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”

Member Exclusive, Podcasts

Inside Cross River’s ecosystem of some of the best fintech brands

  • Cross River combines tech and banking to power brands like Affirm, Coinbase, Upstart, Upgrade, and Stripe.
  • Chief strategy officer Karan Mehta joined us at The Big Bank Theory Conference to discuss how Cross River’s technology enables the delivery of innovative financial solutions to millions of consumers and businesses.
Zachary Miller | December 03, 2021
Member Exclusive, Podcasts

‘Don’t let any legacy tie you down’: How Piermont Bank blends humans and technology to service midmarket SMBs

  • Piermont Bank serves mid market SMBs with a hybrid blend of digital and human bankers.
  • CEO Wendy Cai-Lee joins us on the podcast to talk about building a bank that addresses SMB pain points.
Zachary Miller | December 01, 2021
Member Exclusive, Podcasts

‘We see more and more nonprofits adopt the fintech model’: Prudential Financial’s Sarah Keh

  • Large financial organizations are increasing their work in their communities and with inclusivity.
  • Prudential's Sarah Keh joins us on the podcast to talk about her work with nonprofits and the city of Newark, New Jersey.
Zachary Miller | October 14, 2021
Member Exclusive, Podcasts

Embedding communications into financial services with Twilio’s Bijon Mehta

  • Twilio's embedded communications tools work behind the scenes in many of today's top fintechs and FIs.
  • Bijon Mehta, who leads the firm's work in financial services, joins us on the podcast to shed some light on where the firm grows from here.
Zachary Miller | September 21, 2021
Data, Member Exclusive, Podcasts

‘Data aggregation is used today in ways we wouldn’t have thought about five years ago’: Fiserv’s Kevin Hughes

  • Fiserv enables banks, credit unions, and fintechs to aggregate data seamlessly and securely.
  • Kevin Hughes, who manages the AllData products, talks to Tearsheet about changes in the aggregation field and where it's heading.
Fiserv | September 09, 2021
More Articles