 US consumers.

Customers increasingly like challenger banks

63 percent of direct bank customers report being “extremely satisfied”, compared to 52 percent of credit union customers and just 19 percent of customers of the top 50 global banks. (more…)

Analytics, Banks, Mobile-first banks

April 17, 2019

1351

Monzo’s Tom Blomfield on lie-ins, video games and finding his zen

via Wired.co.uk

Waking up at 3:45am, on the treadmill by 4am while going through emails, reading a book a day and finding time to meditate – that’s the myth of the superhuman startup founder. It would be “pointless even if it were true”, says Tom Blomfield, the 33-year-old co-founder of one of Europe’s newest unicorns – digital bank Monzo. Recently, the company raised more than £200m in funding and plans to expand into the US. (more…)

Mobile-first banks, People of fintech

April 16, 2019

718

Canadian challenger Mogo merges with Difference Capital

via Fintech Futures 

Mogo Finance Technology, the Canadian challenger bank, has signed a definitive arrangement to merge the bank with Difference Capital Financial.

Under the terms of the agreement, each common share of Mogo will be exchanged for one Difference common share. Upon completion of the transaction, former Mogo shareholders will own approximately 80% of the combined entity on a fully diluted basis. (more…)

Banks

April 16, 2019

408

New Challenges, Competitive Threats Sharking Financial Waters

via The Financial Brand

In banking, there’s no shortage of new challenges and competitive threats keeping financial marketers up at night. Facing increasingly intense pressure, traditional institutions are innovating faster than ever. (more…)

Analytics, Banks, Global trends

April 15, 2019

618

Challenger banks face challenges with global expansion

via Tearsheet

European challenger banks are going global. Revolut and N26 are set on acquiring local licenses to launch in markets around the world by assembling regulatory SWAT teams. Others, like OakNorth, are licensing their technology out to go global. Regardless of the expansion strategy, it’s not all unicorns and rainbows as these neobanks push on the growth envelope. Challenger banks are quite delayed in their entry to the US market and have bumped into resistance in other geographies, too. Will challenger banks succeed with their global ambitions? (more…)

Banks, Mobile-first banks

April 15, 2019

187

Aussie challenger 86 400 scores home loan distribution deal

via Finextra

Australian challenger bank 86 400 has come a step closer to launching a home loan product after securing a national distribution deal with mortgage broker aggregator Vow Financial

The deal means 86 400 can deliver home loans via Vow Financial’s network of over 1200 brokers once it secures its full banking license from the Australian Prudential Regulation Authority.

(more…)

Banks, InspirAsia

April 15, 2019

477

Rise of challenger banks in Asia

via The Edge Markets MY

Challenger banks have been a trend in markets such as the UK in the last few years, but activity is ramping up in Asian markets like South Korea, Greater China and Southeast Asia, says James Lloyd, fintech and payments leader for Asia-Pacific at EY, in the recently published Citi GPS: Global Perspectives and Solutions report, titled “Bank X: The New New Bank”. (more…)

Banks, InspirAsia, Mobile-first banks

April 14, 2019

304

Aussie fintech Volt Bank starts by asking consumers what they want

via ZDNet

In January, the Australian Prudential Regulation Authority (APRA) gave fintech startup Volt Bank a licence to operate without restrictions as an authorised deposit-taking institution (ADI). The green light was given to the new player following APRA approval in May 2018 to act in the Australian finance market as a Restricted ADI.

The APRA approval gave Volt the title as the first digital startup bank in Australia to receive a banking licence since the early 2000s. Funds up to AU$250,000 deposited into Volt are guaranteed by the Australian government as part of this arrangement.   (more…)

Banks, InspirAsia, Mobile-first banks

April 11, 2019

642

The Challenger: Dozens’ Aritra Chakravarty

via AltFi

At the beginning of 2019 luminous yellow adverts promoting a mysterious new app began spreading across London.

Called Dozens, the app appeared almost out of nowhere with a digital banking service similar to a Monzo or Starling, but with the addition of a curious 5% fixed interest bond aimed at “savers”.

The only question on everyone’s mind was – who was behind this mysterious startup? (more…)

Banks, Mobile-first banks, People of fintech

April 10, 2019

245

UK Challenger Bank Redwood Surpasses £100 Million Lending Milestone

via Crowdfund Insider

UK-based challenger bank Redwood has reportedly surpassed £100 million in lending. As previously reported, Redwood is considered one of the newest additions to the future of banking, joining peers such as Monzo, Starling, Revolut and more. Redwood is on a mission to target the SME market and its products include mortgages for business owners and professional landlords, as well as a range of savings accounts. (more…)

Banks, Mobile-first banks, SME

April 10, 2019

675

Varo Money gets NICE anti-fraud tech

via FinTech Futures

Varo Money, the US challenger bank, has selected NICE Actimize to implement its financial crime strategy for anti-money laundering (AML) protections, including know-your-customer (KYC) requirements, sanctions screening and transaction monitoring capabilities.

Varo will integrate NICE Actimize’s AML Essentials, a software-as-a-service (SaaS) AML solution that detects and scores a range of banking activities, including customer due diligence, transaction monitoring, watch list filtering and Suspicious Activity Report (or SAR) filings. (more…)

Banks, Fintech news, Mobile-first banks, Security

April 9, 2019

708

Sources: Y Combinator’s growth fund to back challenger bank Monzo

via TechCrunch

Just five months after announcing £85 million in Series E funding, Monzo is already gearing up to raise additional funding, which would almost double its valuation.

As reported in the Sunday Times yesterday, the U.K. challenger bank is close to raising £100 million in further funding in a new round led by an unnamed U.S. investor. If the deal goes through, it will reportedly give Monzo a pre-money valuation of close to £2 billion, up from £1 billion in October.

Now TechCrunch has learned that the new U.S. backer is Y Combinator. (more…)

Banks, Deals, Fintech news, Mobile-first banks

April 8, 2019

501

Envel bank launches “driverless” money management tech

via FinTech Futures

Envel, a challenger bank created around the use of artificial intelligence (AI) targeting millennials and Gen Zs, is launching a “Driverless Banking” framework that automates the steering of customer finances in real-time to stabilise spending.

The bank’s autonomous framework couples with Banking-as-a-Service (BaaS) solution Cambr, while using behavioural insights to centralise money management activities spread across multiple apps, platforms or services. (more…)

AI / Machine Learning / Big Data, Banks, Fintech news

April 8, 2019

791

German fintech company builder Finleap acquires SME banking provider Penta

via TechCrunch

Just since months after raising $7 million in Series A funding, German SME banking provider Penta has been acquired by Finleap. Terms of the deal remain undisclosed, although I understand that the acquisition sees Finleap and Penta’s co-founders becoming the challenger bank’s sole owners, with all other shareholders exiting.

Launched in late 2014 by Hitfox Group and Ramin Niroumand, Finleap has developed 16 ventures from scratch, as well as acquiring a number of fintechs. Companies in its portfolio include banking platform solarisBank, of which Penta is a customer, and digital insurer Element, to name just two. (more…)

Banks, SME

April 2, 2019

903

Australian neobanks target scale of UK rivals without growing pains

via AltFi

A flurry of neo banks in Australia are threatening to make inroads into the dominance of the country’s established lenders.

Sydney-based digital bank Volt promises to offer a faster more personalised service than the country’s big four incumbents – National Australia Bank, Commonwealth Bank, Australia and New Zealand Banking Group and Westpac. (more…)

Banks, Fintech news

April 1, 2019

413

Citi urges incumbents to grow their own challenger brands as new entrants shrink the market

via Finextra

Incumbent banks operating on ageing technology stacks are looking at a 30% revenue hit as new digital-first challengers enter the market, according to a report produced by Citibank. (more…)

Banks, Mobile-first banks

April 1, 2019

447

Inside OakNorth’s plan to take its lending technology global

via Tearsheet

As a challenger bank, OakNorth charts a different course. While Revolut, Monzo, and N26 focus on putting their digital current accounts in the hands of millions, OakNorth doesn’t even offer a current account. While other challengers are racing to acquire banking licenses all over the world, OakNorth is happy with just a UK license.

OakNorth is also posting profits while other challengers aren’t.  The bank announced a £33.9m profit for 2018, up 220 percent from 2017. (more…)

Banks, p2p/online lending, SME

March 27, 2019

502

WTF is banking as a service?

via Tearsheet

Like other industries, banking is in the slow process of moving to the cloud. As this happens, banking functionality is becoming available on demand. By working with a banking as a service provider, any app can bolt on a current account or process payments. This move calls into question what a bank really is and who will function as a user’s primary financial institution. (more…)

Banks, Influences FinTech, Open Source/ API

March 25, 2019