Fintech startups amass war chests for the economic downturn

Consumer fintech startups were massively successful in 2019, attracting millions of new users and disrupting traditional retail banks and financial services with mobile-first, consumer-oriented products. Despite the economic downturn in public markets and

the massive wave of cuts

at public and private companies in recent weeks, fintech startups have been raising a ton of money.

It feels like they’re all building a war chest to survive the economic winter as traditional banks continue to iterate so they can catch up and offer more user-friendly services. This is not the time to raise fees, slow down on product development or plans to acquire new users.

Nine-figure rounds

Back in January, I

looked

at challenger banks and their growth trajectories, but since then, they have managed to attract even more customers. According to the most recent figures:

• Nubank

  has 20 million customers;

• Revolut

  has 10 million users;

• Chime

  has 8 million users;

• N26

  has 5 million users;

• Monzo

  has 4 million users.

And that’s without mentioning Starling Bank, Atom Bank, Bunq, Bnext, Paysend, etc. At some point, there will be as many challenger banks as non-challenger banks — perhaps we shouldn’t call them challenger banks anymore.

Beyond these startups, trading app

Robinhood

recently reached 13 million users, international payments startup TransferWise

has 7 million customers and cryptocurrency exchange Coinbase

has 30 million users.