Category: Challenger Banks

Challenger Banks for SMBs

The first pure-play online challenger bank was Security First Network Bank. It launched in 1995 just a year after Amazon.com. Over the next 20 years, digital bank startups would gain little traction, especially in the United States. But that changed in the latter part of the 2010s and now there are more than 250 challenger banks worldwide.

But we still haven't seen a breakout small business bank (see definition below). The digital small biz lenders are grabbing share: Kabbage (now part of AmEx), Square, Paypal, Amazon, Brex and others. But there is not a place where small businesses flock to get deposit, payment, and financing services within a single interface.

There are now more than a dozen startups aggressively competing to become that spot in the United States (see Table below)

The FAB Score Ranking (Fintech Attention Barometer) is a proxy for the size of a private fintech company.

Learn MoreFAB Score*FoundedFunding $M
http://fintechlabs.com/wp-content/uploads/2021/12/Murcury-logo-square.jpg

Mercury

307SF2017$152ApplyPNG image92000012032.214000025 August 2021
http://fintechlabs.com/wp-content/uploads/2022/01/Novo-logo-square.jpg

NOVO

264NYC2016$136Apply790,00040.71200087503534.820000025 August 2021
http://fintechlabs.com/wp-content/uploads/2021/12/Northone-logo-square.jpg

NorthOne

56NYC2016$23Apply260,00021142300352.35100025 August 2021
http://fintechlabs.com/wp-content/uploads/2021/12/Relay-logo-square.jpg

Relay FI

33Toronto2018$19Apply11000019.404101601500025 August 2021
http://fintechlabs.com/wp-content/uploads/2021/12/Loli-logo-square.jpg

Lili

57NYC2018$80Apply16000080020,00025 August 2021
http://fintechlabs.com/wp-content/uploads/2022/01/Rho_Logo_Standard_RGB_Abyss.png

Rho

110NYC2018$205Apply430001154.9490025 August 2021
http://fintechlabs.com/wp-content/uploads/2021/12/Oxygen-logo-square-1.jpg

Oxygen

203SF2018$24Apply490,0001716197712,00025 August 2021
http://fintechlabs.com/wp-content/uploads/2021/12/Nearside-logo-square.jpgNearside39SF2018$7717000145INA25 August 2021
http://fintechlabs.com/wp-content/uploads/2021/12/Found-logo-square.jpgFound237SF2019$75Apply61000022 Nov 2021
http://fintechlabs.com/wp-content/uploads/2022/04/winden-logo-150x138.pngWinden28NYC2021$5.3Applywinden logo
http://fintechlabs.com/wp-content/uploads/2021/12/Grasshopper-Bank-logo-square.jpg

Grasshopper

21NYC2016$131Apply120000131.225 August 2021
http://fintechlabs.com/wp-content/uploads/2022/03/Zil-logo.pngZil11Dallas2021INAApply
http://fintechlabs.com/wp-content/uploads/2021/12/Vergo-logo-square.jpgVergoUnlaunchedNYC2021$0.1Apply1,200
http://fintechlabs.com/wp-content/uploads/2022/04/Baselane-Logo-Blue-large.pngBaseline 10NYC2020$7.9Apply

Source: FintechLabs, 3 Feb 2022 with data sourced from Crunchbase, SimilarWeb and SEMrush

*FAB SCORE:  The FAB score, Fintech Attention Barometer, is a proxy for the overall size of a private company since they typically do not release traditional metrics (# customers, deposits, AUM, etc). The score is based on VC funding, website traffic, mobile downloads, and the number of employees. It's a work in progress, so expect changes in the formula.

Definition: To qualify, challengers don't necessarily need to be regulated as a bank as long as they facilitate deposits and debit/charge cards under one UI. The company must predominantly focus on small-business financial services (for example, that eliminates Paypal, Amazon, Square) delivered entirely digitally (rules out Wells Fargo, BofA, and the majority of traditional banks). We will also include divisions of traditional FIs if they operate under a separate autonomous brand, such as BBVA's Azlo (which closed earlier this year).

FAB Score*FoundedFunding $M
http://fintechlabs.com/wp-content/uploads/2021/12/Murcury-logo-square.jpg307SF2017$152
http://fintechlabs.com/wp-content/uploads/2022/01/Novo-logo-square.jpg264NYC2016$136
http://fintechlabs.com/wp-content/uploads/2021/12/Northone-logo-square.jpg56NYC2016$23
http://fintechlabs.com/wp-content/uploads/2021/12/Relay-logo-square.jpg33Toronto2018$19
http://fintechlabs.com/wp-content/uploads/2021/12/Loli-logo-square.jpg57NYC2018$80
See Full List
FAB Score*FoundedFunding $M
Clearco logo3682015$682MToronto
Fundera Logo121201318.9NYC
Nav1802012$92Utah
Kabbage42420082500Atlanta
Capchase-logo-square2412020$470NYC
See Full List
Last Updated: August 2021
CompanyFAB Score*FoundedFunding ($M)
Ramp8002019$1,360NYC
Divvy1742016$418Utah
Rho_Logo_Standard_RGB_Abyss1122018$205NYC
Brex6492017$1,457SF
Expensify4602008$401SF
See Full List
Updated June 2021
FAB Score*FoundedFunding ($M)
2302016$881SF
1222017$520SF
802017$306Wash DC
632005$0London
392015$142SF
See Full List
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