Challenger banks can afford to slash fees because of financial technology (Fintech) that makes it possible to perform many everyday banking functions without leaving your home or dealing face-to-face with bank representatives.
Usually, there are no physical branches. Instead, customers access accounts, manage their money and contact customer service representatives through mobile apps, online banking, phone, text messages and email.
With very low overhead costs, many challenger banks are able to offer zero monthly account fees, low-cost international money transfers, free domestic transfers and low-fee investment options.