Current surpasses 1 million accounts, propelled by lower-wage earners - Business Insider

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If Current meets its expectations of continued growth at a rapid trajectory, it could pose a threat to more established neobanks

. Current was founded in 2015 and rolled out its fee-free checking account — which has no minimum balance requirement, and offers early paycheck access and a $100 overdraft cushion — in early 2019. It generates revenue through a premium subscription offering as well as its debit card; the neobank said its users spend $1,100 per month on average.CEO Stuart Sopp attributes Current's rapid growth during the coronavirus pandemic to adoption among essential workers.

The account likely also stood out to consumers in this segment due to its lack of fees and early paycheck access, both of which are valuable amid the current economic downturn. And the need for accessible digital banking options was further during the height of the pandemic when US bank branches were largely closed, forcing consumers to lean more heavily on alternative channels — Current's all-digital offering fits that bill.

Given its rapid growth during the pandemic, Current anticipates doubling in size this year, which would establish it as a threat to better-known players in the space. Many of Current's features mirror those of other leading US neobanks, Chime and Varo. And while currently smaller than those players, Current appears to be building a customer base at a faster clip: It took Varo, for example, four years after its 2015 launch to the 1 million customer mark, though it's now nearing 2 million accounts. If Current's growth trajectory continues as expected, it will establish itself as a significant player and disrupt the current power balance in the US neobank space.

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