Traditional banks are under attack from a number of emerging specialist startups.
In November 2014, Tom Loverro of RRE Ventures first wrote that “Banks are under attack” and showed a few of the major players leading this trend.
Inspired by his post, back in May 2015 we dug in to see how banks are being unbundled by startups and made our first “Unbundling the bank” graphic.
We updated it in November 2015 and now updated the graphic and added over 50 new companies, while taking out a few notable startups that have gone public, such as Square, OnDeck Capital, and Lending Club, or been acquired, such as Future Advisor.
As we’ve previously detailed in analyses of startups unbundling Procter &Gamble, unbundling the car, or even unbundling PetSmart, emerging companies generally don’t attack incumbent players head-on, but rather focus on tackling specific verticals.
Said another way, might banks like Wells Fargo, Bank of America, and Citi lose their competitive edge not to large, entrenched competitors, but because emerging startups inflict upon them a death by a thousand cuts?
The graphic below details companies attacking bank services ranging from robo-advisor wealth management services like Wealthfront and Betterment; small business loan companies like Prosper and Kabbage; personal loan startups like LendUp and Oportun; apps that offer new models for banking like Moven and Digit; and many more.