The neobanking sector experienced exponential growth, rising from $118.57 billion in 2023 to $176.6 billion in 2024, with an impressive CAGR of 48.9%. Growth was driven by consumer preferences, cost efficiency, and regulatory advancements. The market is projected to reach $836.11 billion by 2028, with a CAGR of 47.5%. Key drivers include open banking, challenger banks, and product expansion. Trends include fintech partnerships, AI in finance, and virtual banking features.
Major Driver In The Neobanking Market
The increasing digitalization trend in banking institutions worldwide is driving the growth of the neobanking market, revolutionizing traditional banking with streamlined digital solutions. Neobanks, devoid of physical branches, offer personalized banking experiences at competitive prices through advanced technologies like artificial intelligence and cloud computing. As evidenced by a survey by McKinsey and Company in 2021, the adoption of digital banking in Asia–Pacific developing countries surged to 88%. This shift towards digital banking underscores the burgeoning opportunities for neobanks to cater to evolving consumer preferences, fostering market growth through 2023, 2024, and beyond.
Request A Free Sample Of The Global Neobanking Market Report
Neobanking Market Competitive Landscape
Wells Fargo & Company, U.S. Bancorp, TD Ameritrade Holding Corporation, Webank Inc., Nubank, Chime Financial Inc., SoFi Technologies Inc., Green Dot Corporation, Robinhood Markets Inc., Revolut Ltd., Upgrade Inc., Monzo Bank Ltd., Aspiration Inc., Tangerine Bank, N26 GmbH, Starling Bank Ltd., Personal Capital LLC, Radius Financial LLC, Ubank Limited, Betterment LLC, Bunq BV, Stash Invest LLC, Wealthfront Corporation, Simple Finance Technology Corp, Daylight Financial Corp, Vivid Money GmbH, Monese Ltd., Varo Money Inc., Current Financial Inc., Acorns Grow Inc., JPMorgan Chase & Co
Key Neobanking Market Trend
Technological Advancement is a key trend propelling the neobanking market. Artificial intelligence is used in neobanking services and solutions to improve efficiency. AI can provide consumers with highly personalized solutions and logical reminders and notifications that will help them save money and enjoy more ease. It helps in credit decisions, risk management, trading and personalized services. In March 2021, DigiBankASIA, a Singapore-based financial services company, entered into a partnership with Xebia to launch Asia's digital Bank, UnoBank. Combining top banking products to provide a distinctive and cutting-edge digital foundation, Xebia will be UNO's digital and innovative technology partner in building Cognito, UNO's digital-first platform. It is ideally positioned to construct a cutting-edge and intelligent CX platform for UNObank due to its experience in technologies like Al/ML, IoT, AR/VR, Cloud, DevOps, Big Data & Analytics. Xebia is a US-based IT consultancy company.
Get The Full Global Neobanking Market Report
Neobanking Market Segmentation
The neobanking market covered in this report is segmented –
1) By Account Type: Business Account, Savings Account
2) By Service: Mobile Banking, Payments And Money Transfer, Checking/Savings Account, Loans, Other Services
3) By Application : Enterprises, Personal, Other Application
By Geography:The regions covered in the neobanking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Western Europe was the largest region in the neobanking market in 2023.
The Neobanking Global Market Report 2024 furnishes information about the global neobanking market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
