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Monzo, Revolut and N26 (backed by Peter Thiel) are all splashing down around the same time in the U.S. to vie for the Challenger/Neo-Bank crown, where they will

by spking 8y ago

Monzo, Revolut and N26 (backed by Peter Thiel) are all splashing down around the same time in the U.S. to vie for the Challenger/Neo-Bank crown, where they will compete with: -Simple/BBVA (https://www.simple.com/ https://www.simple.com/) -Varo (https://www.varomoney.com/ https://www.varomoney.com/) -Qapital (https://www.qapital.com/ https://www.qapital.com/) -Aspiration (https://www.aspiration.com/ https://www.aspiration.com/) -Empower (https://empower.me/ https://empower.me/) -MoneyLion (https://www.moneylion.com/ https://www.moneylion.com/) -Acorns (Spend) (https://www.acorns.com/spend/ https://www.acorns.com/spend/) -Chime (https://www.chimebank.com https://www.chimebank.com) -Zero (https://zero.app/ https://zero.app/) -Point (https://trypointbank.com/ https://trypointbank.com/) -Finn/Chase (https://www.chase.com/personal/finnbank https://www.chase.com/personal/finnbank) -Marcus/Goldman Sachs (https://www.marcus.com/ https://www.marcus.com/) -Greenhouse/Wells Fargo (https://www.wellsfargo.com/greenhouse/ https://www.wellsfargo.com/greenhouse/) -GoBank/Green Dot (https://www.gobank.com/ https://www.gobank.com/) -Square (Cash) (https://cash.app/ https://cash.app/) -PayPal -Apple (https://www.apple.com/apple-card/ https://www.apple.com/apple-card/) -(Maybe Amazon soon)? (edit: links)

benbristow 8y ago
In the UK there's also: - Starling Bank - https://www.starlingbank.com/ https://www.starlingbank.com/ - B / Clydesdale & Yorkshire Bank - https://www.youandb.co.uk/ https://www.youandb.co.uk/ - Monese - https://monese.com/ https://monese.com/ - Metro Bank - https://www.metrobankonline.co.uk/ https://www.metrobankonline.co.uk/ Loads more too - https://en.wikipedia.org/wiki/Challenger_bank https://en.wikipedia.org/wiki/Challenger_bank
- C1sc0cat 8y ago
  Metro seems to be having some problems
  - jasoncartwright 8y ago
    Yes. https://www.bbc.co.uk/news/amp/business-47609539 https://www.bbc.co.uk/news/amp/business-47609539
    - HenryBemis 8y ago
      Basic Basel II rules. A bank that does THAT wrong is plain untrustworthy.
  - londons_explore 8y ago
    As a customer, a bank having problems can be good for you. If they go under, the government protects all deposits, and there is a good chance you won't have to pay off any loans, or if you do, that the interest will be frozen for years till the bank is wound up.
    - C1sc0cat 8y ago
      Not always as we found out with the Icelandic banks
- ignoramous 8y ago
  In India, I expect YC backed https://razorpay.com https://razorpay.com to come up with one soon, if it hasn't already.
Antwan 8y ago
Yes, but they don't have emoji.
workrockin 8y ago
Is paypal a challenger bank or aspiring to be? AFAIK Don't think paypal offers anything more than transactions. No savings. No card.
- footpath 8y ago
  PayPal is rolling out the Venmo debit card, and they also offer reward credit cards in partnership with Synchrony Bank.
  - workrockin 8y ago
    Ahhh didn't know. Makes sense then. Thanks!
  - kevin_thibedeau 8y ago
    PayPal is not a bank in the US. Venmo is not a bank either.
- HenryBemis 8y ago
  I checked my paypal (UK) a couple of hours ago, and I was welcomed to an advertisement for a Paypal Credit Card.
samstave 8y ago
And which of these will do business with Cannabis companies? Especially without requiring account payments of ~$3,000 per month OR ~3% of your deposits (yes this is what they are charging) NorthBay Credit union in Santa Rosa, wants $3,000 per month and a litany of access rights to your financials that no other bank asks for. Other CUs are seeking 3% of the total deposits in your account asa "service fee" Fuck that.
rb808 8y ago
Plus the other 8,800 banks that exist already https://www.fdic.gov/bank/statistical/stats/2018dec/industry.pdf https://www.fdic.gov/bank/statistical/stats/2018dec/industry...
jcrben 8y ago
All those options, and I still can't find a US bank with an API.
- spking 8y ago
  Which is why Plaid, Finicity and others are doing so well. Green Dot is working on this: https://www.greendot.com/baas/ https://www.greendot.com/baas/
- Spinosaurus 8y ago
  What would you do with an API that can't already be done? I understand the hesitancy of giving a third party such as Plaid your bank credentials, however an exposed API to your bank seems to be a rather niche need. As an example, Monzo was quite outspoken about their API at first, but it has since taken a backseat, presumably because they didn't see a huge need for it.
  - jcrben 8y ago
    I use Plaid, but I'm not paying them (and not planning to) so I don't have much trust that they won't pull the rug out from me. Maybe it's niche, but the number of programmers in the world continues to grow and if there was one that would be a powerful differentiator among that audience.
    - wmajok 8y ago
      The way I see the banking api industry evolving is as follows: Currently banks have been implementing API’s because it has been mandated by regulatory bodies. From their perspectives, the APIs are a money sink, and even worse, could make their customers less reliant on their infrastructure - increasing their chances of losing customers. I see it differently, and predict that the landscape will change dramatically. Open banking APIs are going to enable a whole host of products and services - allowing customers to verify their income painlessly, or manage their investments and credit cards with minimal effort. As the ecosystem of products around open banking grows, banks will begin to see the quality of their APIs as a strength, and a way to differentiate themselves from competitors. Customers could one day choose their bank based on how well it integrates with their smart phone, or favourite online market place, etc Monzo are already capitalising on the opportunity with some very smart moves. They are using https://truelayer.com https://truelayer.com (a banking infrastructure company) to display their customers credit card’s balance and transactions within the Monzo app. Eventually users will be able to pay off their credit cards from within the Monzo app. Just imagine the possibilities! In short, there are many exciting opportunities, and early adopters could win big.
benjaminsuch 8y ago
N26 have some big troubles in germany. The BaFin (german abbr. for Federal Financial Supervisory Authority) is taking a closer look into N26 after several reports for "money disappearing" and having insufficient customer support.
- TazeTSchnitzel 8y ago
  If you want to roar with laughter for an hour, here's a wonderful talk from 2016 dissecting their horrifyingly broken security: https://www.youtube.com/watch?v=KopWe2ZpVQI https://www.youtube.com/watch?v=KopWe2ZpVQI
jqueryin 8y ago
Which ones are touting crypto-friendliness (aside from Cash already having integrated crypto into their own app)?
randomsearch 8y ago
I think it’s highly likely Monzo will be one of the winners. The leadership is strong, and customers absolutely love their product, as quantitatively measurable by their crowdfunding. Great investment for YC, who also take credit for shaping the way Monzo has been led. My only annoyance about Monzo is that I’ve been unable to invest so far. The only company that can stop Monzo now is Monzo.

by spking 8y ago

benbristow 8y ago

In the UK there's also: - Starling Bank - https://www.starlingbank.com/ https://www.starlingbank.com/ - B / Clydesdale & Yorkshire Bank - https://www.youandb.co.uk/ https://www.youandb.co.uk/ - Monese - https://monese.com/ https://monese.com/ - Metro Bank - https://www.metrobankonline.co.uk/ https://www.metrobankonline.co.uk/ Loads more too - https://en.wikipedia.org/wiki/Challenger_bank https://en.wikipedia.org/wiki/Challenger_bank

C1sc0cat 8y ago
Metro seems to be having some problems
- jasoncartwright 8y ago
  Yes. https://www.bbc.co.uk/news/amp/business-47609539 https://www.bbc.co.uk/news/amp/business-47609539
  - HenryBemis 8y ago
    Basic Basel II rules. A bank that does THAT wrong is plain untrustworthy.
- londons_explore 8y ago
  As a customer, a bank having problems can be good for you. If they go under, the government protects all deposits, and there is a good chance you won't have to pay off any loans, or if you do, that the interest will be frozen for years till the bank is wound up.
  - C1sc0cat 8y ago
    Not always as we found out with the Icelandic banks
ignoramous 8y ago
In India, I expect YC backed https://razorpay.com https://razorpay.com to come up with one soon, if it hasn't already.

Antwan 8y ago

Yes, but they don't have emoji.

workrockin 8y ago

Is paypal a challenger bank or aspiring to be? AFAIK Don't think paypal offers anything more than transactions. No savings. No card.

footpath 8y ago
PayPal is rolling out the Venmo debit card, and they also offer reward credit cards in partnership with Synchrony Bank.
- workrockin 8y ago
  Ahhh didn't know. Makes sense then. Thanks!
- kevin_thibedeau 8y ago
  PayPal is not a bank in the US. Venmo is not a bank either.
HenryBemis 8y ago
I checked my paypal (UK) a couple of hours ago, and I was welcomed to an advertisement for a Paypal Credit Card.

samstave 8y ago

And which of these will do business with Cannabis companies? Especially without requiring account payments of ~$3,000 per month OR ~3% of your deposits (yes this is what they are charging) NorthBay Credit union in Santa Rosa, wants $3,000 per month and a litany of access rights to your financials that no other bank asks for. Other CUs are seeking 3% of the total deposits in your account asa "service fee" Fuck that.

rb808 8y ago

Plus the other 8,800 banks that exist already https://www.fdic.gov/bank/statistical/stats/2018dec/industry.pdf https://www.fdic.gov/bank/statistical/stats/2018dec/industry...

jcrben 8y ago

All those options, and I still can't find a US bank with an API.

spking 8y ago
Which is why Plaid, Finicity and others are doing so well. Green Dot is working on this: https://www.greendot.com/baas/ https://www.greendot.com/baas/
Spinosaurus 8y ago
What would you do with an API that can't already be done? I understand the hesitancy of giving a third party such as Plaid your bank credentials, however an exposed API to your bank seems to be a rather niche need. As an example, Monzo was quite outspoken about their API at first, but it has since taken a backseat, presumably because they didn't see a huge need for it.
- jcrben 8y ago
  I use Plaid, but I'm not paying them (and not planning to) so I don't have much trust that they won't pull the rug out from me. Maybe it's niche, but the number of programmers in the world continues to grow and if there was one that would be a powerful differentiator among that audience.
  - wmajok 8y ago
    The way I see the banking api industry evolving is as follows: Currently banks have been implementing API’s because it has been mandated by regulatory bodies. From their perspectives, the APIs are a money sink, and even worse, could make their customers less reliant on their infrastructure - increasing their chances of losing customers. I see it differently, and predict that the landscape will change dramatically. Open banking APIs are going to enable a whole host of products and services - allowing customers to verify their income painlessly, or manage their investments and credit cards with minimal effort. As the ecosystem of products around open banking grows, banks will begin to see the quality of their APIs as a strength, and a way to differentiate themselves from competitors. Customers could one day choose their bank based on how well it integrates with their smart phone, or favourite online market place, etc Monzo are already capitalising on the opportunity with some very smart moves. They are using https://truelayer.com https://truelayer.com (a banking infrastructure company) to display their customers credit card’s balance and transactions within the Monzo app. Eventually users will be able to pay off their credit cards from within the Monzo app. Just imagine the possibilities! In short, there are many exciting opportunities, and early adopters could win big.

benjaminsuch 8y ago

N26 have some big troubles in germany. The BaFin (german abbr. for Federal Financial Supervisory Authority) is taking a closer look into N26 after several reports for "money disappearing" and having insufficient customer support.

TazeTSchnitzel 8y ago
If you want to roar with laughter for an hour, here's a wonderful talk from 2016 dissecting their horrifyingly broken security: https://www.youtube.com/watch?v=KopWe2ZpVQI https://www.youtube.com/watch?v=KopWe2ZpVQI

jqueryin 8y ago

Which ones are touting crypto-friendliness (aside from Cash already having integrated crypto into their own app)?

randomsearch 8y ago

I think it’s highly likely Monzo will be one of the winners. The leadership is strong, and customers absolutely love their product, as quantitatively measurable by their crowdfunding. Great investment for YC, who also take credit for shaping the way Monzo has been led. My only annoyance about Monzo is that I’ve been unable to invest so far. The only company that can stop Monzo now is Monzo.