Challenger Banks In North America Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 10 Billion |
| Market Size (2029) | USD 15.47 Billion |
| CAGR (2024 - 2029) | 9.12 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Challenger Banks In North America Market Analysis
The Challenger Banks In North America Market size is estimated at USD 10 billion in 2024, and is expected to reach USD 15.47 billion by 2029, growing at a CAGR of 9.12% during the forecast period (2024-2029).
Despite ongoing innovation and regulatory turmoil in financial services over the past few decades, traditional banks largely preserved their role in the financial ecosystem. Today, thousands of branch-based banks and credit unions are still in the US, and competition from new, online-focused challengers is limited. However, this may change as a groundswell of new, well-funded competition emerges from 'Challenger Banks.'
As more customers became dissatisfied with traditional banks, challenger banks rose. With no physical branches and lower overhead costs, these online and mobile-only banks can offer better products with lower fees. For younger generations, these features are appealing. Millennials are two to three times more likely to switch banks than other generations. Challenger banks are established firms that operate with a full banking license in the market.
Challenger banks are growing in popularity all over the world, with the impact of coronavirus pandemic restrictions contributing to public uptake of digital services. Challenger banks provide traditional banking products such as current accounts, savings accounts, credit and debit card schemes, and innovative new user-friendly services based on FinTech innovation and online connectivity.
Challenger Banks In North America Market Trends
Convenience Offered to Consumers Drives The Market
Challenger banks provide consumers with mobile applications for highly efficient digital platforms. These banks offer real-time account opening, balance checks, payments, money tracking tools, and advanced chatbot services 24 hours a day, seven days a week. In addition, to fulfill the demands of hyper-connected and well-informed clients, these banks are boosting their investments in digital capabilities and building customer service models to give immediate and personalized services in the market. Therefore, these factors enhance the growth of the market.
United States Dominates The Market
Challenger banks that provide fully digitalized financial services are gaining popularity in the United States. An increase in urbanization and a movement in consumer preference toward digital-only banking services contribute considerably to the expansion of the challenger bank in the United States. Moreover, FinTech organizations have created the United States Fintech Network to facilitate collaboration and promote innovation among the region’s challenger banks. As a result, this has become a significant market growth trend.
Challenger Banks In North America Industry Overview
The report covers major players operating in Challenger Banks in North America. Regarding market share, few major players currently dominate the market. The report includes an overview of challenger banks operating across the region. We are presenting detailed profiling of a few major companies, which cover product offerings, regulations governing them, their headquarters, and financial performance. Some major players dominating the market are Chime, Varo, Aspiration, MoneyLion, and Qapital.
Challenger Banks In North America Market Leaders
Chime
Varo Money
Aspiration
MoneyLion Inc
Qapital
*Disclaimer: Major Players sorted in no particular order
Challenger Banks In North America Market News
- March 2023: US challenger Varo Bank is reportedly raising USD 50 million at a USD 1.8 billion valuation, a 28% decline in value since its last fundraising. The firm was valued at USD 2.5 billion in September 2021 after raising USD 510 million in a Series E funding round led by Lone Pine Capital.
- October 2022: Aspiration launched its first credit card, the Aspiration Zero Credit Card. This new card earns cash back on every purchase but ultimately serves a much greater purpose than that.
North America Challenger Banks Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Market
4.6 Insights on Latest Trends and Technological Innovations in the Industry
5. MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Loans
5.1.2 Mobile Banking
5.1.3 Checking & Savings Account
5.1.4 Payment & Money Transfer
5.1.5 Others
5.2 By End-User Type
5.2.1 Business
5.2.2 Personal
5.3 By Country
5.3.1 USA
5.3.2 Canada
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Chime
6.2.2 Varo
6.2.3 Aspiration
6.2.4 MoneyLion
6.2.5 Qapital
6.2.6 BankMobile
6.2.7 Upgrade
6.2.8 Dave
6.2.9 Zero
6.2.10 Stash
6.2.11 Deserve
6.2.12 Current*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Challenger Banks In North America Industry Segmentation
A challenger bank is a smaller, newer bank aiming to compete directly or challenge. these traditional banks use modern financial practices. Many turned away from branch-based banking and operated solely online or through an app. The report covers an understanding and in-depth analysis of the market size and forecasts for the various segments of the challenger banks in Europe. It includes the regulatory environment, challenger banks and their business models, detailed market segmentation, and product offerings such as deposits and loans to define their financial performance indicators, current market trends, changes in market dynamics, and growth opportunities.
The challenger banks market in North America is segmented by service type, end-user type, and country. By service type, the market is sub-segmented into loans, mobile banking, checking & savings accounts, payment & money transfers, and others. By end-user type, the market is sub-segmented into business and personal, and by country, the market is sub-segmented into the USA and Canada.
The report offers market size and forecasts for the challenger banks in North America in value (USD) for all the above segments.
| By Service Type | |
| Loans | |
| Mobile Banking | |
| Checking & Savings Account | |
| Payment & Money Transfer | |
| Others |
| By End-User Type | |
| Business | |
| Personal |
| By Country | |
| USA | |
| Canada |
North America Challenger Banks Market Research FAQs
How big is the North America Challenger Banks Market?
The North America Challenger Banks Market size is expected to reach USD 10 billion in 2024 and grow at a CAGR of 9.12% to reach USD 15.47 billion by 2029.
What is the current North America Challenger Banks Market size?
In 2024, the North America Challenger Banks Market size is expected to reach USD 10 billion.
Who are the key players in North America Challenger Banks Market?
Chime, Varo Money, Aspiration, MoneyLion Inc and Qapital are the major companies operating in the North America Challenger Banks Market.
What years does this North America Challenger Banks Market cover, and what was the market size in 2023?
In 2023, the North America Challenger Banks Market size was estimated at USD 9.09 billion. The report covers the North America Challenger Banks Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the North America Challenger Banks Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Challenger Banks in North America Industry Report
Statistics for the 2024 Challenger Banks In North America market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Challenger Banks In North America analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
