Global Neobanking Market Size (2024 - 2029)

The Global Neobanking Market is experiencing significant growth, driven by the increasing reliance on online banking services and technological advancements. Neobanks, which operate exclusively online without traditional physical branches, have transformed the banking process by automating financial operations and providing users with comprehensive digital platforms. The COVID-19 pandemic accelerated the adoption of neobanking as businesses sought to streamline their financial activities, reducing the need for in-person transactions and extensive paperwork. This shift has made neobanks an essential component of the modern banking landscape, contributing to the expansion of the market size.

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Market Size of Global Neobanking Industry

Neobanking Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 24.60 %
Market Concentration Medium

Major Players

Neobanking Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Neobanking Market Analysis

The Global Neobanking Market is expected to register a CAGR of 24.60% during the forecast period.

Neobanking Market is estimated to have generated USD 4550 Billion worth of transaction value in the current year and is poised to achieve a CAGR of 24.6% for the forecast period.

A Neo bank is a sort of direct bank that solely does business online and lacks conventional physical branch networks, sometimes referred to as an online bank, internet-only bank, virtual bank, or digital bank. The financial institutions known as Neo Banks collaborate with licensed banks to do business. They use API banking to automate financial processes and give their customers access to a single dashboard where they can handle everything from accounting to reconciliations, and payments.

The Impact of COVID-19 pandemic had a favorable effect on Neobanking Apps because of the growing reliance on online banking services. Banks and businesses were collaborating to introduce new banking platforms. Financial service providers have supplied customers with digital services thanks to technological improvements and rising internet usage around the world. The pandemic had a significant impact on how firms conduct their regular financial operations. Traditionally, every banking procedure for businesses involved laborious paperwork and physical branch visits, from changing the payout approval process to opening a current account. Neo banks helped traditional banking in the wake of the virus by successfully resolving some of its operational issues, making their adoption more crucial than ever. Additionally, the rate at which neo-banks were adopted during the epidemic shows that users did so with open arms.

The entire banking procedure has been digitalized by Neo banks. Long lines are no longer necessary to process payments or withdraw cash. To open a current account or get their loan accepted, businesses don't need to visit a physical branch or fill out an endless amount of paperwork.

Neobanking Industry Segmentation

The Global Neo banking market is segmented by account type (Business account, Savings account), by services (Mobile-banking, Payments and money transfers, savings, Loans, Others), by application type (Personal, Enterprises, Other applications), and by Geography (North America, Europe, Asia-Pacific, Middle East, and Africa, and South America). The report offers market size and forecast values for the Neobanking Market in USD billion for the above segments.

Account Type
Bussiness Account
Savings Account
Services
Mobile- Banking
Payments
Money- Transfers
Savings Account
Loans
Others
Application
Personal
Enterprise
Other Application
Geography
North America
Europe
Asia - Pacific
Middle- East & Africa
South America
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Global Neobanking Market Size Summary

The global neobanking market is experiencing significant growth, driven by the increasing digitization of banking services and the rising demand for online financial solutions. Neobanks, which operate entirely online without traditional physical branches, have gained popularity due to their ability to streamline banking processes through technology. The COVID-19 pandemic accelerated the adoption of neobanking services as consumers and businesses sought contactless and efficient banking solutions. This shift has led to a greater reliance on digital platforms, with neobanks offering a range of services from account management to payments, all accessible through a single dashboard. The integration of advanced technologies such as artificial intelligence and analytics has further enhanced the customer experience, making neobanks a preferred choice for modern users, particularly among younger generations like Gen Z.

The market is characterized by a fragmented landscape with several key players, including Chime, Monzo Bank Limited, Starling Bank, and N26, leading the charge in innovation and service expansion. These companies are continuously enhancing their offerings to meet the evolving needs of their customers. Recent developments, such as the introduction of assured cashback debit cards by Kitzone Neo Bank in India and the integration of Bizum by N26 in Spain, highlight the ongoing efforts to expand market presence and improve service delivery. As neobanks continue to leverage technological advancements to reduce costs and improve client satisfaction, their market share is expected to grow, driven by increasing funding and the expansion of services across different regions.

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Global Neobanking Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights on Technology Advancement

    5. 1.5 Insights on Regulatory Policies

    6. 1.6 Value Chain / Supply Chain Analysis

    7. 1.7 Porters 5 Force Analysis

      1. 1.7.1 Threat of New Entrants

      2. 1.7.2 Bargaining Power of Buyers/Consumers

      3. 1.7.3 Bargaining Power of Suppliers

      4. 1.7.4 Threat of Substitute Products

      5. 1.7.5 Intensity of Competitive Rivalry

    8. 1.8 Impact of Covid 19 on market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Account Type

      1. 2.1.1 Bussiness Account

      2. 2.1.2 Savings Account

    2. 2.2 Services

      1. 2.2.1 Mobile- Banking

      2. 2.2.2 Payments

      3. 2.2.3 Money- Transfers

      4. 2.2.4 Savings Account

      5. 2.2.5 Loans

      6. 2.2.6 Others

    3. 2.3 Application

      1. 2.3.1 Personal

      2. 2.3.2 Enterprise

      3. 2.3.3 Other Application

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia - Pacific

      4. 2.4.4 Middle- East & Africa

      5. 2.4.5 South America

Global Neobanking Market Size FAQs

The Global Neobanking Market is projected to register a CAGR of 24.60% during the forecast period (2024-2029)

Monzo Bank Ltd., Chime Financial Inc., Starling Bank, Sofi and N26 are the major companies operating in the Global Neobanking Market.

Global Neobanking Market Report Snapshots

Global Neobanking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)