Will the European challenger bank phenomenon catch on?


There’s no denying they’ve tapped our market… but will the likes of Revolut really take to the US with as much ease?


With the US federal laws, and such an oversaturated financial services market I doubt they will be able to move to the US with much ease - but I’d love to see them give it a good go. It would be interesting to see how the legacy banks would react in the US, and indeed, if the only takers would be the San Fran techies.


They still use cheques… enough said… (well they did 4 years ago when I lived there). I thought that was extremely backward at the time. I think the US is very slow on the uptake of new technologies when it comes to banking. I imagine their booming service industry has also encouraged this, as cash is king for a lot of people!

Maybe they’re ready for revolut… it will be a hard one to crack. :confused:


Crazy that Monzo’s CPA is around £50. I had no idea!


From my reading, their CPA would be higher than ÂŁ50. Looks like the article suggests they are losing that amount per customer they acquire, which I think would take in to account the revenue they make off that customer. It will be a long play for scale though for these challenger banks as that is where their models should become really interesting.


Not any more, slowly but surely they’re bringing the cost per user down & their customer acquisition cost is very low-

thanks to their success in growing via word of mouth.

As long as the challengers can get hold of US banking licenses, I believe there’s big a opportunity for them - they’ll be able to leverage their much lower cost base there too. Although it’ll be interesting to see whether they have to change their proposition much to suit the market. I was chatting with someone from N26 recently who told me that they believe that they have to launch with a credit card because of user’s addiction to rewards :man_shrugging: