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

‘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
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, 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
Podcasts

Behind the launch of the Dayforce Wallet: Ceridian’s Seth Ross

  • As a payroll provider, Ceridian moves $300 billion in wages yearly.
  • Seth Ross, who runs the firm's embedded finance group, joins the podcast to talk about Ceridian's move into banking and early wage access.
Zachary Miller | September 08, 2021
Podcasts

‘We bring the instant gratification from the lottery to help incentivize people to save’: Adam Moelis, Yotta

Zachary Miller | September 01, 2021
More Articles