At any point of the digital transition,…
Customers are also riding the wave of new banks. The PitchBook report estimates that by 2024, 145 million people will use these apps in North America and Europe alone.
For the sake of clarity, “New Bank” is defined here as providing its own retail banking services, namely prepaid cards, debit cards, and credit cards, which will be launched after 2010 as a mobile-centric application.
Since 2017, the number of new banks in the world has tripled, from 100 to nearly 300 globally. This means that in the past three years, according to data from Exton, a consulting company that manages the global consumer banking application database, a new bank is launched somewhere in the world every five days.
However, the global new banks may finally reach a peak. The slowdown in 2020 is not just a simple “Covid effect”, but is due to the increasing saturation of new banks. In fact, since 2015, 30 new banks have been liquidated. However, the prosperity of the new bank has not completely stalled. In the face of the epidemic, more than 30 new banks were launched, including Zelf, Daylight and Chile’s Tenpo.
At the same time, there are still dozens of new players planning to go online in 2021, including Greece’s Woli and France’s Vybe. Among them, the United Kingdom is a special hotspot, with 37 new banks (accounting for one third of the total in Europe). It is now the most active new banking market in the world, thanks to its first-mover advantage and strong digital infrastructure in this field.
There may be hundreds of new banks in the world, but only a few are in a leading position. The US-based Chime tops the global valuation list with a value of $14.5 billion, while Brazil’s Nubank tops the list with the most customers, claiming to have 30 million users. At the same time, South Korea’s Kakao Bank has raised the most funds and has attracted $2.5 billion in investment to date.