Member Exclusive, New banks

What’s happening in challenger banking, June 2021

  • Tearsheet publishes Challengers, its bi-weekly newsletter on what's happening in digital banking.
  • Here are the the ins and outs of how digital is impacting the business of banking as of June 2021.

Email a Friend

What’s happening in challenger banking, June 2021

Tearsheet publishes its bi-weekly newsletter Challengers, underlining the important moves and stories in digital banking. Subscribe here.

Challenger banks continue to be knee deep in the niching game. And freelancers and small-business owners may turn out to be a promising segment to zero-in on. -- Rivka Abramson

Our top stories

‘There is not one day that is predictable when you’re in start-up mode’: A Day in the Life of Toni Harrison, CMO of Fair

4 charts on banks’ digital transformation strategies

‘We’re building a new category’: Banking solutions for freelancers could become a hit

Cheese, a digital bank for immigrants, rolls out rewards geared towards Asian-owned businesses

‘I don’t need you to add a rainbow to your social media’: Daylight’s #CallMeByMyName campaign targets the American Bankers Association

Banking software providers are helping their clients go digital

‘It’s not just about sharing –it’s about what consumers can do now’: U.S. Bank and Plaid agree to share data

‘I have a visceral understanding of the underserved customer because I was one too’: The story behind Ahead Financials

Freelancers and small businesses are emerging as a prominent niche to focus on for challenger banks

Covid-19 has left people jobless, but it’s also left them with more time to pursue other goals, including starting their own businesses.

  • Small businesses builders today make up 85% of the US economy.
  • Freelancers are getting more space in the job market, with 90% of companies surveyed saying they wouldn’t mind a few more freelancers on board. 

Lili is a challenger bank that’s zeroing in on this trend. The company recently passed the 20,000 user mark, and raised $55 million in its Series B funding. It also reported it’s grown by 1,500% in one year.

  • The challenger bank provides an account to its users that doubles as both personal and business.
  • The account includes features that do things like automatically put away money for taxes and categorize expenses.
  • The next things the challenger bank wants to tackle include invoicing and credit evaluations.Lili aims to serve women most of all. 60% of the challenger bank’s new users are women.

What we're reading

After raising $20 million in just 40 days earlier this year, Fair, a challenger bank for immigrants, officially launches (TechCrunch)

Challengers and fintechs give established providers a wake-up call (The Financial Brand)

Gen Z and millennials want generosity from their financial service providers -- challenger banks are zeroing in on that (American Banker)

If they really want to stick around, incumbent and challenger banks may have to stick together (altfi)

SMB focused challenger bank NorthOne partners with Bancorp and Galileo (PYMNTS)

Artificial intelligence and machine learning are proving to be the safest way to prevent financial fraud. Challenger banks are using these tools to improve their onboarding process (PYMNTS)

German financial regulator BaFin orders N26 to fix money laundering controls (Banking Dive)

0 comments on “What’s happening in challenger banking, June 2021”

Outlier OpinionsMakers

New banks

‘We’re shortening the distance between consumers and the products they want and need’: MoneyLion’s Dee Choubey comments on Q3’23 and more

  • MoneyLion delivered strong third-quarter earnings and revenue last week.
  • Dee Choubey, co-founder and CEO of MoneyLion, discusses where the firm stands today and the trends propelling digital banking heading into 2024.
Sara Khairi | November 14, 2023
New banks

‘Fintechs need to do a better job of talking about how we’re at the forefront of trust and security’: 5 questions with MoneyLion’s CEO Dee Choubey

  • MoneyLion's revenue increased 34% to $93.7 million in Q1 2023 from $70 million in Q1 2022.
  • Tearsheet spoke with MoneyLion's Dee Choubey about the increased revenue for the quarter, the advancing role of AI in banking, and how the banking crisis is affecting fintechs.
Sara Khairi | May 18, 2023
New banks

5 questions with Stash CEO Liza Landsman

  • Stash continues to grow, expanding its B2C offering while it expands into working via a B2B model.
  • We recently caught up with new CEO Liza Landsman about her new role and where the firm is headed.
Zachary Miller | May 04, 2023
New banks

Quick Take: MoneyLion partners with Column Tax – but how does the partnership align with the former’s product suite?

  • In order to provide convenient tax filing experience to its customers, MoneyLion has partnered with Column Tax. So how is this partnership in line with its product suite?
  • MoneyLion shareholders have had a rough ride lately as the firm’s share price tumbled 80% last year and 18% in February this year -- can the company gain ground in the long term on the strength of its underlying businesses?
Sara Khairi | March 16, 2023
New banks

Gamifying financial literacy is tough. Can Greenlight’s Level Up get it right?

  • Financial literacy games can be gimmicky and may fail to find the balance between “game” and “education”.
  • Level Up by Greenlight focuses on gamification in a manner that's sticky, but for the right purposes.
Rabab Ahsan | February 17, 2023
More Articles