New banks, Podcasts

The Challengers 8: Neobank exit strategies — TransferWise edges closer to banking — top 5 sleeper challenger banks

  • This week's episode explores exit strategies for the top challenger banks.
  • Hosts Josh and Zack also explore top sleeper digital banks.
close

Email a Friend

The Challengers 8: Neobank exit strategies — TransferWise edges closer to banking — top 5 sleeper challenger banks

In the wake of last episode’s eulogy for JPMorgan Chase’s Finn, your hosts explore exit strategies for the top challenger banks. Who buys these companies and do they get bought at technology premiums?

Josh and Zack are both skeptical that they have clear exit strategies. They discuss IPOs, and getting bought by large banks, telecoms, and payment companies.

SubscribeiTunes I SoundCloud I Spotify
The following excerpts were edited for clarity.

Next up, Zack spoke about TransferWise’s launch of a debit card for US customers. This product — telegraphed for a long time — moves TransferWise a step closer to being a banking alternative. Combined with the remittance firm’s borderless accounts, people who deal in multiple currencies appreciate TransferWise’s approach to slicing the industry’s high costs.

Zack also referenced Tearsheet research that showed financial professionals do recognize the money transfer firm as a competitive offering in consumer banking over both the short and medium term.

If TransferWise is a sleeper challenger, who else is, too?

Josh suggests that telecoms — following on the heels of T-Mobile’s banking launch — can turn into banking options given their size and the amount of data they have on their customers. Zack thinks PayPal/Venmo and Square Cash look like formidable competitors in the long term. Josh also mentioned China’s Ant Financial as a global competitor with tech and ambition. Zack thinks investing firms, like Robinhood and Stash, have sticky userbases and can further leg successfully into banking services.

0 comments on “The Challengers 8: Neobank exit strategies — TransferWise edges closer to banking — top 5 sleeper challenger banks”

Podcasts

‘Early investors didn’t get going global’: Rapyd’s CEO Arik Shtilman on growing 4x in 2020

  • Revenue quadrupled in 2020 for Rapyd, an embedded payments player.
  • The company just raised $300 million to invest in growth of products and marketing in its global expansion.
Zachary Miller | January 13, 2021
New banks, Podcasts

‘With a $4 billion budget, we can do quite a bit around heritage technology’: Chase’s CIO, Rohan Amin

Zachary Miller | December 23, 2020
New banks, Podcasts

‘Freelancers need a business and personal account under one roof’: Oxygen’s Hussein Ahmed

  • With all the banking options, freelancers find themselves with products that don't fit their needs.
  • Oxygen's CEO joins us to talk about what freelancers need from their banks and how to give it to them.
Zachary Miller | December 22, 2020
Online Lenders, Podcasts

‘We see a lot of whitespace in credit cards for near prime customers’: Avant’s James Paris

  • Avant was one of the first digital lenders.
  • Almost eight years later, CEO James Paris is leading the company into new financial products.
Zachary Miller | December 21, 2020
New banks, Podcasts

Santander’s Patrick Smith on the state of SMB banking in the U.S.

  • Santander has 150,000 small business clients across its seven state footprint.
  • Head of small business banking, Patrick Smith joins us on the podcast.
Zachary Miller | December 16, 2020
More Articles