Will the European challenger bank phenomenon catch on?


#1

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


#2

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.


#3

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:


#4

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


#5

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.


#6

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: