Funding & Valuation
Challenger banks are increasingly attracting the attention of investors including VC, crowdfunding platforms etc. In fact, according to industry representatives, the funding that investors are willing to pledge significantly exceeds the needs of quality projects currently available within the sector. As a consequence, owners of highly promising projects have the comfort of picking suitable investors and are able to consider multiple commercial and non-commercial aspects when selecting the right partner.
The growth of banking challengers is still in an initial stage and the actual disruption of incumbents is very small. A closer look at Europe (EU) with the population of 430 million bankable individuals compared with 8 million customers of banking challengers indicates that less than 2 % of the target group has been penetrated so far.
Nevertheless, major European challengers are already looking beyond Europe. For example, N26 is preparing for the North American rollout and Revolut is establishing a foothold in Asian markets, starting with Japan and Singapore.
Considering their future expansion plans and available resources, major European challengers are likely to continue adding new customers fast and they are expected to attract at least 16 million clients by 2020 and 27 million by 2021.
For more facts on bank challengers and payments industry in you might visit the website of Inteliace Research at: http://www.inteliace.com/