Digital Banks Test Banking Model on Profitability

Digital banks secured $3bn in 2019 as venture capitalists poured money into banking startups looking to upend the traditional banking model; these new entrants were able to rack up customer numbers alongside their large funding rounds but the lingering question these firms face is can they make money; Chime CEO Christ Britt believes their current business model of referral fees and interchange revenue can work when they reduce their marketing spend; will this big bet pay off or will these banks have to start looking more like the incumbents they are looking to disrupt to ensure long term survival and profits; we are still a ways off from knowing the answer to the question, though a downturn could be key proving ground as many industry analysts believe customers will come back to the incumbents when times are tough. Business Insider

  • Emily Donato

    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.