Challenger banks shift from growth mode to focus on profitability
- Challenger banks around the world have sprouted up like mushrooms after the rain.
- As they mature, neobanks go through a lifecycle where they shift from growth at all costs to focus on profitability.
There has been a significant lift in the number of challenger banks launched over the past year. It’s estimated that there are 319 challenger banks around the world, according to research from Exton Consulting.
But the growth in new challenger banks appears to be plateauing as existing players shift their focus away from growth-at-all-costs and to profitability.
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