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Q1 2021
3 Minutes

Top 5 Highest Valued Challenger Banks in 2021

We’ve witnessed rapid growth in the financial landscape over the past decade, this is in part due to significant increase in investment within the FinTech sector, which ultimately accelerated the digitalisation of our transactions. This rapid growth generated a fertile ground for only-digital challenger banks to prosper, competing with and even exceeding the value proposition of the established traditional banks, which previously saw no place for competitiveness within the banking industry.

Which challenger banks have been shaping the market?

5- Monzo $1.65 Billion

This UK based neo-bank has proven itself as one of the most promising neo-bank to have emerged from the UK. Having been founded in 2017 and serving over 4 million customers, the company has received an astonishing rating on their service quality. Monzo even expanded to catering to business banking, attracting over 600000 business customers.

  • Customers: 4.9 Million
  • Valuation: $1.65 billion
  • Foundation year: 2017
  • HQ: London, UK
  • Geographical Availability: UK, US
  • Time To Unicorn: 3.7 years
  • Top Investors: Thrive Capital
  • Profitable? No. £113.8 million loss in 2020

Unique Selling Points: 
Top notch customer support
Offers savings accounts and travel insurance

The Pros:
Regulated by FCA & PRA
Spendings divided into 16 different categories
↑ A 1% interest on savings above £1,000

The Cons:
Daily ATM withdrawal limit £400
International ATM withdrawal fee of 3% above £200

Customer Support
24/7 in app support, phone, email.

4- N26 $3.5 Billion

The digitally native, German based bank is one of the earlier challenger banks in FinTech. In a 2019 funding round, N26 raised $100M in 2020, giving it a whopping valuation of $3.5 billion.

  • Customers: 6.5 Million
  • Valuation: $3.5 billion
  • Foundation year: 2015
  • HQ: Berlin, Germany
  • Geographical Availability: Europe, US
  • Time To Unicorn: 6.2 years
  • Top Investors: Tencent, Greyhound Capital, GIC
  • Profitable? No. $86M loss

Unique Selling Points: 
User-friendly banking products

The Pros:
Loans to selected countries (DE)
P2P payments by phone and email

The Cons:
Limited services outside germany

Customer Support
In app support, phone, email.

3- Revolut $5.5 Billion

The UK based neo bank was founded in 2015, with the objective of diversifying their offerings. Revolut currently stands at a valuation of $5.5B and catering to customers from Europe, the US and Australia. One of the only neo banks with access to cryptocurrencies to its premium customers.

  • Customers: 13 Million
  • Valuation: $5.5 billion
  • Foundation year: 2015
  • HQ: London, UK
  • Geographical Availability: Europe, US and Australia
  • Time To Unicorn: 3.3 years
  • Top Investors: Tech Nation, Ribbit, DST
  • Profitable? No. Breakeven in November 2020

Unique Selling Points: 
Low fees banking

The Pros:
Cryptocurrencies  for premium accounts
Commision-free stock trading

The Cons:
No Loans/overdrafts
Not accessible to emerging markets

Customer Support
24/7 in-app chat

2- Chime $14.5 Billion

Undoubtedly one of the most long-standing neo banks, Chime has been acknowledged as a pioneer by many within the fintech sector. With Chime’s remarkable performance, it reached a valuation of $14.5B within 7 years of operating.

  • Customers: 10 Million
  • Valuation: $14.5 billion
  • Foundation year: 2013
  • HQ: San Fransisco, US
  • Geographical Availability: US
  • Time To Unicorn: 5.9 years
  • Top Investors: DST, General Atlantic, Tiger Global
  • Profitable? Undisclosed.

Unique Selling Points: 
Low Cost Banking

The Pros:
No monthly fees
Automatic Savings
↑ No Foreign Transaction fees

The Cons:
No Loans
Availability Only in US

Customer Support
In-app support, Phone, Email.

Curious Why Challenger Banks Are So Successful?

  • What's a "challenger bank" & How are they winning?
  • Why 2020 a breakthrough year for challengers was
  • The best performing Challenger in 2020 (Revolut)
  • The advantages Challengers have over incumbents
  • The future of banking

1- NuBank $25 Billion

Emerging from Brazil in 2014, Nubank now has over 25 million customers in Brazil, Mexico, and recently even in Colombia. Nubank has ran several successful investment round, giving it a valuation of $25B, which makes it one of the most valued banks in the Fintech landscape.

  • Customers: 30M
  • Valuation: $25B
  • Foundation year: 2014
  • HQ: São Paulo Brazil
  • Geographical Availability: Brazil, Mexico, Colombia
  • Time To Unicorn: 4.8 years
  • Top Investors: Ribbit, Tencent, Goldman Sachs

Unique Selling Points: 
Reward Systems
User Independency
No annuity fees

The Pros:
Free account
Free transfer for customers
Credit available

The Cons:
Fixed withdrawal fees
Only in Brazil, Mexico & Colombia

Customer Support
Email, Social Media, Live chat, FAQ support, Phone.

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