• ‘Challenger' banks are on track for a record year even as business model remains uncertain

    12 days ago - By Fortune

    Big investors are backing online banks more than than ever, betting that these upstarts' low overhead and nimble technology stacks will let them keep grabbing customers from traditional financial institutions. This year, these so-called “challenger banks” have already raised a total of $4.6 billion across 101 deals-and are on pace to break the record $5.3 billion they pulled in during 2019.
    These figures, set out in new report by CB Insights , reflect in part a series of massive bets on the likes of Chime, which recently raised a $485 million Series F round that valued the online bank at...
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