Fintech disruption in the banking industry

Alex Wong via Getty Images

Note from the editor

There are as many schools of thought on how to disrupt the banking space as there are disruptors.

Some fintechs may want to test the market's appetite for crypto offerings — an arena where incumbent banks may be slower to adapt.

At least one challenger is saying banks are falling short in their attempt to wean themselves off a long-held and much-maligned revenue generator, the overdraft fee.

Elsewhere, a traditional banking group is backing off of one fintech's plans for disruption. The Conference of State Bank Supervisors in January withdrew its lawsuit against the Office of the Comptroller of the Currency after the fintech Figure updated its banking charter application to include the intention to obtain deposit insurance. 

But not every attempt to disrupt banking successful. German challenger N26, for example, shuttered its U.S. operations after 2½ years trying to penetrate the market.

Others, like BM Technologies or Oportun, may find they prefer to merge their way into the banking sphere.

Banking Dive has published a number of pieces that lay out some of the challenges, successes and stumbles disruptors encounter.  

We hope you find this collection valuable to better serve your customers' needs.

Dan Ennis Senior Editor

Banks, fintechs navigate market's appetite for crypto amid pending regulatory guidance

From Bitcoin rewards to custody services for digital assets, banks and fintechs are carving out strategies and services tied to crypto as regulators seek to catch up with guidance.

• Published Nov. 22, 2021

Banks are 'missing the mark' on overdraft revamps, Dave CEO says

"Getting rid of overdraft solves part of the problem, but it also can hurt customers who are relying on those funds to get by, even though it's a very expensive credit," Dave CEO Jason Wilk said.

• Published Dec. 21, 2021

Banking group drops OCC suit after Figure updates charter application

"We still feel like the law would have come out on our side ... but we just don't want to continue to wait," the fintech's general counsel said of its decision to seek deposit insurance.

• Published Dec. 17, 2021

German challenger bank N26 to shutter US operations

• Published Nov. 18, 2021

BM Technologies to buy Seattle community bank to 'accelerate earnings power'

• Published Nov. 15, 2021

LMI lender Oportun to buy digital bank Digit in $213M cash-equity deal

• Published Nov. 16, 2021

Why Current built its core technology in-house

Curbing the need for a third-party processor helps money move faster, said CTO Trevor Marshall. "When I think of a checking account, I think of a parking lot," he said. "Current is about movement."

• Published Nov. 8, 2021

Digital bank Jiko accelerates banking-as-a-service strategy

The Jiko app is still available for consumers to download, and the company plans to keep enhancing its features, but its main use will serve as a "showroom" for Jiko's technology, its CEO said.

• Published Nov. 4, 2021

Why PayPal Ventures' Peggy Mangot thinks vertical neobanks are poised for growth

While mass-market neobanks continue to turn heads with user numbers and funding rounds, affinity neobanks are poised to experience their own market expansion soon, the executive said.

• Published Sept. 14, 2021

Inside MoneyLion's quest to become a financial 'super app'

The neobank is diversifying its revenue sources and aiming to boost engagement frequency to transcend beyond finance to "life transactions."

• Published Aug. 2, 2021

Fintech disruption in the banking industry

Disruption in the banking sphere is coming from more directions than ever in 2021. One of the six largest banks in the U.S. lost two executives to a major retailer's fintech spinoff that hasn't even launched. In this trendline, dive into the latest wave of fintechs that are disrupting the banking industry.

included in this trendline
  • How becoming a bank is paying off for LendingClub
  • Why PayPal Ventures' Peggy Mangot thinks vertical neobanks are poised for growth
  • Inside MoneyLion's quest to become a financial 'super app'
Our Trendlines go deep on the biggest trends. These special reports, produced by our team of award-winning journalists, help business leaders understand how their industries are changing.
Davide Savenije Editor-in-Chief at Industry Dive.