Banking as we know it is undergoing a paradigm shift. Brick and mortar presence through traditional branches are experiencing waning interest in geographies and markets where the digital revolution is changing customer taste and preferences. The emergence of Fintech focussed challenger banks is redefining the banking industry with its slick mobile apps that resonate with consumers comfortable with digital channels.
According to a report by Zion market research global digital banking market was valued at approximately USD 6,620 million in 2018 and is expected to generate revenues of around USD 8,646 million by 2025, at a CAGR of around 4% between 2019 and 2025.
UK’s leading challenger bank Monzo offers everything you’d expect from a digital bank - a well-designed app, free international payments, money management advice, etc.
San Francisco headquartered Chime is leading from the front to provide customers quicker, easier banking options than those offered by traditional banks. Because Chime deposits salaries and other payments immediately into consumer accounts once it receives notification of a pending deposit, users of its service can reportedly receive money two days faster than through traditional banks.
Down south based in Melbourne Australia Up Banking is designed, developed and delivered through a collaboration between Ferocia and Bendigo Bank. As standard, Up offers a standard card and current account service. Where the bank excels is in its financial insights, which are designed to give its users complete clarity on where and when they spend their money. From the location, time and recipient identity, Up creates month by month spend analysis and insights for its users.
Founded in 2018, Doconomy is the youngest and smallest online bank based out of offices in Stockholm, Sweden. Doconomy has a very unique business model based on the principles of mobile banking services for everyday climate action. Doconomy helps its users understand the environmental impact of their purchasing decisions. Its first solution, DO, was launched last year and is the world’s first credit card that allows users to track their carbon impact and compensate by investing in sustainable, positive impact projects.
Challenger Banks have had quite the success to start with revolutionizing the way banking is viewed. Going forward the trend of innovation in banking seems interesting, with niche players leveraging the gen-next technologies.
Credits : Akhil Handa,Prithwijit Ghosh