There has been a strong growth of challenger banks in recent years. Despite their strong growth, however, their revenue and profitability are lagging behind.
We have benchmarked some of the leading international players on their propositions and financial results. We observe negative profitability across the board, losing money for every customer they serve.
For example, Monzo takes the bottom rank of our sample with a total loss of $ 58 mln, equal to $ 18.71 per customers. The other players such as Revolut, N26 and Nubank show a similar picture. Overall, a less-active customer base combined with a limited product portfolio at lower margins, leaves the challengers with low income per customer and often negative profitability
