Executives who see challenger banks as threat for traditional banking U.S. 2020-2023

Neo- and challenger banks have become more and more popular in recent years, attracting an increasing number of customers particularly among younger generations. Traditional banks and financial institutions also started to acknowledge the potential of these new players in the financial sector. According to a yearly survey carried out between 2020 and 2023 among executives at banks and credit unions in the United States, the share of respondents who saw neo- and challenger banks as a competitive threat for traditional banking increased steadily between 2020 and 2022, from 14 percent to 33 percent. However, as of 2023, the share of executives who saw challenger banks as a threat fell back to 21 percent.