NEW YORK (Reuters) – When London-based Revolut opens its virtual doors in America this year, it will be the latest European digital bank to challenge incumbent U.S. lending giants after forays by Monzo and N26, but the challenges it faces have not diminished. Smartphone with Revolut logo is placed on the U.S. dollar banknotes in this illustration taken February 4, 2020. REUTERS/Dado Ruvic/Illustration While the start-ups are experiencing fast growth at home, a crowded market, complex regulatory environment and different customer needs make it hard to stand out in the United States, financial-technology executives, investors and analysts say. Revolut and its rivals have amassed millions of customers and billion-dollar valuations in Europe by offering cheap, user-friendly alternatives to traditional banking services. Branchless, but armed with slick apps, they’re particularly popular with younger customers. In theory, there should be rich pickings in the U.S. where banks often have minimum deposit requirements and hefty overdraft fees, and where there are fewer free ATMs. But customers of the country’s roughly 4,500 FDIC-insured commercial banks are far more dependent on credit than in Europe, with a fondness for racking up credit card loyalty points and individual store cards. “(The newcomers’) product offering and key… Read full this story
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