Digital Banking

Discover a world brimming with innovations in the digital banking sector. Delve deep into the nuances of this rapidly evolving yet highly competitive market, pinpoint the golden opportunities, get the skills to navigate challenges, and unveil strategies to outpace the rivals.

Leap into the digital banking future today

The world where your financial needs are addressed by a single screen touch is already here. Fueled by a surge in smartphone penetration, increasing consumer preference for convenient and tech-driven financial solutions, coupled with supportive governmental regulations such as the PSD2 and the RBI Regulatory Sandbox, the digital banking industry is soaring to new heights.

Moreover, fintech has stably been an investor’s darling since its inception, and the investment increase (a leap from $33.91B in 2018 to $48.28B in 2022) shows the trend is only growing stronger. Personalized banking experience, blockchain and cryptocurrency integration, cross-border payments, etc… Opportunities are boundless but so are the challenges.

Carving a niche is challenging

Customer trust and security is key to digital banking growth: no customer loyalty, no traction. For example, Green Dot Bank—once a promising digital bank—made a mistake of misleading customers about its overdraft fees, lost their loyalty, was fined by the CFPB in 2019 and eventually bit the dust.

Balancing between rising costs and ensuring high-quality services is also challenging yet pivotal. This balance requires substantial money infusions, making the process of securing digital bank financing crucial. Thus…

An innovative idea is just a starting point

To win the race, you also need a bulletproof market entry strategy, a lucrative business model, and an impeccable fundraising game. Having attracted over $2B in funding, propelled growth of numerous startups within more than 80 verticals, including the digital banking industry, and devised 600+ effective pitch decks at Waveup, we know how to navigate you to success. Let’s check on our digital bank market research to understand the ins and outs of this promising landscape.

Digital banking saw an 8X growth since 2018 and is expected to hit almost $13T by 2032.


of users express a desire to switch to a digital bank.


is the number of potential smartphone users by 2025

1 for 7

One digital banking platform can potentially replace up to 7 traditional bank branches.


The percentage of adults using digital banking platforms globally doubled from 30% in 2010 to 60% in 2020.


In 2022, the digital banking venture capital surged to $48.28B

Key verticals are:

Leading digital banking investors

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Challenges digital bank startups tackle

Digital bank startups often grapple with building trust, ensuring regulatory compliance, and scaling operations effectively.

Regulatory battlefield

Digital bank startups must comply with various local, national, and international regulations such as GDPR or PSD2; failure to do so will cost you an arm and a leg. This happened to a German neobank N26, which was fined 4.25 million euros in 2021 and imposed severe sanctions on in Italy in 2022 for violating anti-money laundering standards. Plus, newcomers need to ensure the highest level of security to protect sensitive customer information from cyber threats. Otherwise it may cause data breaches as it happened to Monzo in 2021, a digital bank in the UK being hacked with personal data of more than 100K customers stolen.

Conquering customer trust

When it comes to money saving, people become very cautious. For banks that operate primarily or exclusively online earning customer trust can be an uphill battle.. Let’s take Revolut, for instance. Although it has faced numerous issues concerning EU regulatory breaches, fines, and delayed filing of accounts, it’s considered a key to future prosperity of Britain. Thus, many digital banks are maintaining transparency in their operations, obtaining necessary certifications, and collaborating with well-established financial institutions to gain customer trust.

Expansion hurdles

Getting the operations to scale without hitting a snag is another issue to address. The startups must find a golden middle between maintaining a high level of service and avoiding substantial rises in expenses. And investing in technology, cloud computing, for instance, is one of the possible solutions. Another one concerns adopting automated customer service such as chatbots. Sure thing, all these innovations come with a hefty price tag. Thus, the first thing startups need to learn is how to secure digital bank funding.

How we can help

Fundraising advisory

From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning digital banking pitch deck.

Due diligence and portfolio support

Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.


Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our investment consulting services for digital banking startups

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more


What makes the industry appealing for digital banking financing opportunities?

High growth potential, tech innovations, financial inclusion, and low operating costs are only a few of the crucial factors that attract bank venture capitalists. They view the digital banking industry as a fertile ground for seeding capital and harvesting robust returns.

What is the current size of the digital banking market, and its potential for future digital banking startups?

In 2022, the digital bank market comprised over $9T, and it’s expected to grow at 3.6% annually. For future digital bank startups, this signifies a potentially enormous market with room for considerable expansion and innovation within such areas as personalized banking services, blockchain and cryptocurrency services, cross-industry services, etc.

How challenging is it to secure funding for digital bank startups nowadays?

Securing funding for digital bank startups is more optimistic than challenging due to a number of factors. First, there has been significant interest from VCs in the fintech and banking sectors, as the recent money infusions show ($48.28B in 2022). Plus, there are constant government and crowdfunding initiatives that support the sector.

How long does it take to create a digital banking pitch deck and a financial model for a digital banking startup?

It usually takes us two or three weeks to create a robust digital bank financial model and comprehensive pitch deck. However, there are cases when we need up to a month to finish everything. So, it’s better to negotiate the time frames individually.

What are the key mistakes digital banking startups make in their pitch decks?

Many digital bank pitch decks lack coherent investment narratives and appealing intros. Showing only graphs, numbers, and charts to investors is not the best option, as the new ventures must attract attention rather than make them feel bored. Also, some pitch decks don’t answer two essential questions: ‘Why now?’ and ‘What’s your vision/mission?’

What are the main challenges digital banking startups face, and how are they tackling them?

Digital bank startups face various challenges, but the most important are gaining customer trust, complying with regulations and security measures, and scalability. Many digital banking companies invest in regtech and onboarding experts, develop actionable marketing strategies to communicate the value of their solution to the customers and leverage cloud computing.

How competitive is the digital banking market?

The digital banking market is exceedingly competitive, characterized by a high level of innovation, a rapid pace of market entry, and shifting customer expectations. There are numerous players in the market, ranging from startups (over 2.4K) and fintech companies to traditional banks transitioning to digital platforms. This creates a dense market environment where numerous entities are vying for the same customer base.

What services do you provide for investors who are either considering or have already invested in digital banking startups?

Our experts help investors find flourishing digital banking opportunities to capitalize on. Our service package includes comprehensive due diligence on the projects within the digital banking industry, devising a coherent, informative, and visually rich presentation, and connecting startups with the relevant VCs interested in investing in the digital banking sector.

Do you provide digital banking M&A support?

Yes, we do! We provide digital bank M&A assistance by searching for promising deals, evaluating them, and guaranteeing seamless partnerships after the deal is finished.

Do you make intros to digital banking VCs?

Of course! We assist you in establishing connections with the ideal digital banking venture capitalists. Initially, we evaluate your project based on the team structure, product, and the capital you intend to raise. Then, we steer you in collaborating with the VCs, ensuring a fruitful relationship both during and after the negotiation process.

Do you provide comprehensive digital banking market research on request?

Surely! Our experts offer tailored insights into the digital bank market. Our research includes detailed analyses of the industry, competition assessments, and a wide view of the market, all aimed at giving you a clear advantage. Using trusted data, we guide you in navigating the world of digital banking, helping you pinpoint opportunities, identify challenges, and spot current investment trends.

Which digital banking startup funding stages do you assist with?

We ensure digital banking growth and fundraising guidance to the new market entrants, steering them right from the early Pre-Seed phase through Series C and further.

Start your growth journey with us

Stepping into the digital banking landscape? We know the way. From end-to-end fundraising support to outsourced digital bank M&A guidance and growth blueprinting, Waveup will help you accelerate your journey to success. Drop us your email, and let's talk!

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