Top 20 Neobanks of 2020

Top 20 Neobanks of 2020

by January 5, 2021
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Fintech intelligence startup WhiteSight has released its selection of 2020’s top 20 neobanks based on growth and valuation.

The list features 20 independent digital banking companies from Europe as well as North and South America which made notable strides last year, continued to expand their customer base, and launched new products and services.

Top 20 most valuable neobanks

Out of the 20 most valuable neobanks, eight are from the US, making it the most represented country in the list. The US is followed by the UK with five and Brazil with three. Other countries featured include Germany, Australia and Argentina.

The list doesn’t include any Asia digital banks like Alibaba-backed MYbank, which was valued at US$3.7 billion as of July 2019, Tencent’s WeBank with a valuation of US$21 billion as of late-2018, or Hong Kong fintech unicorn and digital bank operator WeLab.

Chime (USA)

Valuation: US$14.5 billion

Chime, from the USA, was ranked the most valued neobank of 2020 at US$14.5 billion. Chime provides fee-free financial services through a mobile app, including checking accounts with no minimum balance, an automated savings feature, and early wage access. It has 10 million account holders.

NuBank (Brazil)

Valuation: US$10 billion

NuBank is a Brazilian neobank and the largest fintech in Latin America valued at US$10 billion. Among the company’s products are NuConta, a digital account and an international credit card, both without fees, as well as personal loans. NuBank had more than 30 million customers across Brazil and Mexico as of September 2020.

Tinkoff (Russia)

Valuation: US$6.5 billion

Tinkoff is a Russian digital bank that serves 12 million customers. The Tinkoff financial ecosystem offers a full range of financial and lifestyle services for individuals and businesses via its mobile app and web interface, including daily banking services, savings and investments, real estate, family banking, insurance, and more. Tinkoff is part of the London-listed TCS Group Holding which currently has a market capitalization of US$6.5 billion.

Revolut (UK)

Valuation: US$5.5 billion

Fintech Unicorn Europe - Revolut

Revolut is a British fintech company headquartered in London that offers banking services, including GBP and EUR bank accounts, debit cards, fee-free currency exchange, stock trading, cryptocurrency exchange and peer-to-peer payments. Revolut was valued at about US$5.5 billion as of February 2020 making it the UK’s most valuable fintech startup.

Social Finance (SoFi) (USA)

Valuation: US$4.8 billion

Social Finance (SoFi) is the developer of a digital financial lending platform intended to offer various refinancing loans. The company’s platform includes online banking, personal, mortgage and wealth management through its online cash management account with guidance from professional experts. SoFi is valued at US$4.8 billion, according to CB Insights, and counted 7.5 million registered users as of May 2019.

N26 (Germany)

Valuation: US$3.5 billion

N26 is a German neobank currently offering its services throughout various member states of the Single Euro Payments Area (SEPA) and in the US. N26 provides a free basic current account and a debit Mastercard card to all its customers, as well as a Maestro card for customers in certain markets. Additionally, customers can request overdraft and investment products. N26 was valued at US$3.5 billion as of May 2020. It serves more than 5 million customers.

OakNorth (UK)

Valuation: US$2.8 billion

OakNorth is a UK bank for small and medium-sized companies (SMEs) that provides business and property loans. At the end of 2019, it had 144,000 savings customers and had lent several billion pounds to British businesses. OakNorth was valued at US$2.8 billion as of February 2019.

C6 Bank (Brazil)

Valuation: US$2.2 billion

C6 Bank is a Brazilian neobank that offers a range of international and local banking products including a mobile-centric account, no-fee credit cards and a toll tag, as well as various investment products. As of December 2020, C6 Bank was worth about US$2.2 billion and counted 4 million customers.

Monzo (UK)

Valuation: US$1.6 billion

Monzo is an online bank based in the UK. The company’s application uses smartphone technology to update balances instantly, give intelligent notifications and track day-to-day financial transactions without any usage fees. Monzo’s valuation fell to GBP 1.24 billion (US$1.6 billion) in 2020 from GBP 2 billion the previous year. The company had close to 5 million customers as of December 2020.

Atom Bank (UK)

Valuation: US$1.3 billion

Atom Bank is a mobile-only bank that allows customers to open accounts using a mobile application, giving them access to their financial information and the ability to take advantage of a range of tools. As of 2019, Atom Bank had about 67K customers and was valued at US$1.3 billion, according to WhiteSight.

Judo Bank (Australia)

Valuation: US$1.2 billion

Judo Bank is an Australian challenger Bank focused on SME lending. It offers business loans, credit, and equipment loans, as well as renders financing and leasing services, serving some 10,000 customers as of May 2020. Judo Bank was valued at about US$1.2 billion, as of December 2020.

Neon (Brazil)

Valuation: US$1 billion

Neon is a Brazil neobank that offers credit cards, personal loans and investment products, among other services. Neon is valued at about US$1 billion, according to WhiteSight, and claims more than 9 million customers.

Dave (USA)

Valuation: US$1 billion

Dave is a digital banking service that provides loans to individuals’ accounts at their banks for overdraft protection. The company doesn’t charge overdraft fees, instead charging US$1 a month to use the app and giving the option to “tip” after getting a loan. Dave is worth US$1 billion, according to CB Insights, and counted 7 million users as of July 2020.

Upgrade (USA)

Valuation: US$1 billion

Upgrade is a neobank that offers affordable and responsible credit to mainstream consumers through personal loans and cards, together with credit monitoring and education tools. Upgrade was worth about US$1 billion as of June 2020. The company claims that over 10 million people have applied for an Upgrade card or loan so far.

Varo Money (USA)

Valuation: US$1 billion

Varo Money is a financial platform providing various services including financial insights and analysis of spending, real-time budgeting and predictive forecasts of cash flow, making a direct deposit, online bill payment and also offers access to other financial applications. Varo Money served 2 million accounts as of June 2020 and is valued at US$1 billion, according to WhiteSight.

Uala (Argentina)

Valuation: US$0.9 billion

Uala is a personal financial management mobile app developed in Argentina linked to a Mastercard prepaid card that allows users to conduct financial transactions, such as transferring money and making payments and purchases, both in Argentina and abroad. As of November 2019, Uala was valued at around US$900 million. According to WhiteSight, Uala serves 2 million customers.

MoneyLion (USA)

Valuation: US$0.9 billion

MoneyLion is a mobile personal finance platform that provides products for borrowing, saving, and investing, as well as a built-in system of rewards, points, and incentives. As of July 2019, MoneyLion was valued at nearly US$1 billion. The company serves about 6 million customers.

Starling Bank (UK)

Valuation: US$0.8 billion

Starling Bank is a digital challenger bank based in the UK focused on current and business account products. It claims more than 2 million customer accounts. According to WhiteSight, Starling Bank is valued at US$800 million.

Current (USA)

Valuation: US$0.75 billion

Current provides banking services without overdraft fees, minimum balance requirements, or hidden fees. It offers a free basic checking account as well as a premium checking account. Current had a valuation of US$750 million of as November 2020. It serves more than 2 million customers.

Aspiration (USA)

Valuation: US$0.6 billion

Aspiration is a provider of socially-conscious, sustainable banking services, and investment platform intended to serve financial advisory to Americans. As of May 2020, 1.5 million Americans had signed up to use Aspiration’s financial management and banking services. According to WhiteSight, Aspiration is valued at US$600 million.

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