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).

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.