Market Size of Asia-Pacific Neo Banking Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 8.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
APAC Neo Banking Market Analysis
The covid-19 pandemic had a significant effect on the economies of the region, however, the growth of the neo-banking market in the region accelerated during and after the pandemic. The demand for the online banking offered by the Neo banks rose significantly during the pandemic when people were confined to their homes due to lockdown and other restrictions.
Aside from the pandemic's contribution, neobanks' product offerings can also be linked to user growth. They've positioned themselves to provide financial products that will assist customers in achieving short-term financial objectives such as saving and stock trading. Furthermore, an enhanced regulatory environment might also be attributed to the market's significant client growth in the Asia-Pacific region. As the government displays concern to protect consumer funds, most authorities have a reputation for imposing severe rules. In addition, the region is recognized for having a primarily young population. Neobanks, in particular, appeal to younger, more tech-savvy consumers. Neo banking is ready for expansion in APAC, due to the large share of young people with expanding levels of disposable income, increased internet and mobile coverage, and a largely untapped market.
However, a lack of trust and reluctance to transfer to an unknown provider rather than the existing institutions that customers trust is a major impediment to converting to digital banks across the region. Furthermore, a large proportion of customers were either unaware of the existence of Neo banks or had no idea how they worked, which is a common trait for a Neo bank market in its early phases of development. However, 70% of Asia Pacific customers would at least consider a financial product offered by a non-finance source, with a preference for digital banking solutions offered by well-established shops, IT organizations, or telecommunications firms. Enabling costs have also been a substantial barrier to entry for customers in rural areas of the market. Because of the lack of infrastructure and high relative costs, a large segment of the population is unable to consider becoming digital bank adopters.
APAC Neo Banking Industry Segmentation
A neo bank is a digital bank with no physical locations. Neo banking operates solely online, rather than having a physical presence at a specific place. Neo banking is a broad term that encompasses a wide range of financial service providers who primarily target tech-savvy clientele. This report aims to provide a detailed analysis of the Asia-Pacific Neo banking Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. Asia-Pacific Neo Banking Market can be segmented By Account Type, (Business Account, Saving Account), By Service(Mobile Banking, Payments, and Money Transfer, Loans, Others), By Application,(Enterprises, Personal, and Others), By Geography (China, India, Australia, Singapore, Hongkong, and the Rest of Asia-Pacific).
By Account Type | |
Business Account | |
Saving Account |
By Service | |
Mobile Banking | |
Payments and Tranfer | |
Loans | |
Others |
By Application | |
Enterprise | |
Personal | |
Others |
By Geography | |
China | |
India | |
Australia | |
Singapore | |
Hongkong | |
Rest of Asia-Pacific |
Asia-Pacific Neo Banking Market Size Summary
The Asia-Pacific neo banking market has experienced significant growth, particularly accelerated by the covid-19 pandemic, which heightened the demand for online banking solutions as consumers turned to digital platforms during lockdowns. Neo banks have successfully attracted a younger, tech-savvy demographic by offering financial products that cater to short-term financial goals, such as saving and stock trading. The region's favorable regulatory environment, aimed at protecting consumer funds, has further bolstered market growth. Despite these advantages, challenges such as a lack of trust in new providers, limited awareness of neo banking, and high costs in rural areas have hindered broader adoption. However, the region's large young population, increasing disposable income, and expanding internet and mobile coverage present substantial growth opportunities for neo banking.
The Asia-Pacific region, while currently having fewer neo banks compared to Europe and the US, is poised for rapid expansion due to its burgeoning fintech sector and the rise of payment-capable IoT devices. With 68 neo banks operating in the region, countries like India, Australia, and Hong Kong lead in the number of neo banks, while China boasts the highest number of neo bank customers. Major players such as WeBank, Paytm, and KakaoBank are actively enhancing their digital offerings to attract and retain customers. Recent developments, such as WeLab Bank's digital wealth advising services and Kakao Bank's partnerships for financial product development, highlight the dynamic nature of the market. As traditional banks also ramp up their digitalization efforts, the competitive landscape in the Asia-Pacific neo banking market is expected to intensify.
Asia-Pacific Neo Banking Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Driver
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1.3 Market Restraints
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1.4 Porters 5 Force Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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1.5 Insight on Technologial Adoption in the Market
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1.6 Insight on Various Government Regulations in the Market
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1.7 Impact of Covid 19 on market
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2. MARKET SEGMENTATION
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2.1 By Account Type
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2.1.1 Business Account
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2.1.2 Saving Account
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2.2 By Service
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2.2.1 Mobile Banking
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2.2.2 Payments and Tranfer
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2.2.3 Loans
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2.2.4 Others
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2.3 By Application
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2.3.1 Enterprise
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2.3.2 Personal
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2.3.3 Others
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2.4 By Geography
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2.4.1 China
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2.4.2 India
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2.4.3 Australia
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2.4.4 Singapore
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2.4.5 Hongkong
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2.4.6 Rest of Asia-Pacific
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Asia-Pacific Neo Banking Market Size FAQs
What is the current Asia-Pacific Neo Banking Market size?
The Asia-Pacific Neo Banking Market is projected to register a CAGR of 8% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific Neo Banking Market?
WeBank, Paytm, WeLab Bank, kakaobank and MyBank are the major companies operating in the Asia-Pacific Neo Banking Market.