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Digital challenger banks - statistics & facts

Technological developments in the financial and banking sectors in recent years have allowed more and more people to access their bank accounts and to finalize banking operations from their devices and apps, making physical bank branches almost obsolete, at least for basic banking services and products. This, associated with growing mobile internet and smartphone penetration, led to the emergence of a new player in the financial sector: the digital challenger bank.

Digital challenger banks, also known as digital-only, disruptor or neobanks, are app-based providers of financial services with no physical location for their customers. Thanks to lower costs for running their operations, these new players in the banking industry can focus on customer experience, ease of use, and more personalized services, while being able to offer lower fees compared to traditional banks and even free basic accounts.

Many digital challenger banks have been launched worldwide since 2010, meaning people have become more and more aware of these innovative fintech businesses, which were still unknown and obscure to many until recently. Also, more launches are to be expected in the future. Despite their young age, some of these companies are already worth billions. On the other hand, due to their young age, the large customer base potential in their own markets, and unclear or incomplete regulations abroad, most digital challenger banks remain domestic at the moment, while a few more established players, such as the London-based Revolut and Berlin-headquartered N26, started expanding their operations abroad.

Challenger banks struggle to turn a profit in their early years. In 2019, for instance, Revolut, N26, and Nubank all reported a net loss at the end of the year. So, they turn to investors in order to further their expansion. Investors who are aware of the appeal and potential of this innovative business model, meaning they are willing to provide capital and funding to challenger banks to expand their operations in exchange for high returns in the future. A future that looks bright: internet and mobile devices penetration keeps growing, and so does the number of potential and existing customers, new markets are waiting to be accessed, and the services offering is expanding beyond basic bank accounts.

Key figures

The most important key figures provide you with a compact summary of the topic of "Digital challenger banks" and take you straight to the corresponding statistics.

Funding

Customers

Opinions

Interesting statistics

In the following 5 chapters, you will quickly find the 37 most important statistics relating to "Digital challenger banks".

Digital challenger banks

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Digital challenger banks - statistics & facts

Technological developments in the financial and banking sectors in recent years have allowed more and more people to access their bank accounts and to finalize banking operations from their devices and apps, making physical bank branches almost obsolete, at least for basic banking services and products. This, associated with growing mobile internet and smartphone penetration, led to the emergence of a new player in the financial sector: the digital challenger bank.

Digital challenger banks, also known as digital-only, disruptor or neobanks, are app-based providers of financial services with no physical location for their customers. Thanks to lower costs for running their operations, these new players in the banking industry can focus on customer experience, ease of use, and more personalized services, while being able to offer lower fees compared to traditional banks and even free basic accounts.

Many digital challenger banks have been launched worldwide since 2010, meaning people have become more and more aware of these innovative fintech businesses, which were still unknown and obscure to many until recently. Also, more launches are to be expected in the future. Despite their young age, some of these companies are already worth billions. On the other hand, due to their young age, the large customer base potential in their own markets, and unclear or incomplete regulations abroad, most digital challenger banks remain domestic at the moment, while a few more established players, such as the London-based Revolut and Berlin-headquartered N26, started expanding their operations abroad.

Challenger banks struggle to turn a profit in their early years. In 2019, for instance, Revolut, N26, and Nubank all reported a net loss at the end of the year. So, they turn to investors in order to further their expansion. Investors who are aware of the appeal and potential of this innovative business model, meaning they are willing to provide capital and funding to challenger banks to expand their operations in exchange for high returns in the future. A future that looks bright: internet and mobile devices penetration keeps growing, and so does the number of potential and existing customers, new markets are waiting to be accessed, and the services offering is expanding beyond basic bank accounts.

Interesting statistics

In the following 5 chapters, you will quickly find the 37 most important statistics relating to "Digital challenger banks".

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