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The news: Though it already offers software-as-a-service in the US, UK digital bank Starling has its sights set on a US expansion, per PYMNTS. Our take: Starling鈥檚 multi-pronged growth strategy is in line with its biggest digital competitors. We鈥檝e recently covered multiple neobanks and fintechs pursuing or considering IPOs in the US, along with fintechs acquiring banks for licenses. But this isn't just about neobanks competing with other neobanks; it represents a direct strategic pivot by digital-native players to leverage their technology to rapidly modernize and capture customers from the traditional banking market. Such moves will inevitably intensify competitive pressure on US mid-tier and community banks, forcing them to seek fintech partnerships to avoid becoming acquisition targets themselves.

The news: Klarna is pivoting toward digital banking in the US, preparing for its IPO amid growing scrutiny of the buy now, pay later (BNPL) market. This includes launching US debit cards and expanded savings offerings, with Klarna rebranding itself as a neobank aiming for a "super app" experience. Our take: This signals a broader trend of fintechs evolving into banks, intensifying pressure on traditional financial institutions (FIs) to differentiate. FIs must clarify their niche, pursue strategic scale, and accelerate digital transformation. Despite Klarna's expansion, FIs retain a key advantage: their card-based installment plans still outperform BNPL in customer satisfaction.

The news: Klarna will offer unlimited 5G data, talk, and text for $40/month with coverage on AT&T鈥檚 network in the US, per a press release, with plans to expand this deal to the UK and Germany soon. Our take: Klarna鈥檚 ambitions to be a BNPL provider, a mobile phone service, a neobank, and most recently鈥攁ccording to CEO Sebastian Siemiatkowski鈥斺�渁 digital financial assistant,鈥� per CNBC, signals the company鈥檚 voracious appetite to be everything at once.

US financial institutions (FIs) will face low digital account growth over the next few years. But some customer groups will have higher growth potential than others, and FIs must understand how to build relationships with them.

The news: Fintech giant Chime beat Wall Street estimates in its first quarterly revenue reporting as a public company, driven by strong demand for its digital banking services, per Reuters. Our first take: Chime's impressive debut as a public company is a powerful statement about the shifting dynamics of consumer banking. For years, traditional banks have dismissed challenger banks as a fringe trend. But Chime's financial performance proves there's a huge, profitable market for digital-first financial services. In addition, Chime鈥檚 focus on short-term liquidity tools and early pay access has positioned it as a valuable financial partner, especially as consumers are faced with pressing economic concerns.

In Brazil, 63.2% of consumers use mobile banking at least once a week鈥攆ar outweighing the 49.7% of US consumers who do so, per a 2023 PYMNTS survey. Even lower-income consumers are frequent digital banking users. For example, Brazilians in the low-income bracket were more engaged with financial apps than their counterparts in the US, per PYMNTS.

Thrivent Financial for Lutherans recently converted its credit union to a digital-only bank after over a decade, aiming for greater growth and strategic flexibility beyond the limitations of its nonprofit credit union structure, as reported by American Banker. The rationale is to offer a wider range of products and reach younger consumers more effectively. This move addresses an existential threat to credit unions, whose customer base is aging. To succeed, Thrivent must implement a targeted marketing strategy to reach digital-first consumers on social media and ensure its new products meet the specific needs of younger demographics, focusing on relevant credit offerings.

Global fintech revenues increased by 21% YoY in 2024, a strong increase from 13% in the previous year, per Boston Consulting Group and QED Investor鈥檚 Global Fintech Report. Challenger banks such as Monzo, Nubank, and Resolut fueled impressive 23% revenue growth in the deposit vertical. Trading and investment fintech revenues grew 21%, and Insurance fintechs measured 40% growth. Fintechs need to drill down into key demographics like digital natives, the unbanked, and the underbanked. Scaled fintechs can also focus on merger and acquisition (M&A) opportunities.

While the segment will account for only 0.4% of US digital ad spending in 2026, this growth reflects FIs鈥� eagerness to monetize their first-party data. Click here to view our full forecast for US financial media network ad spending. Ad revenues are looking increasingly attractive to FIs:. Margins for traditional financial products are shrinking.

Our second annual study of US banking consumers reveals the key characteristics that make each generation鈥檚 customer journey unique. Banks can tailor their acquisition and retention strategies accordingly.

Our exclusive survey data reveals what鈥檚 shaping US banking consumers鈥� customer journeys today. Banks can use these five charts to identify opportunities to improve customer acquisition and retention.

US banking digital ad spending growth will rebound dramatically in 2024, but tougher times lie ahead. Understanding the nuances of consumer behavior will be essential to boosting ad impressions.

Monzo Split also helps the neobank reach new customers when users share links among friends and family, building brand awareness and potentially attracting new customers. We forecast Monzo鈥檚 bank account holders will total 5.8 million this year, growing 7.6% YoY and accounting for 12.6% of all UK digital banking users.

A growing number of startups are specializing in serving this market, including neobanks Alpian (Switzerland), Monument Bank (UK), and Onyx Private (US). Incumbents like HSBC, CIBC, and JPMorgan Chase have also launched mass affluent products. Alternative data is the key to identifying mass affluent consumers.

The service advances Block鈥檚 goal of 鈥渂anking our base鈥� and could drive Cash App adoption.

Our third annual study reveals which account opening features US consumers value most, based on our exclusive survey.鈥�

Why big banks are losing market share with younger generations: A report finds fintechs and neobanks have captured 47% of all new checking accounts opened in 2023, and that Gen Zers increasingly see them as their primary accounts.

UK-based neobanks Monzo and Revolut give banks examples to follow. Both offer a free tier and several paid ones with clear price points. Instead of being product-focused, these tiers offer an array of features that aim to simplify customers鈥� financial management, such as account aggregation and custom spending categories. Giving customers more flexibility and control ultimately benefits banks.