Research: 36 percent of industry professionals don’t think challenger banks are competitive
- Tearsheet asked professionals what they thought of challenger banks.
- Almost thirty percent of those polled think these upstarts are 'overhyped'.
Challenger banks like Chime in the U.S. and Revolut, N26, and Monzo in Europe get a lot of press about their headline customer growth numbers. Some of these neobanks are opening up tens of thousands of new accounts a day as they expand internationally.
But insiders in the industry are more skeptical about challenger banks’ prospects for growth, at least in the short run. 36.4 percent of industry professionals don’t think challenger banks are competitive over the next three years, according to Tearsheet Research. 27.3 percent responded that challenger banks were completely ‘overhyped’.
Expectations for challenger banks do improve over time. Within 3-10 years, 54.6 percent expect challenger banks to be ‘somewhat competitive’ to ‘very competitive’ with incumbent consumer banks.
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