Three types of challenger banks have emerged:
(1) standalone challenger banks, which are primarily FinTech companies leveraging technology and data to streamline retail banking by offering better convenience and pricing;
(2) incumbentled challenger banks, which are started within legacy banks through investment in technology and by creating new digital-only banks; and
(3) BigTech-led challenger banks, which are created through GAFA (Google, Apple, Facebook, and Amazon) and BAT (Baidu, Alibaba, and Tencent) and who can use their vast networks to acquire customers quickly as they branch out into financial services