In November, Tom Loverro of RRE Ventures wrote that “banks are under attack” and showed a few of the major players leading this trend. Inspired by his post and Alexander Pease’s, in May 2015 we dug in to see how banks are being unbundled by startups and made the first “unbundling of a bank” graphic.
We have now (11/18/15) updated the graphic and added over 30 new companies, while leaving on a few notable startups that have gone public such as Square, OnDeck Capital, and Lending Club.
The graphic below details companies attacking bank services ranging from robo-advisers wealth management services like Wealthfront and Betterment to small business loan companies like Prosper and Kabbage to small business service providers like Zenefits and Gusto, and many other areas.
As we detailed in our analysis of the startups disrupting FedEx, these emerging companies attacking Wells Fargo, Bank of America, Citi and banking more generally are not attacking them head on across multiple products. Instead, they’re attacking individual services & products (hence the term “unbundling”). Said another way, are banks going to be out-innovated and lose their edge not because of their incumbent, large competitors, but because emerging startups inflict upon them a death by a thousand cuts?
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While many international players are also unbundling banks, this infographic focuses on US-based companies. We’ll separately analyze the international players going after banks. Leave a comment if you feel that there are any companies that should be added.
