Today, there are still thousands of branch-based banks and credit unions in the U.S. and competition from new, online focused challengers has been limited. However, this may be changing as there is clearly a groundswell of new, well-funded competition emerging from “Challenger Banks.” The Challenger Bank trend first emerged in Europe and may now be gaining traction in the U.S. as well as other regions of the world. While time will tell whether the new crop of Challenger Banks will be successful, some are experiencing significant growth and investor appetite towards funding these upstarts appears to be strong.
The Rise of Challenger Banks
Are the Apps Taking Over?
Despite ongoing innovation and regulatory turmoil in financial services over the past couple of decades, traditional banks have largely preserved their role in the financial ecosystem.