Fintech disruption in the banking industry

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Note from the editor

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

Can a company be an all-in-one destination with lending, investing, buy-now-pay-later and crypto options? MoneyLion wants to find out with its "super app."

Can a fintech buy its way further onto consumers' radar? Square is testing that with its acquisition of BNPL pioneer Afterpay.

What about specialization? A PayPal executive spotlights her theory that vertical neobanks — those that serve a niche deeply — can go as far as their value proposition takes them. 

Banking Dive has published a number of pieces that lay out some of the challenges and successes disruptors are facing. We delve into why becoming a bank is paying off for LendingClub. We highlight the race toward innovation banks and fintechs are seeing in cross-border business payments. And we look inside neobanks Dave and HMBradley to show how the former is aiming to retain talent during the COVID-19 pandemic, and what the latter has had to do when demand simply got too high. 

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

Dan Ennis Editor

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

How Square's Afterpay deal plays into its SMB, consumer banking goals

The $29 billion deal will bring the Australian firm’s point-of-sale financing technology and large merchant portfolio under Square’s umbrella, further enabling the fintech to push into banking.

• Published Aug. 18, 2021

Neobank HMBradley shifts to invite-only, seeks more partner banks

The fintech has accepted more than $400 million in deposits since its 2019 launch and has seen a 300% increase in deposits since January, leading its partner to pump the brakes, its CEO said.

• Published July 22, 2021

Neobank Dave shifts to virtual-first model, implements national pay scale

"I think the silver lining of the pandemic is that it really forced companies to listen to what their team members want, maybe more so than they have in the past," said executive Shannon Sullivan.

• Published Aug. 3, 2021

Why becoming a bank is paying off for LendingClub

With its 2020 deal to acquire Radius Bank, LendingClub gained a banking charter — and also a means to cut costs, grow revenue and position itself to offer tailored products.

• Published Sept. 30, 2021

Fintechs attack cross-border business payments as banks, legacy players rush to innovate

Nonbanks are gaining ground, mainly with small-company customers, but target larger ones, even as competition gives way to symbiotic "coopetition" with banks.

• Published May 26, 2021

Fintech veteran gears neobank Nerve toward musicians

Kasasa executive John Waupsh decided to launch Nerve after noticing musicians, struggling to access business accounts, often rely on personal checking accounts for business deposits and expenses.

• Published Aug. 25, 2021

Neobank Better Financial aims to cushion financial shocks for gig workers

The startup uses account holders' current payroll data and past payroll history to underwrite low-interest emergency loans.

• Published June 17, 2021

Bank regulators issue guidance on partnering with fintechs

• Published Aug. 30, 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
  • Goldman loses 4 executives in 3 days as Walmart fintech poaches Marcus chief
  • Neobank Lance targets gig economy's income volatility
  • 'We cannot stay still': Inside Green Dot's path to BaaS growth
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.