Data presented by Trading Platforms indicates seven American challenger banks cumulatively recorded a user growth of 39.28%. The growth is between 2019 and 2020.
Last year the selected banks recorded 39 million users, while in 2019, the figure stood at 28 million. Chime, with the overall highest users, recorded a growth of 25% between the period. In 2020, Chime users were at 10 million after growing from 8 million in 2019.
Acorns has the second-highest user and record growth of 29.03%, where last year, the number was at 8 million, while in 2019, the facility had 6.2 million users.
Dave recorded a growth of 40%.In 2020, the bank had 7 million after growing from 5 million the previous year. Money Lion registered an increase of 50% with 6 million users in 2020, while in 2019, the number was at 4 million.
In 2019 Stash had 3.3 million users and grew by 51.51% to 5 million last year. Varo recorded 100% growth with 2 million users as of last year. Current with the least users registered a 100% growth. In 2019, the bank had 0.5 million, while last year, they grew to one million.
The research acknowledges that the pandemic had a role in the user growth. According to the research report: “Undoubtedly, COVID-19 has taken a toll on the global economy, but it powered the digital transformation of Neobanks to become one of the businesses that flourished during the pandemic. Part of the containment measure for the crisis required minimal movements, which lowered in-person banking traffic. Contamination of the currency posed another threat forcing people to turn digital platforms for transactions. The urge to embrace challenger banks was more urgent than ever as they solved the practical shortcomings of traditional banking in the wake of the health crisis.”