Challenger banks focused on improving the financial wellness of customer segments like teens, immigrants, and minorities have gained significant traction over the last year. We look at the trends shaping the space.
Segment-focused challenger banks are quickly gaining momentum.
These banks provide an alternative to traditional one-size-fits-all banking approaches by targeting groups based on demographic factors like age, gender, ethnicity, occupation, and socioeconomic status. For example, companies building financial products for kids might offer debit cards with extensive parental controls while banks catering to immigrants may have perks like no-fee international money transfers.