America’s biggest banks are used by hundreds of millions of people. A digital startup bank is hoping to challenge these incumbents by scooping up the next generation of customers before the titans can get to them.
Four-year-old Current has a long way to go before it catches up to, say, Citigroup, but the demographics of its customer base have attracted venture capitalists’ attention. The average age of the New York-based bank’s users is 27, and about 50% of its customers are in their teens. By comparison, the average age of customers using traditional banks is around 53.
“We really drop off after age 35,” said Stuart Sopp, 42, the company’s CEO and founder. “If you’re a Gen X like me, you’re not downloading our app. You’ve already made your banking choice.” Current has about 450,000 open accounts since it went live two years ago, and its founder says it’s growing 50% from one quarter to the next.