Squid Game and the Consumer Fintech Revolution

Only about 1 in 2 Americans has any exposure to the stock market, and that exposure is stratified by income: only 15% of families in the bottom 20% of income earners hold stock, while 92% of families in the top 10% of the income distribution own stock.

The largest neobank in the U.S. is Chime, which has grown to ~13 million accounts by offering no-fee banking. Unlike many “traditional” banks, Chime makes no money through exploitative fees. (Instead, Chime makes money primarily through interchange—essentially the amount merchants have to pay Visa and Chime when they accept a credit or debit card.)

In 2021, 30 million Americans have accounts with neobanks; by 2025, this will swell to 54 million.