The first pure-play online bank, Security First Network Bank (SFNB), launched in 1995, just a year after Amazon. But unlike ecommerce, digital-only banking was slow to catch on. The legacy banks (Wells Fargo, Bank of America, et al) maintained market share by providing digital services deemed “good enough” to retain customers loath to switch banks.
But that began changing in the mid-2010s, 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 Lenders list), top brands such as Square (Block), 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.
- Centered around deposit and debit/charge card services (eliminates Bluevine and most SMB lenders)
- Core business is small-business financial services (eliminates Paypal, Amazon, Block
- Primarily digitally delivered (rules out Wells Fargo, BofA, and the majority of traditional banks*)
- Founded since 1999
Challenger of the Month*
Powerful banking. Simplified finances.
Apply in 10 minutes for business banking that transforms how you operate.
When you deposit $10K within your first 90 days, get $250 cash.
HQ: SF | Founded: 2017 | Raised $136M (including $120M in 2021) | Valuation: $1.7 billion | Website visits: 2.2 million/month | Employees: 728
Resources: Looking for digital banks, lenders, payment providers, insurance or digital accounting for small businesses? Check out our latest lists: Small Business (SMB) savings/treasury accounts (7) | SMB online lenders (33) | SMB challenger banks (15) | SMB insurers (15) | SMB charge cards/expense management (16) | Billpay & invoicing (16)| Payment processors (7) | Subscription processors (7) | SMB digital accounting/bookkeeping (21)
The FAB Score (Fintech Attention Barometer) is a proxy for the size of a private fintech company.
Leading Digital Small Business Banks (United States)
ranked by our FAB score (Fintech Attention Barometer**)
| Rank | Company | FAB** | Reviewed | Founded | HQ | Funding ($M***) | Visits (Aug’24) |
| 1 | Mercury | 424 | 5 Sep 24 | 2017 | SF | $152 | 2,000,000 |
| 2 | NOVO | 279 | 5 Sep 24 | 2016 | NYC | $296 | 710,000 |
| 3 | Relay | 186 | 5 Sep 24 | 2018 | Toronto | $52 | 820,000 |
| 4 | Found | 155 | 5 Sep 24 | 2019 | SF | $121 | 480,000 |
| 5 | Arc | 114 | 5 Sep 24 | 2021 | SF | $181 | 86,000 |
| 6 | NorthOne | 52 | 5 Sep 24 | 2016 | NYC | $90 | 69,000 |
| 9 | Lili | 50 | 5 Sep 24 | 2018 | NYC | $80 | 180,000 |
| 7 | Grasshopper | 48 | 5 Sep 24 | 2016 | NYC | $172 | 43,000 |
| 8 | Viably | 44 | 5 Sep 24 | 2021 | NC | $71 | 12,000 |
| 10 | Baselane | 43 | 5 Sep 24 | 2020 | NYC | $7.9 | 170,000 |
| 11 | Meow | 27 | 5 Sep 24 | 2021 | NYC | $27 | 37,000 |
| 12 | Slash | 22 | 5 Sep 24 | 2020 | SF | $19 | 38,000 |
| 13 | ZilBank | 11 | 5 Sep 24 | 2021 | Dallas | $0 | 25,000 |
| 14 | Winden | 10 | 5 Sep 24 | 2021 | LA | $5.3 | 7,800 |
| 15 | Arival | 7 | 5 Sep 24 | 2018 | Miami, FL | $10.8 | 5,800 |
Sources: FintechLabs, Pitchbook, Crunchbase, SimilarWeb; 5 Sep 2024
*Our business model depends on revenue from referrals and sponsors. When you see a referral link in the URL, we may earn a fee for new accounts (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 SMB Banks Currently Active in the United States
1. Mercury Technologies
FAB Score = 424 (down 40 from Aug)
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 200,000 customers (Techcrunch, May 2024)
– Current run rate of $4B in payments per month (Techcrunch, May 2024); $50B processed in 2022, double the $23B in 2021
– Raised $152M (Crunchbase) including $120M in 2021
– Valuation: $1.7B (based on July 2021 round); $1.6B based on Q3 ’23 secondary market sales
– Website visits: 2.0 million (Aug. 2024; SimilarWeb) <<<< Most website traffic
– Employees: 882 (Pitchbook), unchanged since Aug, up 154 since March, up 201 since January, up 213 since August ’23
Social
– Articles: 20 (Crunchbase)
– LinkedIn 50,000 followers (952 employees, up 58 since Aug, up 146 since May)
– iOS app: 4.9 (5,100 reviews, up 200 since Aug)
– Trustpilot: 3.5 (1,070 reviews, up 30 since Aug)
2. Novo
FAB Score: 279 (down 10)
HQ: NYC
Founded: 2016
Traction
– Raised $296M including $125M in Aug 2023, $125M in 2022, and $41M in 2021 (Crunchbase)
– Website visits: 710,000 (Aug 2024; SimilarWeb)
– Employees: 424 (Pitchbook), unchanged since June, up 16 since May, down 22 since Mar
– Integrations: Wise, Xero, Slack
Social
– LinkedIn: 32,000 followers (441 employees, up 8 since Aug, up 31 since May, up 48 since Mar)
– Articles: 266 (Crunchbase)
– Industry awards: 4 (Novo)
– Trustpilot: 4.4 (4,200, up 10 since Aug)
– iOS app: 4.8 (15,300 reviews, up 500 since Aug)
3. Relay
FAB Score: 186 (up 10)
– HQ: Toronto
– Founded: 2018
– Partner bank: Thread
Traction
– Raised $51.6 including $32M in 2024, $15M in 2021 (Crunchbase)
– Website visits: 820,000 (SimilarWeb, Aug 2024)
– Employees: 199 (Pitchbook), unchanged from July, up 47 since May, up 57 since Feb, up 71 since Nov ’23
Social
– LinkedIn: 10,000 followers (200 employees, down 15 since Aug, up 4 since June, up 26 since May)
– Trustpilot: 4.5 (1,780 reviews, up 30 since Aug)
– iOS: 4.8 (1,400 reviews, up 100 since Aug)
4. Found
FAB Score = 155 (up 4)
HQ: San Francisco Bay Area
Founded: 2019
BaaS partner: LendingClubBank
Traction:
– Raised $121M including $46M in June 2024; $60M in Feb 2022; $12.75M in 2021 (Crunchbase)
– Website visits: 480,000 (SimilarWeb, Aug 2024)
– Employees: 115 (Pitchbook), up 22 since Aug, up 20 since October ’23
Social:
– Linkedin: 5,000 followers (115 employees, up 3 since Aug, up 22 since June)
– Trustpilot: 4.5 (560 reviews, up 20 since Aug)
– iOS: 4.8 (18,900 reviews, up 500 since Aug)
5. Arc
Fab Score = 114 (down 3)
HQ: SF
Founded: 2021
Banking services provider: Piermont Bank
Traction:
– Raised: $181M in 2022 (Crunchbase)
– Website visits: 86,000 (SimilarWeb, Aug 2024)
– Employees: 45 (Pitchbook), unchanged since Nov ’23
Social:
– Articles: 2 (Crunchbase)
– LinkedIn 12,000 followers (323 employees, up 245 since Aug, up 259 since June, up 275 since Mar, up 300since Jan, up 305 since Nov ’23)
6. NorthOne
FAB Score: 52 (unchanged)
HQ: NYC/Toronto
Founded: 2016
Traction:
– Raised $90M including $67M in Oct 2022 (Crunchbase)
– Website visits: 69,000 (SimilarWeb, Aug 2024)
– Employees: 61 (Pitchbook), unchanged since May, down 1 since Mar, down 2 since Feb, down 2 since August ’23
Social:
– Articles: 33 (Crunchbase)
– LinkedIn 10,000 followers (61 employees, unchanged since Aug, down 2 since May, down 1 since Mar, down 2 since Feb, up 1 since Jan, down 1 since Nov ’23)
– Trustpilot: 4.5 (201 reviews, up 7 since Aug)
– iOS app: 4.7 (2,700 reviews, unchanged since Nov ’23)
7. Lili
FAB Score = 50 (up 8)
HQ: NYC
Founded: 2018
Traction:
– Raised $80M including $55M in 2021 (Crunchbase)
– Website visits: 180,000 (SimilarWeb, Aug 2024)
– Employees: 88 (Pitchbook), unchanged since June, down 17 since May, down 17 since Nov ’23
Social:
– Articles: 23 (Crunchbase)
– Linkedin: 14,000 followers (90 employees, down 6 since Aug, up 4 from June, up 22 since Feb, down 144 since Feb)
– TikTok: 234,000 followers; 600,000 likes (unchanged for a year)
– Trustpilot: 4.7 (3,220 reviews, up 20 since Aug)
8. Grasshopper Bank
FAB Score = 48 (down 1)
HQ: NYC
Founded: 2016
Traction:
– Raised $172M including $10M in Jan 2024, $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: 43,000 (SimilarWeb, Aug 2024)
– Employees: 119 (Pitchbook), unchanged since Feb, up 18 since August ’23
Social:
– Articles: 35 (Crunchbase)
– LinkedIn 26,000 followers (119 employees, down 2 since Aug, unchanged since June, down 5 since Mar, unchanged since Jan, up 6 since Nov ’23)
– Trustpilot: 4.0 (164 reviews, up 3 since Aug)
9. Viably
FAB Score: 44 (unchanged)
HQ: Charlotte, NC
Founded: 2016
Traction:
– Raised $71M including $50M (debt) in 2023 and $21M in 2022 (Crunchbase)
– Website visits: 12,000 (SimilarWeb, Aug 2024)
– Employees: 36 (Pitchbook), unchanged since Aug, up 2 since May, up 2 since Mar, up 5 since Feb, up 5 since Jan, up 2 since Nov ’23
Social:
– Articles: 8 (Crunchbase)
– Linkedin: 1,400 followers (38 employees, up 1 since Aug, up 3 since May, up 4 since Mar, up 7 since Jan, up 6 since Nov ’23)
– iOS app: NA
10. Baselane
FAB Score: 43 (up 4)
HQ: NYC
Founded: 2020
Traction:
– Raised: $7.9M in 2021 (Crunchbase)
– Website visits: 170,000 (SimilarWeb, July 2024)
– Employees: 41 (Pitchbook), up 5 since May, up 5 since Mar, up 10 since Feb, up 12 since Nov ’23
Social:
– Articles: 5 (Crunchbase)
– LinkedIn 2,200 followers (45 employees, up 5 since July, up 9 since June, up 12 since Jan, up 15 since Nov ’23)
11. Meow
FAB Score: 27 (down 2)
– HQ: NYC
– Founded: 2021
– Banking service providers: FirstBank, Grasshopper Bank, Third Coast Bank
Rates (APY)
Top: 5.0% Treasuries/4.80% FDIC insured (11 Dec 2023**)
Minimum Balance: none
Traction
– Raised: $27 million including $22 million in 2022 (Crunchbase)
– Employees: 27 (Pitchbook), up 2 since May, up 2 since Mar, unchanged since Nov ’23
– Website visits: 37,000 (SimilarWeb, Aug 2024)
– Linkedin: 6,900 followers
12. Slash
FAB Score = 22 (unchanged)
HQ: SF
Founded: 2020
Traction:
– Raised: $19Mn in 2023 (Crunchbase)
– Website visits: 41,000 (Similarweb, July 2024)
– Employees: 18 (Pitchbook), unchanged since Jan, down 1 since Nov ’23
Social:
– Article: 1 (Crunchbase)
– LinkedIn: 1,000 followers (21 employees, up 1 since Aug, up 4 since Jan, up 3 since Nov ’23)
13. Zilbank
FAB Score = 11 (down 3)
HQ: Grand Rapids, MI
Founded: 2021
Traction:
– Funding: INA (Crunchbase)
– Employees: 6 (Linkedin)
– Website visits: 25,000 (SimilarWeb, Aug 2024)
Social:
– LinkedIn 2,500 followers (5 employees, up 1 since July, unchanged since May, down 1 since Jan, unchanged since Nov ’23)
– Articles: 6 (Crunchbase)
14. Winden
FAB Score = 10 (unchanged)
HQ: LA
Founded: 2021
Traction:
– Raised: $5.3M in 2022 (Crunchbase)
– Employees: 20 (Pitchbook), unchanged since August
– Website visits: 7,800 (SimilarWeb, Aug 2024)
Social:
– Articles: 2 (Crunchbase)
– LinkedIn 2,000 followers (6 employees, down 3 since Aug, down 7 since May, down 8 since Mar, down 10 since Jan and Nov ’23)
– Trustpilot: No reviews
15. Arival
FAB score: 7 (unchanged)
HQ: Miami, FL
Founded: 2018
Traction:
– Raised: $10.8M including $5M in 2021 (Crunchbase)
– Website visits: 5,800 (Similarweb, July 2024)
– Employees: 40 (Pitchbook), down 4 since July, unchanged since May, down 3 since Nov ’23
Social:
– Articles: 6 (Crunchbase)
– LinkedIn 15,000 followers (47 employees, up 2 since Aug, up 3 since June, up 5 since Mar, up 7 since Feb, up 5 since Nov ’23)
Other SMB checking accounts at companies whose core business is not SMB banking
Bluevine
FAB Score = 308
HQ: San Francisco
Founded: 2013
Traction
– Raised: $769M prior to 2021 (Crunchbase)
– Valuation: $1B+ (estimate)
– Website visits: 1.1M (SimilarWeb, Aug 2024)
– Employees: 618 (Pitchbook), up 12 since May, up 34 since Mar, up 40 since Nov ’23
– Articles: 133 (Crunchbase)
Social
– LinkedIn 57,000 followers (591 employees, down 3 since Aug, down 21 since June, down 8 since Mar, down 2 since Jan, up 11 since Nov ’23)
– Trustpilot: 4.3 (8,110 reviews, up 40 since Aug)
AngelList Banking
FAB Score = 175
HQ: San Francisco
Founded: 2010
Traction
– Raised: $170M including $144M in 2022 (Crunchbase)
– Valuation $4B
– Website visits: 520,000 (SimilarWeb, June 2024)
– Articles: 1,788 (Crunchbase)
Unlaunched or No Longer Listed
Guava (pivoted to community July 2024)
Fab Score = 4 (unchanged)
HQ: NYC
Founded 2018
Banking services provider: Piermont Bank
Traction:
– Raised: $3.1M including $650k in Feb 2023 (Crunchbase)
– Website visits: 1,000 (SimilarWeb, June 2024)
– Employees: 10 (Pitchbook), unchanged since August ’23
Social:
– LinkedIn: 2,000 followers (16 employees, unchanged since Mar, up 1 since Feb, up 2 since Jan, down 1 since Nov)
– Articles: None (Crunchbase)
Moves (CLOSED May 2024)
FAB Score: 11 (down 5)
HQ: Dover, DE
Traction:
– Raised: $6.6M including $4.8M in 2022 (Crunchbase)
– Website visits: 19,000 (Similarweb, May 2024)
– Employees: 17 (Pitchbook), unchanged since Mar, down 25 since Feb, down 28 since Nov
Social:
– Articles: 10 (Crunchbase)
– Linkedin: 2,000 followers (15 employees, unchanged since May, down 1 since Mar, down 9 since Feb, down 20 from Jan, down 29 since Nov ’23)
Lance (pivoted to Sequence spend management Sep 2023)
FAB Score: 7 (NEW)
HQ: NYC
Founded: 2018
Traction:
– Raised: $4.7M (Crunchbase)
– Website visits: <5,000 (Similarweb, Sep 2023)
– Employees: 31 (Pitchbook)
Social:
– Articles: 7 (Crunchbase)
– Linkedin: 1,200 followers (81 employees)
Vergo (pivoted to spend management for construction industry Sep 2023)
FAB Score = 10 (down 6)
HQ: NYC
Founded: 2021
Traction:
– Raised $4.2M including $4.1M in June 2022 (Crunchbase)
– Website visits: less than 5,000 (SimilarWeb, Sep 2023)
– Employees: 29 (Pitchbook)
Social:
– Articles: 3 (Crunchbase)
– Linkedin: 1,300 followers (25 employees, unchanged)
– Trustpilot: NA
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
- 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
Rest of world
- Holvi – Finland: Acquired by BBVA March 2016
- Juni – Sweden: Serving ecommerce companies. Raised $21.5M A-round July 2021
- Tochka – Russia
