Challenger bank

Challenger banks are small, recently created retail banks that compete directly with the longer-established banks in the UK,[1][2][3] sometimes by specialising in areas underserved by the "big four" banks (Barclays, HSBC, Lloyds Banking Group, and NatWest Group).[3] As well as new entrants to the market, some challenger banks were created following divestment from larger banking groups (TSB Bank from Lloyds Banking Group) or wind-down of a failed large bank (Virgin Money from Northern Rock).[4][5]

The banks distinguish themselves from the historic banks by modern financial technology practices, such as online-only operations, that avoid the costs and complexities of traditional banking.[6]

  1. ^ "Challenger bank". OxfordDictionaries.com. Oxford University Press. 2017. Archived from the original on 18 August 2017. Retrieved 18 August 2017.
  2. ^ Zhuplev, Anatoly V., ed. (2018). "Challenger Banks". Disruptive Technologies for Business Development and Strategic Advantage. IGI Global. p. 106. ISBN 9781522541493 – via Google Books.
  3. ^ a b Wallace, Tim (29 December 2015). "Are challenger banks the saviours of British banking?". The Daily Telegraph. Retrieved 18 August 2017.
  4. ^ Bowman, Andrew (2014). The End of the Experiment?: From Competition to the Foundational Economy. Manchester University Press. p. 92. ISBN 978-0-7190-9633-4 – via Google Books.
  5. ^ Moore, James (4 October 2018). "As watchdogs approve CYBG and Virgin Money's merger, should the big five banks be worried?". The Independent. Retrieved 12 March 2019.
  6. ^ Flinders, Karl (21 January 2015). "Six challenger banks using IT to shake up UK retail banking". Computer Weekly. Retrieved 13 March 2019.