European Challenger Banks Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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European Challenger Banks Market Analysis
The Challenger Banks Market is poised to grow at a CAGR of 10% during the forecast period. The Europe Banking Industry is similar to the US banking landscape. The Europe banking sector is dominated by large players. However, it also showcases characteristics of a market ripe for disruption through a combination of economic, regulatory & secular trends. Following the crisis, large institutions damaged their reputations and created an environment for disruptors that are supported by innovative technology and can offer competitive banking and lending services. Covid-19 had a negative impact on challenger banks. The use of challenger banks fell by around 90%. However, the pandemic has forced more people than ever to start using digital banking applications. This strengthens the future of tech-oriented challenger banks.
The origins of Challenger Banks in the UK date back to the most recent crisis, during which large institutions engaged in questionable practices and undertook risks through complex business activities, difficult to comprehend for both regulators and consumers. UK has also led the charge across EU FinTech, as it is home to the most extensive network of established Challenger Banks in Europe. The UK has one of the most established and concentrated banking industries in Europe, with large financial institutions controlling significant market share and the market is supported by traditionally high regulatory barriers to entry.
European Challenger Banks Market Trends
This section covers the major market trends shaping the Challenger Banks in Europe Market according to our research experts:
Challenger Banks are Gaining Traction in Europe
Challenger banks are innovating their ways to reach customers. For instance, in 2018, an overhaul of the Payments Services Directive (PSD2) required banks to open their payments infrastructure and customer data assets allowing third parties to use them to develop payments and information services for consumers essentially PSD2 dissolved banks' monopoly on consumers financial data. This helped many players like N24, and Revolut to provide expanded service offerings and gain a customer base. Also, large banks entered partnerships with fintech players. These types of factors give challenger banks an advantage over other traditional banks to increase it's customer base.
Challenger Banks Offer Attractive Returns for Savers in Europe
Challenger Banks in Europe have this major proposition of better products at cheaper costs. Using the rapid technological adoption of customers and legacy systems of large players being insufficient to cater to their growing needs as an opportunity, new banks have come up with attractive products offered through online platforms at cheaper costs. The average interest rates offered for savings account holders of leading large banks in Europe are less as compared with challenger banks. The challenger Banks have done this by raising funds in recent year.
European Challenger Banks Industry Overview
The report includes an overview of challenger banks operating across the region. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players including OakNorth Bank, Revolut, Number26 GmBH, Monzo, and Tandem Bank, among others are dominating the market.
European Challenger Banks Market Leaders
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OakNorth Bank
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Revolut
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Number26 GmBH
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Monzo
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Tandem Bank
*Disclaimer: Major Players sorted in no particular order
European Challenger Banks Market News
- In October 2022, OakNorth Bank acquired a 50% stake in property lender ASK Partners. The company has lent in excess of £1bn across over 90 transactions through its online platform.
- In July 2021, Revolut, a London-based financial app that provides banking, investing, currency transfer, and other money management services, confirm a fresh USD 800 million in funding at a USD 33 billion valuation to supercharge its financial services super app.
European Challenger Banks Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porters 5 Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Service Type
- 5.1.1 Payments
- 5.1.2 Savings Products
- 5.1.3 Current Account
- 5.1.4 Consumer Credit
- 5.1.5 Loans
- 5.1.6 Others
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5.2 By End-User Type
- 5.2.1 Business Segment
- 5.2.2 Personal Segment
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5.3 By Country
- 5.3.1 UK
- 5.3.2 Germany
- 5.3.3 France
- 5.3.4 Italy
- 5.3.5 Spain
- 5.3.6 Netherlands
- 5.3.7 Rest Of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 OakNorth Bank
- 6.2.2 Revolut
- 6.2.3 Number26 GmBH
- 6.2.4 Monzo Bank Limited
- 6.2.5 Monese
- 6.2.6 Tandem Bank
- 6.2.7 Pockit
- 6.2.8 One Savings Bank
- 6.2.9 Shawbrook Bank
- 6.2.10 Aldermore
- 6.2.11 Atom Bank PLc
- 6.2.12 TSB
- 6.2.13 Clydesdale
- 6.2.14 Virgin Bank
- 6.2.15 Metro Bank
- 6.2.16 Starling Bank
- 6.2.17 Fidor Solutions AG*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
European Challenger Banks Industry Segmentation
An understanding of the Challenger Banks in Europe, regulatory environment, challengers banks, and their business models, along with detailed market segmentation, product offerings such as deposits, loans to define their financial performance indicators, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The Challenger Banks Market in Europe is segmented By services offered (Payments, Savings Products, Current Account, Consumers Credits, Loans and Others), By end-user type (Business Segment and Personal Segment) and By Geography (UK, Germany, France, Italy, Spain, Netherlands, and Rest of Europe). The report offers market size and forecasts for Challenger Banks in Europe Market in value (USD Million) for all the above segments.
| By Service Type | Payments |
| Savings Products | |
| Current Account | |
| Consumer Credit | |
| Loans | |
| Others | |
| By End-User Type | Business Segment |
| Personal Segment | |
| By Country | UK |
| Germany | |
| France | |
| Italy | |
| Spain | |
| Netherlands | |
| Rest Of Europe |
European Challenger Banks Market Research FAQs
What is the current Challenger Banks in Europe Market size?
The Challenger Banks in Europe Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in Challenger Banks in Europe Market?
OakNorth Bank, Revolut, Number26 GmBH, Monzo and Tandem Bank are the major companies operating in the Challenger Banks in Europe Market.
What years does this Challenger Banks in Europe Market cover?
The report covers the Challenger Banks in Europe Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Challenger Banks in Europe Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
European Challenger Banks Industry Report
Statistics for the 2024 European Challenger Banks market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. European Challenger Banks analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
