The Global Neobanking Market size is expected to reach $333.4 billion by 2026, rising at a market growth of 47.1% CAGR during the forecast period. Neobanks provides a broad range of banking solutions with no physical branches or offices. The rising demand for the comfort of customer in the banking industry is anticipated to boost the market growth. Neobanks are customer-centric and provide customized services to customers, which make them different from conventional banks. Neobank platforms help users to validate their service offerings in real-time with the help of mobile sites and online channels.
With the help of these platforms, the need for human interference is eliminated, hence decreasing errors related to the transaction. In addition, neobanking offers numerous advantages like quick servicing, healthy interest rates, and cost-effective banking, which are anticipated to boost the growth of the market during the forecast years. Neobanks have considerable growth potential which is boosted by its low-cost model for end-users with very low or no monthly fees for financial services like deposits, withdrawals, and balance maintenance.
The market potential for neobanks is driven by the rising penetration of internet and the smartphones across the globe. Also, the global market competition is boosted by the increasing customer interest, hence pushing neobanks to introduce various features like sign-up incentives and overdraft protection. Various neobanks work under a freemium model, under which they provide their services for free, hence appealing to a broad customer base. Customers are also extensively accepting neobanking services due to advantages like personal finance management features, such as low-interest rates, and enhanced user experience.
Based on Account Type, the market is segmented into Business Account and Savings Account. The market was dominated by the business account segment in 2019. Several businesses globally are adopting neobanking as the preferred method of payment for bulk payouts. Moreover, neobanking models smoothly incorporate banking into business workflows with developer-friendly banking Application Programming Interface (API) to boost the fast and scalable growth of businesses.
Based on Application, the market is segmented into Enterprises, Personal and Others. The personal application segment is expected to observe considerable growth over the forecast period. The massive penetration rate of smartphones has facilitated customers to extensively choose neobanking services due to convenience and ease of use. The services are provided utilizing mobile app interfaces, which further assist money transfers and payments with the help of the app. The comfort of opening and operating accounts efficiently is further expected to boost the adoption of neobanking over the forecast years.
| Report Attribute | Details |
|---|---|
| Market size value in 2019 | USD 34 Billion |
| Market size forecast in 2026 | USD 333.4 Billion |
| Base Year | 2019 |
| Historical Period | 2016 to 2018 |
| Forecast Period | 2020 to 2026 |
| Revenue Growth Rate | CAGR of 47.1% from 2020 to 2026 |
| Number of Pages | 146 |
| Number of Tables | 254 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling, Competitive Analysis |
| Segments covered | Account Type, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Free Valuable Insights: Global Neobanking Market to reach a market size of $333.4 billion by 2026
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia Pacific is anticipated to emerge as the highest growing market over the forecast period. The increasing adoption of internet services, along with the high utilization of smartphones, is anticipated to push the market growth. In order to accelerate modernization and innovation through competition, regional regulators are slowly creating neobanking systems for wider participation. New entrants are likely to explore avenues to introduce extremely related services in the region with an exceptional level of ease & comfort and low pricing.
The major strategies followed by the market participants are Product Launches and Partnerships. Based on the Analysis presented in the Cardinal matrix; Banco Bilbao Vizcaya Argentaria SA is the forerunner in the Neobanking Market. Companies such as Atom Bank PLC, Sopra Steria Group SA, and Revolut Ltd., N26 GmbH, and Deutsche Bank AG are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Atom Bank PLC, Monzo Bank Ltd., Moven Enterprises, N26 GmbH, Revolut Ltd., Ubank Limited, WeBank Co., Ltd., Banco Bilbao Vizcaya Argentaria SA (Simple Finance Technology), Deutsche Bank AG, and Sopra Steria Group SA (Fidor Solutions AG).
By Account Type
By Application
By Geography
Companies Profiled
The global neobanking market size is expected to reach $333.4 billion by 2026.
There are several reason that cause high demand of this market one of them is neobanks offer automated services and transparency.
Atom Bank PLC, Monzo Bank Ltd., Moven Enterprises, N26 GmbH, Revolut Ltd., Ubank Limited, WeBank Co., Ltd., Banco Bilbao Vizcaya Argentaria SA (Simple Finance Technology), Deutsche Bank AG, and Sopra Steria Group SA (Fidor Solutions AG).
The Business Account market dominated the Global Neobanking Market by Account Type 2019.
The European region garnered the highest share of the neobanking market in 2019.
The expected CAGR of neobanking market is 47.1% from 2020 to 2026.
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