Neobanking Market

Global Neobanking Market Size (2024 to 2029)

The global neobanking market is predicted to reach USD 30.21 billion in 2024 and USD 215.26 billion by 2029, growing at a CAGR of 48.1% during the forecast period.

Current Scenario of the Global Neobanking Market

Neobanking may be a novel banking technology with complete online banking solutions for its customers. These banks differ from traditional ones as they need no physical offices or branches. Neobanking allows everything from opening an account to other services without needing to travel to a bank. Simple, GoBank and Moven are a number of the first-ever Neobanking organizations. However, with rising demand for these banks, rivalry is certain to occur in this market. With the competition among the Neobanks, it'd also emerge as a robust competitor for traditional banking institutions. Moreover, the interface of the Neobank website gives it a superiority, along with easy account opening and transaction processes. Neobanks have developed well from the EU to Brazil, and now Asia might be the tipping point that defines the long run. The “challenger banks” in Asia are mostly backed by big tech companies but are almost non-existent within the Asian market. Asia still doesn't have a proper regulatory framework to accommodate challenger banks, so it's unsurprising to work out that many challenger banks are an offshoot of a bank. Despite this, things are changing, and Asia is comprised of key regions that exhibit a prospective environment for neobanks and the development of the open banking paradigm. China, for example, is anticipated to become one of the largest markets for neobanking by 2025.

MARKET GROWTH TRENDS

The global neobanking market is projected to witness significant growth over the predicted period, attributable to the growing user demand for convenience within the banking sector. Benefits like transactions and automatic products offered by the neo-banking platforms have substantially differentiated neobanks from standard banks. Neobanking websites have a friendly interface, are designed to resist cyberattacks, and better manage online ecosystems. The neobanks monitor the banking network and simply detect cyberattacks, unlike the normal banks where an attack is decided by the damages and aftermath of the attack. Neobanking is a perfect banking technology because it offers complete solutions to customers for online banking.  However, financial security factors and authenticity are a number of factors that are expected to restrain the expansion of this market.

MARKET RESTRAINTS

Growing demand for customer convenience within the banking sector is accelerating and the emergence of multiple technology startups & early adoption technology is driving the neobanking market. Low Interest Rates and Favorable Government Regulations are also helping the market to grow. The global neobanking market is anticipated to witness growth because of the exponential use of technology by the customer and growing access to online content within the banking sector. The neobanks offer various features like cost-effectiveness, higher interest rates, and customer convenience for opening accounts in a much faster and easier way.

Impact of COVID-19 on the Global Neobanking Market

The coronavirus pandemic that impacted almost every country in the world also has an effect on industries and markets. This pandemic and the subsequent lockdown have proven positive in the development of the new banking market. It has helped the market to grow because of a new lifestyle and some new normal.

REPORT COVERAGE

REGIONAL ANALYSIS

Among these regions, Europe held the biggest market share, because of the establishment of multiple technology start-ups and early adoption of technology. The congestion faced in major commercial banks and a rapid increase in technological banking start-ups have created growth opportunities for the non-conventional banking institutions within the area. The Asia Pacific is predicted to emerge as the fastest-growing regional market over the forecast period because of the increasing investments within the FinTech sector. FinTech companies are now developing neobanks as these banks don't demand cumbersome organizational structures and legacy structures. This may end in a rise in the number of new banks in countries like India and China.

KEY PLAYERS IN THE GLOBAL NEOBANKING MARKET

The major companies operating in the global neobanking market include

1. MYBANK,

2. Deutsche Bank,

3. Citigroup,

4. Fidor Bank,

5. CBC,

6. Starling Bank,

7. Movencorp Inc.,

8. Toscana,

9. Agricultural Bank of China, Inc.,

10. HSBC Group,

11. Webank, Inc

RECENT HAPPENINGS IN THE GLOBAL NEOBANKING MARKET

• In February 2020, Spanish start-up NeoBank Bnext is expanding. The corporate is currently rolling out its product in Mexico, and 170,000 people have already signed up to a roster. Bnext will ask those 170,000 potential users first before opening signups to everyone.

• Bnext is offering an alternative to traditional street bank accounts. Customers can open their Bnext account in minutes by employing a mobile app. Some days later, users receive a payment card. They'll then upload money to their Bnext account and begin sending hard cash all around the world.

• In January 2020, Volt has recently announced its ‘no catches’ 2.15 percent a year variable rate of interest on the Volt Save account, already launched to a range of public waitlists; this may be available to the broader public after beta testing. This can be in trend with other neobanks offering same reasonably saving accounts as Xinja Stash Account or Revolut Business Account.

• Australia’s neobank Volt Bank closed a $69m equity funding round, which was oversubscribed by $10m beyond the first target of $60m.

DETAILED SEGMENTATION OF THE GLOBAL NEOBANKING MARKET INCLUDED IN THIS REPORT

The global neobanking market is segmented on the premise of organization size, service type, account type, application, and region.

By Organization Size

• Large Enterprises 

• small     

The global market is bifurcated into large enterprises and small and medium enterprises.

By Service Type

• Loans        

• Mobile Banking     

• Checking & Bank Account 

• Payment & Money Transfer           

The market is classified into loans, mobile banking, checking & bank accounts, payment & money transfer, and others.

By Account Type

• Business Account 

• Bank Account      

The market is divided into business accounts and bank accounts. The business account segment held the biggest market share because it provides a good range of business-related services like credit management, investment management, asset management, and transaction management.

By Application

• Personal  

• Enterprise

The global neobanking market is segmented into personal, enterprise, and other applications. Businesses favor neobanking platforms as they facilitate payments, better management of enterprise collections, and reconciliation on a seamless interface.

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa