Top 15 U.S. Online Digital Banks for Small Businesses (SMB) March 2023

SMB Fintech Stack (Source: Canapi)

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.

*Note: We also include divisions of traditional FIs if they operate under a separate autonomous brand, such as Zions ZiFi.

For the latest table, check our Challenger Bank table. 

Challenger of the Month*

NEW: Looking for digital banks, lenders, payment providers, insurance or digital accounting for small businesses? Check out our latest lists: SMB online lenders (33) | SMB challenger banks (12) | 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 Ranking (Fintech Attention Barometer) is a proxy for the size of a private fintech company.

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Leading USA digital small business banks
ranked by our FAB score (Fintech Attention Barometer**

Rank	Company	FAB**	Reviewed	Founded	HQ	Funding ($M)***	Visits (Jan ’23)
1	Mercury	367	27 Mar 23	2017	SF	$152	1,500,000
*	Relay	59	27 Mar 23	2018	Toronto	$0	280,000
2	NOVO	233	27 Mar 23	2016	NYC	$171	790,000
3	Found	181	27 Mar 23	2019	SF	$75	700,000
*	Revolut	NA	27 Mar 23	2015	London	$1,700	8,200,000
4	Arc	100	27 Mar 23	2021	SF	$181	17,000
5	Lili	92	27 Mar 23	2018	NYC	$80	290,000
6	Relay	67	27 Mar 23	2018	Toronto	$19	280,000
7	LiveOak Bank	65	27 Mar 23	2008	Wilmington, NC	$75	170,000
8	NorthOne	55	27 Mar 23	2016	NYC	$90	86,000
9	Grasshopper	39	27 Mar 23	2016	NYC	$162	22,000
10	Baselane	28	27 Mar 23	2020	NYC	$7.9	95,000
11	Winden	26	27 Mar 23	2021	LA	$5.3	100,000
12	Viably	21	27 Mar 23	2021	NC	$21	22,000
13	Vergo	15	27 Mar 23	2021	NYC	$4.1	37,000
14	ZilBank	11	27 Mar 23	2021	Dallas	$0	26,000
15	Nophin	7	27 Mar 23	2021	NYC	$3	0
16	Guava	5	27 Mar 23	2018	NYC	$2.4	3,100

Sources: FintechLabs, Pitchbook, Crunchbase, SimilarWeb, SEMrush; 27 Mar 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*

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Challenger SMB Banks Currently Active in the United States

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1. Mercury Technologies
FAB Score = 367 (unchanged since January 2023)
– HQ: San Francisco Bay Area
– Founded: 2017
– Raised $152M (Crunchbase) including $120M in 2021
– Valuation: $1.7B (based on July 2021 round)
– Website visits: 1.5 million (Jan 2023; SimilarWeb)  <<<< Most website traffic
– Employees: 400 (Pitchbook)
– Articles: 17 (Crunchbase)
– Linkedin: 20,700 followers (796 employees)
– iOS app: 4.8 (1,400 reviews)
– Trustpilot: 3.6 (550 reviews)

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6. Relay (Sponsor)
FAB Score: 67 (down 6)
– HQ: Toronto
– Founded: 2018
– Partner bank: Thread
– Raised $19.4M including $15M in 2021 (Crunchbase)
– Website visits: 280,000 (SimilarWeb, Jan 2023)
– Employees: 96 (Pitchbook)
– Linkedin: 3,500 followers (101 employees)
– TrustPilot: 4.3 (746 reviews)
– iOS: 4.6 (328 reviews)

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2. Novo
FAB Score: 233 (down 62)
– HQ: NYC
– Founded: 2016
– Raised $171M including $166M since Jan 2021 (Crunchbase)  <<<<Highest funding amount
– App downloads (last 30 days): 5,200 (Crunchbase)
– Website visits: 790,000 (Jan 2023; SimilarWeb)
– Employees: 317 (Pitchbook)
– Articles: 117 (Crunchbase)
– Linkedin: 15,400 followers (319 employees)
– Industry awards: 4 (Novo)
– Integrations: Wise, Xero, Slack
– TrustPilot: 3.9 (1,844 reviews)
– iOS app: 4.8 (13,400 reviews)

3. Found 
FAB Score = 181 (down 30)
– HQ: San Francisco Bay Area
– Founded: 2019
– BaaS partner: LendingClubBank
– Raised $75.2M including $60M in Feb 2022; $12.75M in 2021 (Crunchbase)
– Website visits: 700,000 (SimilarWeb, Jan 2023)
– Employees: 88 (Pitchbook)
– Linkedin: 2,700 followers (89 employees)
– Trustpilot: 2.0 (15 reviews)
– iOS: 4.8 (7,400 reviews)

4. Arc
Fab Score = 100 (down 1)
– HQ: SF
– Founded: 2021
– Banking services provider: Piermont Bank
– Raised: $181M in 2022 (Crunchbase)
– Website visits: 17,000 (SimilarWeb, Jan 2023)
– Employees: 45 (Pitchbook)
– Articles: 2 (Crunchbase)
– Linkedin: 4,800 followers (51 employees)

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5. Lili
FAB Score = 92 (+2)
– HQ: NYC
– Founded: 2018
– Raised $80M including $55M in 2021 (Crunchbase)
– Website visits: 290,000 (SimilarWeb, Jan 2023)
– Employees: 105 (Pitchbook)
– Articles: 17 (Crunchbase)
– Linkedin: 9,700 followers (113 employees)
– TikTok: 240,000 followers; 600,000 likes
– Trustpilot: 4.7 (1,818 reviews)

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8. NorthOne
FAB Score: 55 (unchanged)
– HQ: NYC/Toronto
– Founded: 2016
– Raised $90M including $67M in Oct 2022 (Crunchbase)
– Website visits: 86,000 (SimilarWeb, Jan 2023)
– Employees: 77 (Pitchbook)
– Articles: 29 (Crunchbase)
– Linkedin: 8,200 followers (76 employees)
– TrustPilot: 2.5 (113 reviews)
– iOS app: 4.8 (2,700 reviews)

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9. Grasshopper Bank
FAB Score = 39 (down 1)
– HQ: NYC
– Founded: 2016
– 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: 22,000 (SimilarWeb, Jan 2023)
– Employees: 101 (Pitchbook)
– Articles: 17 (Crunchbase)
– Linkedin: 15,800 followers (104 employees)
– Trustpilot: 2 reviews

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10. Baselane
FAB Score: 28 (+3)
– HQ: NYC
– Founded: 2020
– Raised: $7.9M in 2021 (Crunchbase)
– Employees: 26 (Linkedin)
– Articles: 5 (Crunchbase)
– Website visits: 95,000 (SimilarWeb, Jan 2023)
– Linkedin: 1,300 followers (26 employees)

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11. Winden
FAB Score = 26 (down 12)
– HQ: LA
– Founded: 2021
– Raised: $5.3M (Crunchbase)
– Employees: 19 (Linkedin)
– Articles: 2 (Crunchbase)
– Website visits: 100,000 (SimilarWeb, Jan 2023)
– Linkedin: 3,100 followers (19 employees)
– Trustpilot: No reviews

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12. Viably
FAB Score: 21 (+2)
– HQ: Charlotte, NC
– Founded: 2016
– Raised $21M in 2022 (Crunchbase)
– Website visits: 22,000 (SimilarWeb, Jan 2023)
– Employees: 30 (Pitchbook)
– Articles: 1 (Crunchbase)
– Linkedin: 770 followers (30 employees)
– iOS app: NA

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13.Vergo
FAB Score = 15 (+3)
– HQ: NYC
– Founded: 2021
– Raised $4.2M including $4.1M in June 2022 (Crunchbase)
– Website visits: 37,000 (SimilarWeb, Jan 2023)
– Employees: 25 (Linkedin)
– Citations: 2 (Crunchbase)
– Linkedin: 850 followers (25 employees)
– Trustpilot: NA

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14. Zilbank
FAB Score = 11 (+1)
– HQ: Dallas, TX
– Founded: 2021
– Raised: INA (Crunchbase)
– Employees: 4 (Linkedin)
– Articles: 5 (Crunchbase)
– Website visits: 26,000 (SimilarWeb, Dec 2022)
– Linkedin: 100 followers (4 employees)

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16. Guava
Fab Score = 5 (+1)
– HQ: NYC
– Founded 2018
– Banking services provider: Piermont Bank
– Raised: $3.1M including $650k in Feb 2023 (Crunchbase)
– Website visits: 3,100 (SEMrush, Feb 2023)
– Employees: 10 (Pitchbook)
– Linkedin: 1,200 followers (15 employees)

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Unlaunched or No Longer Listed

Oxygen (removed Feb 2023, because they appear to be more focused on consumers)
FAB Score = 85 (+12)
– HQ: San Francisco Bay Area
– Founded: 2018
– Raised $45M including $20M in 2023 (Crunchbase)
– Website visits: 270,000 (SimilarWeb, Jan 2023)
– Employees: 97 (Pitchbook)
– Articles: 23 (Crunchbase)
– Linkedin: 5,600 followers (95 employees)
– Trustpilot: 2.2 (127 reviews)
– iOS app: 4.8 (23,900 reviews)

Zifi (Zions Bank)
– HQ: Salt Lake City, UT
– Founded: 2022
– Raised: NA (unit of Zions Bank)
– Website visits: INA (SEMrush, Feb 2023)
– Linkedin: 30 followers (0 employees)

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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: 160,000 (SimilarWeb, Nov 2022)
– Employees: 57 (Pitchbook)
– Articles: 5 (Crunchbase)
– Linkedin: 1,500 followers (39 employees)
– TrustPilot: no reviews
– iOS: 4.3 (183 reviews)

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Solid (was Wise) >> pivoted to Fintech as a Service in 2021
FAB Score: 386
– 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)

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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)

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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

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

UK

• Alicia Bank – Raised $147M in Nov 2021
• CountingUp
• Allca Bank — was CivilizedBank
• Redwood Bank
• Tide – Raised $195M (through Nov 2021)
• OakNorth – Raised $1B (through Nov 2021); first SMB banking unicorn

Germany

• Kontist – Raised $48 million (through Nov 2021)
• Penta – Raised $83 million (through Nov 2021)

Australia

• Judo(public)
• Volt
• Zeller – Raised A$50M in June 2021

France

• Qonto
• Shine – Serving freelancers

Rest of world

• Holvi – Finland: Acquired by BBVA March 2016
• Juni – Sweden: Serving ecommerce companies. Raised $21.5M A-round July 2021
• Tochka – Russia