Most digital challenger banks around the world are struggling to turn a profit, hampered by high customer acquisition costs, burdensome regulatory compliance requirements and limited revenue streams.
Boston Consulting Group (BCG) estimates that a mere 5% of over 450 global digital challenger banks were profitable in 2022. Of these 20 digital challenger banks, 11 are located in Asia-Pacific (APAC), eight are located in Europe and one is located in Latin America.
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