3 Questions
What is the main purpose of digital challenger banks?
To provide current accounts
What has been the response of incumbent banks to digital challenger banks?
They have ignored them
What is the preference of the majority of the population when it comes to digital challenger banks?
To use them for daily spending
Study Notes
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Digital challenger banks are startups that are built on the premise of doing one thing really well, for example current accounts, with a lean infrastructure, leading with tech versus finance.
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These new banks have disrupted banking and finance like Spotify disrupted the music industry, or the birth of digital photography disrupted Kodak.
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However, incumbent banks have been slow to react and consumers are not using these banks as their primary bank.
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The preference for the majority of the population is to be multi-banked and to use these digital challengers for daily spending, monitoring and accessing deals via the marketplaces or on foreign exchange.
Test your knowledge about digital challenger banks, their impact on the financial industry, and consumer behavior. Explore how these startups have disrupted traditional banking and why consumers prefer to use them alongside incumbent banks.
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