US Fintech/Digital Challenger Banks

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US Fintech/Digital Challenger Banks: Part I

Out of the four analyzed companies, MoneyLion has the most customers, followed by Robinhood. Robinhood, however, has the highest valuation, at $7.6 billion. BankMobile was acquired by Flagship Community Bank in 2017.

VARO MONEY

  • Number of customers: Varo Money services more than 750,000 customers.
  • Total funding received: Varo Money received $174.8 million in funding.
  • Most recent valuation: After completing its Series C funding round in July for $100 million, Varo Money was estimated to be valued at over $420 million.

MONEYLION

  • Number of customers: MoneyLion has over 5 million customers, according to MoneyLion's CEO, Dee Choubey.
  • Total funding received: MoneyLion received $227.5 million in funding.
  • Most recent valuation: Even though MoneyLion would not disclose its valuation, TechCrunch cited insider sources as saying that the startup is close to reaching a $1 billion valuation.
  • ROBINHOOD

  • Number of customers: Robinhood has over 4 million customers, with an average age of 32.
  • Total funding received: Robinhood received $862 million in funding.
  • Most recent valuation: After completing its Series E funding round in July for $323 million, Robinhood was valued at $7.6 billion.
  • BANKMOBILE

  • Number of customers: BankMobile has grown to 2 million customers, as of April 2019.
  • Total funding received: BankMobile was acquired for $175 million in cash by Flagship Community Bank, therefore the funding data is not publicly available.
  • Most recent valuation: BankMobile was valued at $175 million when it was acquired by Flagship Community Bank.
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    US Fintech/Digital Challenger Banks: Part II

    Out of the analyzed companies, SoFi has the highest valuation at $4.3 billion, while Revolut has the most customers. Marcus is a digital banking subsidiary of Goldman Sachs, a large US investment bank.

    MARCUS

    • Number of customers: Marcus has over 4 million customers.
    • Total funding received and valuation: Marcus is a subsidiary of the international investment bank Goldman Sachs, so the funding and valuation information is not available for this company.

    REVOLUT

    • Number of customers: As of March 2019, Revolut claimed it reached 4.5 million customers.
    • Total funding received: Revolut received $336.4 million in funding.
    • Most recent valuation: Revolut is valued at $1.7 billion dollars after it completed its last funding round in March 2019.

    SOFI MONEY

    • SoFi Money is a product of the company SoFi.
    • Number of customers: SoFi has more than 700,000 customers.
    • Total funding received: SoFi raised a total of $2.5 billion in funding.
    • Most recent valuation: After it received private equity funding from the Qatar Investment Authority, SoFi was valued at $4.3 billion.
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    US Fintech/Digital Challenger Banks: Disruptors

    Ally Bank, Chime, and Zero are three challenger banks that are disrupting the US market. Even though many European challenger banks are entering the US market, all three banks presented here are based in the US. Ally Bank offers the highest interest on its savings accounts, Chime provides its customers with a zero-fee banking experience, while Zero combines a mobile banking app, a rewards credit card, and a checking account into one seamless experience.

    ALLY BANK

    • Ally Bank is a digital-only bank that employs more than 8,200 people. It won the title of "Best online bank" in 2018, which is awarded annually by the Money Magazine. It claims it has the highest interest on its savings accounts out of all US banks.
    • Number of customers: Ally Bank reported having 1.65 million customers in its 2018 financial report.
    • Valuation: Ally Bank is a subsidiary of Ally Financial Inc, a publicly traded company. Ally Financial currently has a market capitalization of $12.7 billion.

    CHIME

    • Chime is a challenger bank that helps its customers avoid bank fees. It offers a fee-free checking account. Chime's unique feature is that it doesn't profit from its customers directly. Rather, Chime earns profit from Visa whenever one of its customers uses his Visa card to make a purchase.
    • Number of customers: In March 2019, Chime announced it tripled its number of customers from last year, reaching 3 million users.
    • Total funding received: Chime secured a total of $308.8 million in funding.
    • Valuation: After its last funding round, Chime was valued at $1.5 billion.

    ZERO

    • Zero is a product created by the Zero Financial company. Zero consists of the Zero mobile app, the Zerocard — a rewards credit card, and their checking account called Zero Checking. It uniquely blends the credit card and checking accounts, and pays out annual interest on the remaining balance.
    • Number of customers: Zero launched in 2018 to only a very small number of customers who tested out all features of the platform. In July, it launched its product to a waiting list of over 200,000 people.
    • Total funding received: Zero raised $47 million in total. Its last funding round was a Series A funding round, led by New Enterprise Associates.
    Sources
    Sources