A relatively small, sometimes newer, retail bank which competes with larger, often older banks.
Often abbreviated to 'challenger'.
Challenger banks' focus is generally on retail customers.
Challenger banks would generally tend to service smaller corporate clients, if any, rather than larger ones.
In the UK, better-known challenger banks include, among others: Aldermore Bank, Charter Savings Bank, Close Brothers, Hampden & Co., Metro Bank, One Savings Bank, Paragon Bank, Sainsbury's Bank, Secure Trust Bank, Shawbrook Bank and Tesco Bank.
By the nature of the sector, new challenger banks arise with relatively greater frequency than other banks.