USD 36.14 billion
Neobanking Market Size, Share, Growth Analysis, By Account type(Business Account, Saving Account.), By Application(Enterprise, Personal, Others), By Region - Industry Forecast 2024-2031
Report ID:
SQSG45B2025 |
Region:
Global |
Published Date: February, 2024
Pages:
242
|Tables:
62
|Figures:
75
Neobanking Market Insights
Neobanking Market size was valued at USD 36.14 billion in 2019 and is poised to grow from USD 62 billion in 2023 to USD 2048.53 billion by 2031, growing at a CAGR of 54.8% in the forecast period (2024-2031).
Rising demand for convenience among customers in the banking sector is expected to drive market growth. Neobanks offer banking solutions without the need for physicals branches or offices. They help users validate their services offerings in real-time through online channels and mobile sites. In addition, the growing adoption of smartphones and the internet across the world for online banking expected to further accelerate the demand for neobank platform.
Vendors are focusing on launching their mobile app-based banks. The major banks have been slower in terms of the adaptation to new technologies and changing customer needs; however, start-up digital banks have been amassing a large user base actively using their services. Moreover, these start-ups are focusing on developing services that can be easily integrated with business processes. Neobanks are challenging the universal banking model with their personalized insights, lower costs, user-friendly interfaces, predictive intelligence, easy accessibility, and simplified process.
These banks are prioritizing customer needs and structuring their services and products in a way that is strengthening their foothold in the market. Market players are particularly focusing on mergers and acquisitions, partnerships, collaborations, and product launches to strengthen their foothold in the market.
Furthermore, the neobanking model also offers a low-cost structure, easy accessibility, and advanced services. Its cost efficiency is primarily driven by the low real estate and distribution costs, less complex IT systems, and streamlined operating models. Venture capitalists and equity investors are focusing on the market opportunities and investing in neobanks. For instance, according to the MEDICI India Fintech report 2020, India’s neobank start-ups raised more than USD 200 million in 2019.
US Neobanking Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Business Account
Fastest Growth
Business Account
Growth Rate
54.8% CAGR
Global Healthcare Gamification Market by Account type($ Bn)
Country Share for North America Region (%)
To get more reports on the above market click here to Buy The Report
Neobanking Market Segmental Analysis
Neobanking Market is segmented based on the account type, application, and region. On the basis of account type, Neobanking Market is segmented into business account and savings account. On the basis of application, the global neobanking market is segmented into enterprise, personal and others. Based on the region Neobanking Market is segmented as North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Neobanking Market Analysis by Account type
The business account segment dominated the market in 2021 and held the largest revenue share of more than 65.0%. Various businesses across the globe are adopting neobanking as the preferred way of payment for bulk pay-outs. Moreover, the ability of the neobank platforms to offer simplicity and ease of processes in disbursals to vendors and other stakeholders by reducing human intervention is expected to further drive the growth of the segment. The savings account segment witnesses the fastest CAGR over the forecast period.
Neobanking Market Analysis by Application
The enterprises segment dominated the market in 2021 and accounted for more than 52% share of the global revenue. These platforms offer enterprise-related services, such as credit management, and asset management. Various neobank services providers for SMEs are making efforts to enhance their product portfolio through acquisitions aimed toward providing a better customer experience. For instance, in December 2021, Open, an SME Neobanking platform provider, announced the acquisition of FININ, a consumer neobanking platform, for USD 10 million in cash and stock deal.
Global Neobanking Market by Account type
To get detailed analysis on other segments, Request For Free Sample Report
Neobanking Market Regional Insights
The Europe region dominated the global market in 2021 and accounted for over 30% share of the global revenue. The regional market growth can be attributed to the development of multiple innovative technologies and the early adoption of new technologies. Moreover, companies are focused on launching product platforms and entering into partnerships to strengthen their market position. Various neobanks in the region have launched brick-and-mortar distribution channels to establish 020 types of distribution, thereby creating market growth opportunities.
Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growing adoption of internet services, coupled with the increased use of smartphones, is expected to accelerate the market growth. In addition, factors such as easy and convenient banking services and the rise in digital-only banks across countries including Japan, India, and China are expected to further contribute to the growth of the Asia Pacific regional market over the forecast period.
Global Neobanking Market By Region
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Neobanking Market Dynamics
Neobanking Market Driver
- Neobanks don’t offer novel banking services. Their services are similar to those of traditional banks, but with a hyper-enhanced and personalised customer experience. Neobanks have significantly leaner business models and superior technology at their disposal compare to traditional banks, providing ease and efficacy in services such as seamless account creation, round-the-click customer services. Apart from providing primary banking services, neobanks offer automated and near real-time accounting and reconciliation services for bookkeeping, balance sheet. Neobanks are transparent and strive to provide real-time notifications and explanations of any charges and penalties incurred by the custom. Most neobanks provide easy-to deploy and operate APIs to integrate banking into the accounting and payment infrastructure.
- Most neobanks provide dashboard solutions with highly enhanced interface and easy to understand and valuable insights for services such as payments, payables and receivables, and bank statements. Its beneficial for businesses with significant expenditure and appropriate number of employees, to be provided with such insights, reduce expenditure and boost productivity and revenue.
Neobanking Market Restraint
- Authenticity and financial security are major restraints which expected to hinder the growth of global neobanking market throughout the period. As neobanks primarily offer basic banking services, it would not be recommended to engage a neobank for any complex financial transactions or assistance, as the lack of face-to-face contact or support may be frustrating.
Request Free Customization of this report to help us to meet your business objectives.
Neobanking Market Competitive Landscape
Vendors are concentrating on the launch of mobile app-based banks. The major banks have been slower to adapt to new technologies and changing customer needs; however, start-up digital banks have amassed a large user base that actively uses their services. Furthermore, these start-ups are concentrating on creating services that can be easily integrated into business processes. With personalized insights, lower costs, user-friendly interfaces, predictive intelligence, easy accessibility, and simplified processes, neobanks are challenging the universal banking model. Market players are particularly focusing on mergers & acquisitions, partnerships, collaborations, and product launches to strengthen their foothold in the market. For instance, N26 announced the extension of its partnership with Transfer Wise, a technology leader for international payments, to offer international money transfers in over 30 currencies through the N26 app.
Top Players in the Global Neobanking Market
- Revolut
- N26
- Monzo
- Chime
- Varo Bank
- Starling Bank
- TransferWise
- Robinhood
- Ally Bank
- Simple
- Aspiration
- Dave
- Moven
- Stash
- Atom Bank
- Tandem Bank
- Marcus by Goldman Sachs
- SoFi
- Current
- Fidor Bank
Neobanking Market Recent Developments
- In April 2021, Google pay co-creators announced the launch of Fi, a neobank, in partnership with the Federal Bank to provide an instant savings account with debit cards for salaried millennials.
- In November 2021, Fedo, a health tech company, announced the launch of a health savings account named Fedo HSA in partnership with Open, a neobank. Through this partnership, Fedo HSA planned to offer combined accounts that help customers meet their required spendings through a combination of insurance, smart savings, and line of credit bundled in savings accounts with health credit and debit card features.
- In December 2021, Open, an SME Neobanking platform provider, announced the acquisition of Finin, a consumer Neobanking platform, for USD 10 million in cash and stock deal.
Neobanking Key Market Trends
- Increasing number of partnerships of banks and organizations to launch neobanks platforms is also accelerating the market growth. Such partnership is aimed toward providing a better customer experience and enhanced safety and stability. For instance, in April 2021, Google pay co-creators announced the launch of Fi, a neobank, in partnerships with the Federal Bank to provide an instant savings account with debit cards for salaried millennials. Technological advancement and the notable increase in internet penetration globally allow financial service providers to offer novel digital services to customers. Moreover, the growth in digital wallets has also been driving the demand for online banking platforms.
- According to Visa, a multinational financial service company, there are more than one billion mobile money wallets worldwide. Many financial service providers are collaborating with mobile money wallet providers to offer affordable money transfer services. Nonbanking is gaining popularity among retail customers and Small- and Medium-sized Enterprises (SMEs). Free debit cards, digitized account opening, personal finance advisory, instant payments, e-bill generation, invoice management, account integration, and GST-compliant invoicing are some of the key features propelling retail customers and SMEs to adopt neobanks over traditional banks and use the digital services offered by them efficiently.
Neobanking Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, numerous health tech companies are entering into partnerships with fintech companies to develop and launch products and services to cater to the growing demand for the product. This acquisition was aimed at strengthening Open’s cloud-native enterprise offering named Banking Stack, through which, Open has deployed SME banking platforms for 17 banks. The personal application segment is anticipated to witness the fastest growth over the forecast period. The high penetration rate of smartphones has enabled customers to widely opt for neobanking services owing to convenience and ease of use.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 36.14 billion |
| Market size value in 2031 | USD 2048.53 billion |
| Growth Rate | 54.8% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered | |
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Neobanking Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Neobanking Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Neobanking Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Neobanking Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Neobanking Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Neobanking Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
USA (+1) 351-333-4748
