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

‘It’s not just about a QuickBooks integration — you have to look at the business problem’: Codat’s Peter Lord

  • Codat zeroes in on small business financial data, which is a very different problem to solve than aggregating consumer data.
  • Peter Lord, CEO of Codat, joins us on the podcast to discuss the evolution of use cases for SMB financial data that he’s seen over the past 5 years of running Codat.
Zachary Miller | October 05, 2022
The Green Finance Podcast

The Green Finance Podcast Ep. 10: Tangible steps banks can take to help their customers lower their carbon footprint

  • The majority of people want to know more about the environmental impact of how they spend their money and want their banks to help them take action and reduce their environmental impact.
  • I'm talking about this today with my guest Emma Kisby, UK & Europe CEO of Cogo - a company that provides carbon footprint management products.
Iulia Ciutina | September 30, 2022
Where Credit's Due Podcast

Where Credit’s Due Ep. 10: Getting capital without dilution or debt through recurring revenue financing, with Pipe and Anthemis

  • Today we're talking about another way of accessing capital: recurring revenue financing. If there's cash flow coming in, this recurring revenue is made into a tradable asset that can be sold to investors.
  • It's a dilution-free and debt-free form of financing, which we explore in detail with Michal Cieplinski, Chief Business Officer at Pipe, and Farhan Lalji, Investor at Anthemis.
Iulia Ciutina | September 28, 2022
Podcasts

Behind Amex’s use of Kabbage as ‘the heartbeat’ of its strategy to help SMBs with cash flow

  • Two years after American Express bought small business lender Kabbage, the products are integrated and growing.
  • Tearsheet sat down with Kabbage's head of marketing to get insight on where the growth is coming from and where the company is headed.
Zachary Miller | September 27, 2022
Payments, Power of Payments Podcast

Power of Payments Ep. 14: JPMorgan vs Stripe and Block, CFPB is coming for BNPL, and is LTO a viable BNPL alternative?

  • This week, we talk about JPMorgan’s acquisition of payments firms Renovite, and the CFPB’s recent report on BNPL firms, which suggests that regulation is coming for the sector.
  • We also discuss why lease-to-own, which is another type of installment payment option, has been gaining popularity in recent months.
Ismail Umar | September 23, 2022
More Articles