Digital Banks are Now a Real Threat to Incumbents

According to a new survey by Cornerstone Advisors 6 percent of U.S. adults with a checking account consider a digital bank to be their primary bank; this is a 67 percent increase since January 2020 and more than 14 million Americans; Chime leads the way with 4.3 million customers and Dave followed with 2.9 million customers; Chime is now a top 10 bank based on number of consumers who consider them a primary bank; when widening the numbers to including additional bank accounts Cornerstone found 15 percent of Americans are banking with digital banks in some capacity; digital banks are gaining ground at the expense of community banks and credit unions, big banks are still in a dominant position overall; digital only banks are benefiting the most when it comes to the current crisis, but the good times are not guaranteed by any measure; the core customer of a digital bank tends to be younger, which means less money in accounts and more unemployment; digital banking is the way forward and for the first time incumbents of all sizes need to take digital startups more seriously than ever before. Forbes.

Todd is the Chief Product Officer of LendIt Fintech.

He is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists.

He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences.

He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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