Are new banks or challenger banks “real” banks?
“Challenger” is generally used to refer to challenging the market power of traditional banks. Not all challenger banks or new banks are actually banks. According to Canadian regulations, challengers and online banking apps need a full banking license to use the term “bank” in company branding and marketing materials.
Tangerine and EQ Bank are chartered (licensed) digital banks that offer a suite of everyday banking products. But apps like Mint and KOHO offer a narrower range of products that target more specific financial needs. Such apps compliment—but aren’t necessarily a substitute for—the institutions you use for everyday banking. Jump to our list of Challenger Banks for more.