Traditional banking isn’t readily available to all customers.
So, a number of neobanks (AKA digital banks) are building products catered to very specific markets.
Among them: Daylight, a banking platform for LGBTQ+ people and allies that just raised $5m.
… Daylight co-founder and CEO Rob Curtis tells TechCrunch. Some lose family support when they come out, while others have additional health costs, like gender-affirming surgery or surrogacy.
Daylight will use the funding to expand its services, including a marketplace where members score discounts at businesses that support Daylight’s mission.
Market intelligence company CB Insights found that 6 European digital “challenger banks” have gained 30m+ customers and $4.2B in funding since 2014.
Meanwhile, Brazil has at least 19 neobanks, including Nubank, which raised $400m in Series G earlier this year. Others include Zippi for gig workers and ElasBank for women entrepreneurs.
But don’t let the word “niche” fool you. The old guard is taking notice: Earlier this week, US banking giant JPMorgan Chase acquired a 40% stake in Brazilian neobank C6.