Podcasts

Challengers 14: N26 adds to its war chest, the rise of digital private banks, and the future of Green Dot

  • This week's episode explores the fundraisings leading neobanks are using to prepare for a bumpy ride.
  • Also, the rise of digital private banks and Green Dot's future as a banking technology platform.
close

Email a Friend

Challengers 14: N26 adds to its war chest, the rise of digital private banks, and the future of Green Dot

On this episode of The Challengers Podcast, Zack Miller and Josh Liggett talk about the financing rounds some of the larger challenger banks are announcing. They’re extending previous rounds of investment to shore up their businesses as current investors want to ensure these firms can weather the pandemic’s storm.

N26, Revolut and Judo all added to their war chests as they, and their investors, prepare to be going into what Zack called “a nuclear winter”. Josh said some of the challenger banks looking to raise mid-2020 are suffering. So, those firms who can raise, should raise. Josh said that Microsoft has had 2 to 3 years of sales happen in the past few months as firms move further into digital.

Resources:

Green Dot is a company in transition. In some sense, it was one of the first challengers and has seen the rest of the market kind of pass it by. New leadership wants to focus more on its banking as a service platform and spend less on marketing its own products. Josh relates the firm’s evolution to a lot of what’s going on in technology about focusing on the base and jettisoning the side projects.

SPONSORED

Resources:

  • With the founder out, Green Dot brings in new blood to compete in the era of embedded finance
  • New-comer Dan Henry leads Green Dot into its next chapter (Pasadena Now)

Josh related that New Jersey has a shortage of ventilators, surgical masks, and COBOL developers. He’s frustrated on how long it’s taking for banks to fully embrace digital. Zack believes that the pandemic is accelerating a process that was already underway. There’s still a long way to go.

Josh talked about the rise of niche challengers, exemplified by two new European digital private banks looking for their footing, Alpian and 220. He really relates to the idea of banks cropping up to serve communities, and not just local geographies.

Resources:

Banking the rich and famous: The rise of digital private banks (Sifted)

Lastly, the co-hosts talked about some of the tactics firms are using to support their communities during this time. Stash, a challenger bank with roots in micro-investing, has been running Stock Parties, social giveaways of fractional shares of stock. People seem to really enjoy it, it helps with viral marketing, and people tend to invest more in the stocks that they hold in their portfolios.

Resources:

Looking to boost engagement during quarantine, Stash runs “Stock Parties”, which, promoted over Twitter, distribute fractional shares to Stash members. Like the challenger bank’s Stock Rewards, which rewards Stash users with fractional shares when they use their debit card, Stock Parties looks like it encourages stock ownership.

0 comments on “Challengers 14: N26 adds to its war chest, the rise of digital private banks, and the future of Green Dot”

Payments, Podcasts

Payoneer’s Charles Rosenblatt: ‘We found a way to play on both sides of the market’

  • Charles Rosenblatt has a long career in payments.
  • Joining Payoneer recently as chief strategy officer, he joins us to discuss the company's progress and future plans.
Zachary Miller | September 14, 2020
Finance Everywhere, Podcasts

Inside Shopify’s financial services strategy

  • Shopify provides more than a million merchants with the tools they need to start, manage and grow their businesses.
  • By looking after all aspects of business operations in one place, Shopify is able to build financial products -- including banking, money management, credits and payments -- that are tailored to sellers’ needs.
Suman Bhattacharyya | September 11, 2020
Online Lenders, Podcasts

Zest AI’s Mike de Vere: ‘You don’t have to give up economics to be more fair’

  • Machine learning and AI models are changing the face of lending.
  • They're able to clarify the tradeoffs between fairness and economics and optimize them.
Zachary Miller | September 08, 2020
New banks, Podcasts

BMO Harris’ Niamh Kristufek on empowering women in fintech

  • Fintech firms with women at the helm don't receive the same attention and investment dollars.
  • BMO Harris partnered with 1871 on a cohort of women-led fintech firms with the bank's mentorship and programming.
Zachary Miller | September 01, 2020
Podcasts

‘Everything is changing’: Edward Jones’ CIO Frank LaQuinta on the modernization of brokerage

  • In a digital world, traditional stock brokerages are trying to evolve with changing expectations.
  • Edward Jones' CIO joins us on the podcast to discuss technology and how his firm is positioning itself for change.
Zachary Miller | August 19, 2020
More Articles