Fueled by the growth of plug-and-play banking infrastructure, startup niche banks have emerged that cater to a varied assortment of segments, including specific nationalities and genders, income and age stratifications, occupations and hobbies and even personal values.

The majority of these start-ups have a licensed sponsor bank as well as a digital banking offering specific products that consumers (or businesses) can't get elsewhere. The challenge is how to differentiate, achieve scale, fund marketing and acquisition and build loyalty beyond the debit card.

My guest on the Banking Transformed podcast is Alex Johnson, founder of Fintech Takes. We discuss the future of niche financial institutions where funding has become more difficult and scalability continues to be elusive.

This episode of Banking Transformed is sponsored by Microsoft:

See how Microsoft can help to unlock new opportunities at speed through innovative business models, deliver differentiated customer experiences across channels, products and services, and redefine new ways of working.

More at Microsoft.com/financialservices