Member Exclusive

Research: Challenger bank account growth numbers

  • Challenger banks are closing large investment rounds as they capitalize themselves for growth.
  • The race to acquire new customer accounts is heating up.
close

Email a Friend

Research: Challenger bank account growth numbers

As challenger banks attract bigger rounds of venture capital, the race for new account growth is heating up. Earlier in 2019, Tearsheet hosted a webinar with executives from some of the fastest growing challenger and a common theme was scaling growth.

Of course, the industry is beginning to take these numbers with some salt. As challenger banks have made onboarding silky smooth for their customers, people signup up for multiple bank accounts and don’t really using them. Nearly half (47 percent) of UK new account have less than £1,000 in them.

Challengers are trying to figure out how to get customers to use their apps as their primary bank accounts.

Here’s how the top challengers break down in terms of account growth numbers:

Revolut: One of the oldest challengers, Revolut’s early growth was influenced by its crowdfunding campaigns. Investors became users and vice versa. Now, as more money flows towards account acquisition across Europe, the firm believes it can 5x its daily acquisition rate by the end of 2019.

N26: Revolut and N26 kind of go together in the challenger bank playbook. They were started around the same time and both are embarking on a global expansion. N26 was first to launch in the US.

Aspiration: Many of the challenger banks promote doing well by doing good. Aspiration has made values-based marketing part of its brand. The company recently crossed the 1M user mark and seems to be growing exponentially.

Monzo: Until recently, Monzo was really focused on the UK. That’s changing now as the firm embarks on a European expansion. It also has the US in its sights. And the firm is ramping most metrics, including losses.

Chime: As a brand domiciled in the US, Chime appears content with domestic growth and it’s putting up big numbers. Though it has a single market, it appears to be keeping pace with N26 and Revolut.

There are other emerging brands that we’ll add to this chart. Many had a start as something else — like a PFM or investing app — as they evolve into banks. Companies like Dave, Stash, CARD, and Robinhood may eventually make their way on to this list.

0 comments on “Research: Challenger bank account growth numbers”

Member Exclusive

Outlier Briefing: TransferWise’s head of policy Nick Catino on the CFPB’s final Remittance Rule

  • The CFPB's new guidance on the Remittance Rule is a step back for transparency around pricing.
  • TransferWise's Nick Catino puts it in context and charts a future that follows Europe's lead.
Zachary Miller | June 16, 2020
Member Exclusive

Outlier Briefing: The emerging use cases for AI in financial services with Emerj’s Dan Faggella

  • Dan Faggella is a global expert on the use of AI in financial services.
  • He briefs Outlier members on the impact AI can have on the enterprise and with customers.
Zachary Miller | May 11, 2020
Member Exclusive

4 charts on fintech investments moving to lending, expectations for more M&A

  • 2020 has already been a turbulent year for financial services during the pandemic.
  • While not a record year, 2019 was the second best year in history for fintech investing.
Zoe Murphy | May 08, 2020
Member Exclusive

Outlier Briefing: The march towards digitization in banking with Publicis.Sapient’s David Donovan

  • In his financial services practice, David Donovan works with most of the largest banks in the world.
  • He delivers this briefing on where digitization is headed and why it's so important to get right.
Zachary Miller | April 24, 2020
Member Exclusive

Outlier Briefing: Best practices in financial services branding in the COVID-19 era with Landor’s Louis Sciullo

  • Louis Sciullo spent nearly three decades on Wall Street managing Lehman Brothers' and Barclays' brands.
  • He joins us for an exclusive briefing on managing financial brands through and beyond this current crisis.
Zachary Miller | April 17, 2020
More Articles