Funding & Valuation Challenger banks are increasingly attracting the attention of investors including VC, crowdfunding platforms etc. In fact, according to industry representatives, the funding that investors are willing to pledge significantly exceeds the needs of quality projects currently available within the sector. As a consequence, owners of highly promising projects have the comfort of picking suitable investors and are able to consider multiple commercial and non-commercial aspects when selecting the right partner. Future outlook The growth of banking challengers is still in an initial stage and the actual disruption of incumbents is very small. A closer look at Europe (EU) with the population of 430 million bankable individuals compared with 8 million customers of banking challengers indicates that less than 2 % of the target group has been penetrated so far. Nevertheless, major European challengers are already looking beyond Europe. For example, N26 is preparing for the North American rollout and Revolut is establishing a foothold in Asian markets, starting with Japan and Singapore. Considering their future expansion plans and available resources, major European challengers are likely to continue adding new customers fast and they are expected to attract at least 16 million clients by 2020 and 27 million by 2021. For more facts on bank challengers and payments industry in you might visit the website of Inteliace Research at: http://www.inteliace.com/ http://www.inteliace.com/en/00171_01_Payment_apps_and_systems_in_Europe_2019.html http://www.inteliace.com/en/00171_02_Bank_challengers_in_Europe_2019.html

1. Inteliace Research
PaymentsinPoland,2018
- Bank - Accounts
- Payments
- 24European
markets
- EMI
- Bank (sinceQ418)
- Payments
- Accounts
- FX
- 32 European
markets
- Bank
- Accounts
- Deposits
- Loans
- Payments
- The UK
- Bank - Deposits
- Loans - The UK
- Bank
- Accounts
- Deposits/loans
- Payments
- Other (marketplace)
- The UK, Ireland
- EMDAgent - Accounts
- Payments
- 33 European
markets
- Bank
- Deposits
- Loans
- Payments
- The UK
- AR*** - Payments
- Loyalty
- 27European
markets
- EMDAgent, EMI
- Accounts
- Payments
- Loyalty
- The UK
- EMDAgent, EMI - Accounts (SME)
- P2P, payments - The UK
- EMDAgent - Accounts
- Card payments - The UK
- Bank licence
application pending
- Loans (lean) - Initiallythe UK
* Or the last available valuation; ** Rough estimates – non market terms funding; *** Appointed Representative of other company , e.g. of a card issuer
Source: Corporate websites, industry press, Crunchbase, Inteliace Research 1
2,700
1,700
1,200
585
200-350**
120
78
49
31
26
23
10
N26
Revolut
Monzo
Atom
Starling
Monese
Tandem
Curve
Pockit
Tide
Loot
Fiinu
The valuationof a few bank challengers has already surpassedUS$1 billion
5.3
5.1
4.4
1.2
2.0-3.5
1.6
1.5
3.8
2.4
0.8
2.3
14.2
Valuation(postmoney)
in US$ million,as of Jan 2019*
Valuation to funding
ratio,(x times)
Focus
KeyProducts RegionsCompany
Company
type, licence
PARTIALLYESTIMATESSelectedEuropean bankchallengers/non-exhaustivelist/:Valuations

2. Inteliace Research
PaymentsinPoland,2018
Payments,FX (for
travellers)
Universalbanking,
Payments
Universal banking,
Payments
Payments
Universal banking,
Payments
Deposits,Cards,AIS
Payments,Loyalty
Payments– younger
clients
Depositsor Mortgage
Payments-
underbanked
Payments- freelancers,
soletraders
Online/Discountlending
* Or the last available figure;
Source: Corporate websites, industry press, Crunchbase, Inteliace Research 2
3.3
2.3
1.1
0.8
0.3
0.3
0.3
0.18
0.10
0.10
0.06
0.00
Revolut
N26
Monzo
Monese
Starling
Tandem
Curve
Loot
Atom
Pockit
Tide
Fiinu
Most bank challengersare valued between $150 and $1200 per single customer
515
1174
1091
150
1000
260
165
130
>5000
312
464
n/a
Numberof customers, [no common definition]
in million,as of Dec 2018*Company
SelectedEuropean bankchallengers:Customers
Currentfocus
Valuationpersinglecustomer
postmoney, in US$, as of Jan2019*
PARTIALLYESTIMATES

3. Inteliace Research
PaymentsinPoland,2018
Company
Geo
focus
C/Aaccountor
balanceholding
Cards&
payments
P2Ppayments
Deposits
/Savings
Consumer
loan,overdraft
Mortgage
Europe ✓ ✓ ✓   
Europe ✓ ✓ ✓ ✓ ✓ 
The UK ✓ ✓ ✓ ✓ ✓ 
The UK ✓ ✓ ✓ ✓ ✓ 
Europe ✓ ✓ ✓   
The UK  ✓  ✓  ✓
The UK    ✓  ✓
Europe  ✓    
Source: Corporate websites, industry press, Crunchbase, Inteliace Research 3
There are significant differences among bank challengersin terms of product
offer and coverage area
As ofJan. 2019
Functionalityofselectedchallengerbanksandfintechfirms

4. Inteliace Research
PaymentsinPoland,2018
0.2
1.0
3.1
8.1
2015 2016 2017 2018
Number ofcustomers - Top7 bankchallengersin Europe
In million
* including: Revolut, N26, Monzo, Starling, Monese,Tandem, Atom
Source: Inteliace Research
The number of clients of bank challengers has been growing rapidly recently
4

5. Inteliace Research
PaymentsinPoland,2018
Major bank challengers are currently valued at 3.7 times of funding received
1.8
6.7
Funding Valuation
* including: Revolut, N26, Monzo, Starling, Monese,Tandem, Atom
Source: Inteliace Research, Crunchbase
Funding& Valuation-Top7 * bankchallengersin Europe
In US$ billion,as of Jan. 2019
3.7x
(post money)
5