Member Exclusive

Research: More than half of the industry believes challenger banks won’t be competitive with commercial banks

  • Tearsheet asked professionals what they thought of challenger banks.
  • 57.2 percent of respondents believe challenger banks are overhyped.
Research: More than half of the industry believes challenger banks won’t be competitive with commercial banks

A big chunk of financial and fintech industry insiders don’t see challenger banks as making a big dent in incumbent consumer banking. And when it comes to commercial banking, professionals aren’t impressed with the startups’ offerings.

More than half of the industry insiders polled by Tearsheet don’t think challenger banks offerings will be competitive with incumbent commercial banks within 3 to 10 years.

challenger-competition-to-commercial-banking-competition (5)

Interestingly, Tearsheet asked 172 financial and fintech industry professionals to rank challenger banks in order of their competitiveness to commercial banks on a scale from 1 to 5, with 5 being the highest. While no individual upstart bank scored higher than 2.18 (Revolut, Azlo and Novo), respondents believe challenger banks are more competitive as a whole over a ten year period (2.36).


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup

Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo

Already an Outlier member?

Sign in to your account  

0 comments on “Research: More than half of the industry believes challenger banks won’t be competitive with commercial banks”

Member Exclusive

Research: Banks shift consumers and employees to digital channels

  • Recent data show that banks moved quickly to support customers and employees during the pandemic.
  • In spite of the disruption, banks are planning to get back to bigger projects.
Zoe Murphy | April 02, 2020
Member Exclusive

“It’s a simple idea with extraordinary impact”: Inside the growing world of push payments

  • Push payments are enabling whole ecosystems of startups.
  • Here are some major ways push payments are transforming the landscape.
Sara Toth Stub | March 30, 2020
Member Exclusive

Inside Visa’s presentation of the Plaid acquisition

  • Visa acquired Plaid for $5.3 billion.
  • Tearsheet found Visa's presentation given to investors with its rationale behind acquiring the data aggregator.
Michael Deleon | January 28, 2020
Member Exclusive, Modern Marketing

January 2020 Outlier Briefing: WMA’s Scott Mills on what’s working in fintech and financial services PR

  • Scott's PR firm, William Mills, has been working with fintech firms for over 40 years.
  • He shares with us his insights into what's working in PR for today's fintech market.
Michael Deleon | January 23, 2020
Member Exclusive

A look at the leadership behind Marcus by Goldman Sachs

  • Goldman Sachs' Marcus team is bringing in top talent from consumer banking and payments.
  • Tearsheet put together an organizational chart for marketing and product leaders.
Michael Deleon | January 20, 2020
More Articles