Ci0hallenger banks have significantly grown its user base and pivoted into a strong position for the future , according to a reportin Trading Platforms. The data in the report indicates that seven American challenger banks cumulatively recorded a user growth of 39.28% between 2019 and 2020. Challenger bank Chime had the overall highest user growth of 25%, and in 2020 Chime users were at 10 million after growing from 8 million in 2019.
Prior to the pandemic, these banks were marketing toward a younger population but once the pandemic hit, the challenger banks became a segment of continual growth. The products offered were also attractive to new users. Instead of marketing to radius yield curves, base rates, and withdrawal rates, challenger banks focused on strong products with value at lower costs.