The first pure-play online bank Security First Network Bank (SFNB) launched in 1995, just a year after Amazon.com. But unlike ecommerce, digital-only banking was slow to catch on. The legacy players held their market share by providing digital services deemed “good enough” to retain customers loath to switch banks.

But that began changing about 6 or 7 years ago, first in the UK, then elsewhere as well-financed digital players started making inroads with consumers. There was Monzo, Revolut, Starling, Nubank, Chime, just to name a few. But we still haven’t seen a breakout small business bank, partly because of the love/hate relationship business owners have with big banks.

In the adjacent SMB lending space (see our Top 30 Digital Lender’s list), top brands such as Kabbage (now American Express), Square, Paypal, Amazon, Brex, and others have grabbed significant share. But there is not yet a place where small businesses flock to get deposit, payment, and financing needs met in a single interface. Brex was probably the closest, but it recently abandoned the SMB market to focus on larger enterprises.

So who are the best digital challenger business banks? Let’s start with our definition.

  1. Centered around deposit and debit/charge card services (eliminates Kabbage and most SMB lenders)
  2. Predominantly focused on small-business financial services (eliminates Paypal, Amazon, Block
  3. Primarily digitally delivered (rules out Wells Fargo, BofA, and the majority of traditional banks*)
  4. Founded since 1999.

For the latest table, check our Challenger Bank table


Challenger of the Month*

Mercury Bank

Startups of all sizes rely on Mercury

Introducing Mercury Vault: Protect your cash with a money market fund and up to $5M in FDIC insurance – 12x the industry standard.

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HQ: SF  |  Founded: 2017  |  Raised $136M (including $120M in 2021)  |  Valuation: $1.7 billion | Website visits: 1.6 million/month  | Employees: 790  |  Article citations: 17  |  Linkedin: 24,000 followers | Trustpilot: 3.5 (613 reviews) | iOS app: 4.8 (1,900 reviews)

Resources: Looking for digital banks, lenders, payment providers, insurance or digital accounting for small businesses? Check out our latest lists: Small Business (SMB) savings/treasury accounts (7) | SMB online lenders (33) | SMB challenger banks (15) | SMB insurers (15) | SMB charge cards/expense management (16) | Billpay & invoicing (16)| Payment processors (7) | Subscription processors (7) | SMB digital accounting/bookkeeping (21)

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



Leading Digital Small Business Banks (United States)
ranked by our FAB score (Fintech Attention Barometer**)

Rank Company FAB** Review Date Founded HQ Funding
($M)***
Visits
(Jul ’23)
1 Mercury 447 30 Aug 23 2017 SF $152 1.9 million
* Relay 89 30 Aug 23 2018 Toronto $19 390,000
2

NOVO

327 30 Aug 23 2016 NYC $296 950,000
3 BlueVine 260 30 Aug 23 2013 SF $768 760,000
4 Found 123 30 Aug 23 2019 SF $75 410,000
* Revolut NA 30 Aug 23 2015 London $1,700 10.4 million
5 Arc 101 30 Aug 23 2021 SF $181 22,000
6 Relay 89 30 Aug 23 2018 Toronto $19 390,000
7 Lili 84 30 Aug 23 2018 NYC $80 250,000
8 Slash 61 30 Aug 23 2020 SF $19 230,000
9 NorthOne 57 30 Aug 23 2016 NYC $90 95,000
10 Grasshopper 51 30 Aug 23 2016 NYC $162 80,000
11 (t) Moves 34 30 Aug 23 2020 Dover,DE $14.1 120,000
11 (t) Winden 34 30 Aug 23 2021 LA $5.3 140,000
13 Baselane 28 30 Aug 23 2020 NYC $7.9 99,000
14 Viably 24 30 Aug 23 2021 NC $21 36,000
15 ZilBank 15 30 Aug 23 2021 Dallas $0 43,000
16 Arival 11 30 Aug 23 2018 Miami FL $10.8 21,000
17 Vergo 10 30 Aug 23 2021 NYC $4.1 8,300
18 (t) Lance 5 30 Aug 23 2018 NYC $4.7 400
18 (t) Guava 5 30 Aug 23 2018 NYC $2.4 4,800

Sources: FintechLabs, Pitchbook, Crunchbase, SimilarWeb; 1 Sep 2023

*Our business model depends on revenue from referrals and sponsors. When you see a referral link in the URL, we may earn a fee when a new account is started (thanks!). This can improve visibility on our website, but does not impact the company’s 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.
***Funding is the amount invested into the company as either equity or debt.


Challenger of the Month*

Relay

SEE YOUR CASH FLOW CLEAR AS DAY

Relay is a FREE, online business banking and money management platform that helps small businesses take control of their cash flow and get crystal clear on what they’re earning, spending and saving.

HQ: Toronto  |  Founded: 2018  |  Raised $19.4M (including $15M in 2021)  |  Website visits: 390,000 (July) | Employees: 128  |  Trustpilot: 4.6 (1,000 reviews) | iOS app: 4.6 (520 reviews)

Learn more about Relay 

Apply in just 10 minutes 


Challenger SMB Banks Currently Active in the United States


1. Mercury Technologies
FAB Score = 447 (up 20 since May 2023)
HQ: San Francisco Bay Area
Founded: 2017
Partner banks: Choice Financial Group, Evolve Bank & Trust, and a network of 20 banks to hold excess deposits; Patriot Bank (IO card issuer)

Traction
– More than 100,000 customers (Techcrunch, Mar 2023)
– $50B processed in 2022, double the $23B in 2021
– Raised $152M (Crunchbase) including $120M in 2021
– Valuation: $1.7B (based on July 2021 round)
– Website visits: 1.9 million (July 2023; SimilarWeb<<<< Most website traffic
– Employees: 669 (Pitchbook), down 121 since 14 May 2023

Social
– Articles: 20 (Crunchbase)
Linkedin: 26,000 followers (664 employees, down 203)
iOS app: 4.9 (2,300 reviews, up 4,500)
Trustpilot: 3.7 (622 reviews)


 


 

2. Novo
FAB Score: 327
(up 74)
HQ: NYC
Founded: 2016

Traction
– Raised $296M including $125M in Aug 2023 and $166M in 2021 & 2022 (Crunchbase<<<<Highest funding amount
– Website visits: 950,000 (July 2023; SimilarWeb)
– Employees: 446 (Pitchbook), up 139 since May
– Integrations: Wise, Xero, Slack

Social
Linkedin: 18,000 followers (396 employees, up 19 since May)
– Articles: 131 (Crunchbase)- Industry awards: 4 (Novo)
TrustPilot: 4.3 (2,760 reviews, up 630)
iOS app: 4.8 (13,500 reviews, unchanged)


3. Bluevine
FAB Score = 260 (up 8)
HQ: San Francisco
Founded: 2013

Traction
– Raised: $769M prior to 2021 (Crunchbase)
– Valuation: $1B+ (estimate)
– Website visits: 760,000 (SimilarWeb, July 2023)
– Employees: 596 (Pitchbook), up 11 
– Articles: 121 (Crunchbase)

Social
Linkedin: 53,000 followers (586 employees, down 10)
– Trustpilot:  4.1 (7,410 reviews, up 220)


4. Found 
FAB Score = 123 (down 18)
HQ: San Francisco Bay Area
Founded: 2019 
BaaS partner: LendingClubBank

Traction:
– Raised $75.2M including $60M in Feb 2022; $12.75M in 2021 (Crunchbase)
– Website visits: 410,000 (SimilarWeb, July 2023)
– Employees: 95 (Pitchbook), up 6

Social:
Linkedin: 3,000 followers (95 employees, up 4)
Trustpilot: 1.9 (17 reviews, up 2)
iOS: 4.8 (10,600 reviews, up 2,300)

5. Arc
Fab Score = 101 (down 1)
HQ: SF
Founded: 2021
Banking services provider: Piermont Bank

Traction:
– Raised: $181M in 2022 (Crunchbase
– Website visits: 22,000 (SimilarWeb, July 2023)
– Employees: 45 (Pitchbook), unchanged

Social:
– Articles: 2 (Crunchbase)
Linkedin: 6,700 followers (94, up 29)


 


6. Relay
FAB Score: 89 (up 2)
– HQ: Toronto
– Founded: 2018
– Partner bank: Thread

Traction
– Raised $19.4M including $15M in 2021 (Crunchbase)
– Website visits: 390,000 (SimilarWeb, July 2023)
– Employees: 128 (Pitchbook), up 33

Social
Linkedin: 4,600 followers (122 employees, up 7)
TrustPilot: 4.6 (1,004 reviews, up 230)
iOS: 4.6 (517 reviews, up 153)


7. Lili
FAB Score = 84 (down 4)
HQ: NYC
Founded: 2018

Traction:
– Raised $80M including $55M in 2021 (Crunchbase)
– Website visits: 250,000 (SimilarWeb, July 2023)
– Employees: 105 (Pitchbook), unchanged

Social:
– Articles: 18 (Crunchbase)
Linkedin: 11,000 followers (218 employees, up 111 since May)
TikTok: 240,000 followers; 600,000 likes
Trustpilot: 4.7 (2,310 reviews,  up 400)


8. Slash
FAB Score = 61 (NEW)
HQ: SF
Founded: 2020

Traction: 
– Raised: $19M (Crunchbase)
– Website visits: 230,000 (Similarweb, July 2023)
– Employees: 20 (Pitchbook)

Social:
– Articles: 1 (Crunchbase)
Linkedin: 810 followers (19 employees)


9. NorthOne
FAB Score: 57 (down 1)
HQ: NYC/Toronto
Founded: 2016

Traction:
– Raised $90M including $67M in Oct 2022 (Crunchbase)
– Website visits: 95,000 (SimilarWeb, June 2023)
– Employees: 62 (Pitchbook), down 9

Social:
– Articles: 32 (Crunchbase)
Linkedin: 8,800 followers (62 employees, down 6)
TrustPilot: 3.1 (123 reviews,  up 9)
iOS app: 4.7 (2,700 reviews, unchanged)


10. Grasshopper Bank
FAB Score = 51
(up 9)
HQ: NYC
Founded: 2016

Traction:
– Raised $162M including $30M Aug 2022 (Crunchbase)
– Assets: $620 million (12/31/22), 2.1x growth year over year (source: company)
– Deposits: $550 million (12/31/22), 2.2x growth year over year
– Loans: $450 million (12/31/22), 3.6x growth year over year
– Revenues: $17 million (2022), 2.4x growth year over year
– Website visits: 80,000 (SimilarWeb, July 2023)
Employees: 101 (Pitchbook), unchanged

Social:
– Articles: 21 (Crunchbase)
Linkedin: 19,000 followers (107 employees, up 3)
Trustpilot: 3.5 (60 reviews, up 38)


11 (tie). Moves
FAB Score: 34 (NEW)
HQ: Dover, DE

Traction:
– Raised: $14.1M (Crunchbase)
– Website visits: 120,000 (Similarweb, July 2023)
– Employees: 40 (Pitchbook)

Social:
– Articles: 10 (Crunchbase)
– Linkedin: 2,200 followers (44 employees)


11 (tie). Winden
FAB Score = 34 (down 12)
HQ: LA
Founded: 2021

Traction:
– Raised: $5.3M (Crunchbase)
– Employees: 20 (Pitchbook)
– Website visits: 140,000 (SimilarWeb, July 2023)

Social:
– Articles: 2 (Crunchbase)
Linkedin: 3,800 followers (17 employees, down 3)
– Trustpilot: No reviews


13. Baselane
FAB Score: 28 (up 4)
HQ: NYC
Founded: 2020

Traction:
– Raised: $7.9M in 2021 (Crunchbase)
– Website visits: 99,000 (SimilarWeb, July 2023)
– Employees: 25 (Pitchbook)

Social:
– Articles: 5 (Crunchbase)
Linkedin: 1,500 followers (30 employees, up 4)


14. Viably
FAB Score: 24
(unchanged)
HQ: Charlotte, NC
Founded: 2016

Traction:
– Raised $21M in 2022 (Crunchbase)
– Website visits: 36,000 (SimilarWeb, July 2023)
– Employees: 33 (Pitchbook), up 4

Social:
– Articles: 1 (Crunchbase)
Linkedin: 890 followers (34 employees, up 1)
– iOS app: NA


15. Zilbank
FAB Score = 15 (down 1)
HQ: Grand Rapids, MI
Founded: 2021

Traction:
– Funding: INA (Crunchbase)
– Employees: 3 (Linkedin), down 1
– Website visits: 43,000 (SimilarWeb, July 2023)

Social:
Linkedin: 430 followers (3 employees, down 1)
– Articles: 5 (Crunchbase)


16. Arival
FAB score: 11 (NEW)
HQ: Miami, FL
Founded: 2018

Traction:
– Raised: $10.8M (Crunchbase)
– Website visits: 21,000 (Similarweb, July 2023)
– Employees: 41 (Pitchbook)

Social: 
– Articles: 4 (Crunchbase)
Linkedin: 14,000 followers (42 employees)


17. Vergo
FAB Score = 10 (down 6)
HQ: NYC
Founded: 2021

Traction:
– Raised $4.2M including $4.1M in June 2022 (Crunchbase)
– Website visits: 8,300 (SimilarWeb, July 2023)
Employees: 29 (Pitchbook)

Social:
– Articles: 3 (Crunchbase)
Linkedin: 1,200 followers (25 employees, down 4)
– Trustpilot: NA


18 (tie). Lance
FAB Score: 7 (NEW)
HQ: NYC
Founded: 2018

Traction:
– Raised: $4.7M (Crunchbase)
– Website visits: 400 (Similarweb, July 2023)
– Employees: 31 (Pitchbook)https://pitchbook.com/profiles/company/231080-68

Social: 
– Articles: 7 (Crunchbase)
Linkedin: 1,200 followers (81 employees)


18 (tie). Guava
Fab Score = 5
(unchanged)
HQ: NYC
Founded 2018
Banking services provider: Piermont Bank

Traction:
– Raised: $3.1M including $650k in Feb 2023 (Crunchbase)
– Website visits: 4,800 (SimilarWeb, July 2023)
– Employees: 10 (Pitchbook), unchanged since March

Social:
Linkedin: 1,500 followers (16 employees, up 2)
– Articles: None (Crunchbase)

 


Unlaunched or No Longer Listed

LiveOak Bank (discontinued business checking Aug 2023)
FAB Score = 45 (down 6) 
HQ: Wilmington, NC
Founded: 2008

Traction:
Raised: $152 million (Crunchbase)
Revenue (TTM): $392M (Yahoo)
Valuation: $1.4B (Public; 30 Aug 2023, up $100M since 14 July) 
Website visits: 150,000 (Similarweb, July 2023)
Employees: 886 (Pitchbook), unchanged

Social:
Articles: 3 (Crunchbase)
Linkedin: 18,000 followers (915 employees, up 9 since May)
Trustpilot: 4.2 (70 reviews, up 37)


Oxygen (removed Feb 2023, because they appear to be more focused on consumers)
FAB Score = NA

– HQ: San Francisco Bay Area
– Founded: 2018
– Raised $45M including $20M in 2023 (Crunchbase)
– Website visits: 230,000 (SimilarWeb, Jan 2023)
– Employees: 92 (Pitchbook), down 5 since March
– Articles: 22 (Crunchbase)
Linkedin: 5,700 followers (97 employees, up 2 since March)
Trustpilot: 3.3 (192 reviews)
iOS app: 4.8 (24,100 reviews)

Zifi (Zions Bank)
Pivoted to card processing provider (April 2023)
– HQ: Salt Lake City, UT
– Founded: 2022
– Raised: NA (unit of Zions Bank)
– Website visits: 24,000 (SEMrush, April 2023); 4,300 (SimilarWeb)
Linkedin: 267 followers (12 employees, up 12 since March)


Challengers Closed to New Accounts

Nearside (formerly Hatch) (removed Feb 2023)
Note: Plastiq acquired Nearside in Nov ’22 for a reported $130M and is shutting down its banking services
FAB Score = 66 (down 2)
– HQ: SF
– Founded: 2018
– Raised $73M including $58M in 2021 (Crunchbase)
– Website visits: 8,000 (SimilarWeb, April 2023)
– Employees: 57 (Pitchbook), unchanged
– Articles: 5 (Crunchbase)
Linkedin: 1,500 followers (24 employees, down 15 since March)
– TrustPilot: no reviews
iOS: 4.3 (183 reviews)


Solid (was Wise) >> pivoted to Fintech as a Service in 2021
FAB Score: NA
– HQ: SF
– Founded: 2018
– Raised $18M prior to 2021 (Crunchbase)
– Website visits: 1.9 million (Mar 2022; SEMrush)
– Employees: 126 (Pitchbook)
– Articles: 4 (Crunchbase)
Linkedin: 2,020 followers (56 employees)


Joust (acquired by ZenBusiness, 30 July 2020; currently referring customers to Radius Bank)
– Target: Freelancers
– HQ: Austin, TX
– Founded: 2017
– Raised: $11M (Crunchbase)
– Website visits: Unknown
– Employees: 18 (Pitchbook)
– Citations: 5 (Crunchbase)
– Twitter followers: 448
– Trustpilot: NA
– iOS: 4.1 (28 reviews)


Seed (Acquired by Cross River Bank currently closed to new customers)
– HQ: San Francisco Bay Area
– Founded: 2014
– Raised $5.2M (2015) (Crunchbase)
– App downloads (last 30 days): 425 (Apptopia)
– Website visits: 210 (May 2021; SEMrush)
– Number of employees: 12 (Pitchbook)
– Citations: 4 (Crunchbase)
– Twitter: 810 followers


Addendum: Other SMB/SME challenger banks around the world (not a definitive list):

UK

Germany

Australia

France

Rest of world