The Growing Domination Of Chime, Cash App, And PayPal In Banking

  • “More than a quarter of Gen Zers (21 to 26 years old) and nearly a third of Millennials (27 to 41) now call a digital bank their primary checking account provider. Among Gen Xers (42 to 56), the percentage who have their primary account with a digital bank grew from 8% to 22%. Overall, six in 10 Gen Zers and Millennials whose primary checking account is with a digital bank has that account with Chime, PayPal, or Cash App.
  • Since the start of the pandemic, however, the percentage of Gen Zers whose primary checking account is with a megabank has dropped from 35% to 25%.
  • Chime is a strong neobank among Millennials, and is growing its primary customer share among Gen Xers. But its primary status among Gen Zers has slipped since 2020—from 6.5% in October 2020 to 4.6% in January 2022. PayPal and Square picked up the slack—and more—with 8% of Gen Zers now calling PayPal their primary checking account provider, and 4% applying that label to Cash App.”

Tandem founder aims to take on banking giants

  • “As one of the “challenger” banks in the United Kingdom, six-year-old Tandem provides credit cards and savings accounts to over a million customers in its home market.
  • The bank has set up various machine learning and deep learning models to generate financial analytics, which helps customers predict cash flow, upcoming bills and expenses, etc. The AI models also help the bank in tackling fraud, marketing optimization, and assessing customers’ personal credit for lending products.”