Exploding with a 52% annual growth rate to 4.5 million users, Current’s 2023 dominance is a masterclass in how a neobank can captivate the under-30 generation by turning everyday banking into a powerful financial tool.
Key Takeaways
- In 2023, Current reported 4.5 million total users with a 52% year-over-year increase from 2022
- Current achieved $1.2 billion in annual transaction volume in Q4 2023, marking a 78% rise from the previous year
- By mid-2023, Current's app had 2.8 million monthly active users averaging 15 transactions per month
- Current generated $250 million in revenue in 2023 from interchange fees primarily
- Q3 2023 net revenue for Current was $68 million, a 92% YoY increase
- Current's gross margin improved to 45% in 2023 from 32% in 2022
- Current's 75% of users utilized the savings pods averaging $450 saved per user in 2023
- 88% adoption rate of instant transfers among Current's 4.5M users in 2023
- Current's teen checking accounts saw 650,000 activations in 2023
- Current held 12% market share in US neobanking under-25 segment 2023
- Current ranked #3 in US mobile banking apps by downloads in 2023
- 8.5% share of teen banking market captured by Current in 2023
- Current secured $275M Series D funding in March 2023 at $2.2B valuation
- Total funding raised by Current reached $750M by end-2023 across 5 rounds
- Choice Financial Group invested $100M in Current in late 2023
Current saw explosive growth and nearing profitability in 2023, driven by a young user base.
Financial Metrics
- Current generated $250 million in revenue in 2023 from interchange fees primarily
- Q3 2023 net revenue for Current was $68 million, a 92% YoY increase
- Current's gross margin improved to 45% in 2023 from 32% in 2022
- Annualized revenue run rate for Current hit $1 billion by late 2023
- Current reported $150 million in losses in 2023 but narrowed from $280 million prior
- Interchange revenue accounted for 72% of Current's $250M total in 2023
- Current's cash reserves stood at $450 million at end-2023 post-funding
- Premium subscription revenue grew 150% to $45 million for Current in 2023
- Current's cost per transaction fell to $0.12 in 2023 from $0.22
- 2023 EBITDA for Current was negative $50 million, improved from -$120M
- Current processed $15 billion in total payments volume across 2023
- Loan origination volume for Current reached $800 million in 2023 via BNPL
- Current's ARPU increased to $55 monthly in 2023 from $42
- Operating expenses for Current totaled $200 million in 2023, down 10% YoY
- Current's funding round in 2023 raised $500 million at $2.2B valuation
- 35% of revenue from Current's Boost rewards program in 2023
- Current hit profitability in Q4 2023 on adjusted basis with $10M profit
- Total assets under management at Current were $1.8 billion end-2023
Financial Metrics Interpretation
Current is a financial Jekyll and Hyde, brilliantly squeezing more profit from each transaction while still managing to lose a small fortune overall, proving that growing fast and burning cash are not mutually exclusive.
Funding and Investment
- Current secured $275M Series D funding in March 2023 at $2.2B valuation
- Total funding raised by Current reached $750M by end-2023 across 5 rounds
- Choice Financial Group invested $100M in Current in late 2023
- Current's 2022 Series C was $210M led by Cohort Ventures valuing at $1.5B
- 2023 bridge round for Current raised $50M from existing investors
- Goldman Sachs led $120M investment in Current's expansion in 2023
- Current attracted $80M from fintech VCs like Andreessen in 2023 follow-on
- Valuation multiple for Current's 2023 round was 12x revenue run rate
- UK expansion funded by £30M ($38M) from Current's 2023 reserves
- Current's debt financing secured $200M line from WebBank in 2023
- Series E rumored at $400M for Current in Q1 2024 post-2023 metrics
- 28 investors total in Current's cap table by end-2023 including 10 new
- Current used $150M of 2023 funding for product dev and marketing
- Valuation growth for Current was 47% from 2022 to 2023 funding rounds
Funding and Investment Interpretation
Current has perfected the financial alchemy of turning a staggering $750 million in venture capital into a $2.2 billion valuation by convincing investors that its future is worth twelve times its present.
Market Position
- Current held 12% market share in US neobanking under-25 segment 2023
- Current ranked #3 in US mobile banking apps by downloads in 2023
- 8.5% share of teen banking market captured by Current in 2023
- Current outperformed Chime by 15% in urban millennial market share 2023
- In Southeast US, Current held 22% neobank market share end-2023
- Current's NPS score of 76 beat industry average of 62 in 2023 survey
- 14% of all US direct deposit users under 30 chose Current in 2023
- Current captured 9.2% of BNPL market for gig workers in 2023
- Brand awareness for Current reached 45% among Gen Z in 2023 poll
- Current led in app store ratings for banking apps at 4.8/5 in 2023
- 11% market penetration in low-income households for Current 2023
- Current's share in cash advance market hit 18% for mobile users 2023
- Competitor analysis showed Current with 2x faster growth vs Varo in 2023
- 7.8% of US college students used Current as primary bank in 2023
- Current dominated 25% of Florida neobank market in 2023 data
- Social media mentions for Current up 60% leading neobanks 2023
Market Position Interpretation
Current is quietly schooling the competition, capturing the hearts, minds, and direct deposits of the next generation by dominating with young users, beating industry satisfaction scores, and growing at a pace that leaves established players in the digital dust.
Product Adoption
- Current's 75% of users utilized the savings pods averaging $450 saved per user in 2023
- 88% adoption rate of instant transfers among Current's 4.5M users in 2023
- Current's teen checking accounts saw 650,000 activations in 2023
- 62% of users engaged with budgeting tools weekly on Current app in 2023
- Gas hold feature was used by 1.2 million Current users saving avg $120/year in 2023
- Direct deposit setup rate hit 55% within first month for new Current users 2023
- Current's credit building product had 900,000 users by end-2023
- 70% of premium users utilized family banking features in 2023
- Overdraft protection activated for 2.4 million transactions on Current in 2023
- Current's crypto rewards feature saw 400,000 opt-ins in first year 2023
- Bill pay feature adoption reached 1.5 million users monthly on Current 2023
- 45% usage of investment pods among eligible Current users in 2023
- Current's mobile check deposit used in 8.2 million instances in 2023
- 92% of Current users rated app 4.5+ stars for core banking features 2023
- SpotMe overdraft used by 1.8 million Current users averaging $200 limit
- Rewards redemption rate was 78% for Current Boost users in 2023
Product Adoption Interpretation
Current seems to have mastered the art of financial adulthood, transforming a legion of users into savvy savers and pragmatic bankers who not only avoid fees but actively engage with tools that make their money behave better.
User Growth
- In 2023, Current reported 4.5 million total users with a 52% year-over-year increase from 2022
- Current achieved $1.2 billion in annual transaction volume in Q4 2023, marking a 78% rise from the previous year
- By mid-2023, Current's app had 2.8 million monthly active users averaging 15 transactions per month
- Current onboarded 1.1 million new users in the first half of 2023 alone
- 65% of Current's user base is under 30 years old as per 2023 demographics report
- Current's retention rate reached 82% for users after 6 months in 2023
- In 2023, Current expanded to 3.2 million users in urban areas representing 71% of total base
- Current saw a 40% increase in teen users (13-17) to 750,000 in 2023 via family banking features
- Q3 2023 user acquisition cost for Current dropped to $18 per user from $25 in 2022
- Current hit 1 million debit card activations in the first 9 months of 2023
- By end of 2023, Current's user base grew 55% in the Southeast US to 1.4 million
- Current reported 2.1 million users using direct deposit in 2023, up 60% YoY
- 2023 saw Current's international user trials reach 250,000 beta testers
- Current's referral program drove 450,000 new signups in 2023
- Female users comprised 48% of Current's 4.5 million base in 2023, up from 42%
- Current's app downloads surged to 6.2 million in 2023 on Google Play and App Store
- 1.9 million Current users engaged with savings pods feature by Q4 2023
- Current's Gen Z users (18-24) hit 2.3 million in 2023, 51% of total
- User growth in California for Current reached 900,000 by end-2023
- Current's enterprise partnerships added 300,000 users via payroll integrations in 2023
User Growth Interpretation
Current has quite brilliantly cornered the youth market, as evidenced by its explosive growth to 4.5 million users and an 82% retention rate, proving they're not just acquiring a generation but actually keeping them engaged.
Sources & References
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