Challenger banks were already experiencing issues before COVID-19. The economic downturn that follows will force many of them to shut down. Digital banks have few exit options as a result of the COVID-19 crisis: pivot, sell, or fold. A small number of digital banks will capitalize on their digital DNA to innovate further around customers’ financial needs. A handful of digital banks strive to differentiate by proactively reaching out and demonstrating awareness of customer vulnerability resulting from the pandemic. Resilience and sustainability will help a few challenger banks survive the pandemic crisis.