Neobanking Market Size, Share, Growth Analysis, By Account Type (Business, Savings), By Product & Service (Saving Account, Loans), By Application (Enterprises, Personal) By Region - Industry Forecast 2025-2032

Neobanking Market size was valued at USD 62 Billion in 2023 and is poised to grow from USD 95.98 Billion in 2024 to USD 3171.12 Billion by 2032, growing at a CAGR of 54.8% during the forecast period (2025-2032).

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. 'Chime (USA)  ', 'Revolut (UK)  ', 'Monzo (UK)  ', 'Starling Bank (UK)  ', 'N26 (Germany)  ', 'SoFi (USA)  ', 'Varo Bank (USA)  ', 'Current (USA)  ', 'Acorns (USA)  ', 'NorthOne (USA)  ', 'Brex (USA) ', 'MoneyLion (USA)  ', 'Tinkoff Bank (Russia)  ', 'Judo Bank (Australia)  ', 'Nubank (Brazil)  ', 'Zopa (UK)  ', 'BankMobile (BM Technologies) (USA)  ', 'Aspiration (USA)  ', 'Paytm Payments Bank (India)  ', 'GoHenry (UK)'

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.

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.

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.