Market Size of Challenger Banks In North America
| 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.
