Neobanking market is anticipated to grow at a significant CAGR of 49.4% during the forecast period. The growing adoption of smartphones and the internet across the globe for online banking is anticipated to grow the neobanking market. According to World Bank data, of 2020 around 60% of world population is using internet and on an average around 106 people per 100 people have mobile cellular subscription which shows the increasing mobile use across the globe. Neobanks offer banking solutions without the need for physical branches or offices. They help customers to validate their service offerings in real-time through online medium and mobile sites. The adavantages of neobanks includes low costs, suitability, speed, security and transparency. Due to the busy life schedule customers don’t want to go to banks and waste their time, hence with use of smartphones they want to operate their bank account and do financial transactions without any problem which is more convenient. Thus these factors are  propelling the demand for neobanking across the globe. 

Segmental Outlook 

The global neobanking market is segmented based on account type, service, and application. Based on account type, the market is segmented into business account, savings account . Based on service, the market is sub-segmented into mobile banking, payments & money transfer, checking/savings account, loans. Based on application the market is segmented into enterprises, personal. The above mentioned segments can be customized as per the requirements. Based on account type the business account segment is anticipated to grow at the fastest rate during the forecast period. As due to varios adavantages of neobanking, many businesses across the globe are adopting neobanking as the preferred way of payment for bulk payouts,disbursals, vendor payment/management and others. Moreover, the ability of the neobank platforms to offer simplicity and ease of processes in disbursals to vendors and other stakeholders by reducing human intervention and errors is anticipated to further drive the growth of the segment. According to Novo Platform Inc., a neobank that has built a service targeting small businesses, has closed a round of $40.7 million, a Series A that it will be using to continue growing its business, and its platform. The services of Novo is trusted by over 160,000 small businesses across the globe which shows the increasing popularity and demand among enterprises for neobanking. Hence these factors are boosting the segment.

Regional Outlooks

The global neobanking market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  The market can be analyzed for a particular region or country level as per the requirement. Europe is anticipated to grow at the fastest rate during the forecast period. This growth can be attributed to the development of multiple innovative technologies and the early adoption of new technologies, rules & regulation by the government. According to European Banking Authority, in September 2020, European Commission launched a strategy named Digital Finance Strategy (DFS) whose main objectives are to tackle fragmentation in the digital single market for financial services,, ensure that the EU regulatory framework facilitates digital innovation in the interest of consumers and market efficiency, address new challenges and risks associated with the digital transformation. Furthermore, according to European Banking Federation, in Europe more than 2,000 startups dedicate their business to financial technology, while globally more than 7,500 startups provide valuable solutions for the industry. Thes factors boosts the demand for neobanking in Europe.

Global Neobanking  Market Growth, by Region 2022-2028

The Asia-Pacific Region is Expected to Hold the Considerable Share in the Global Neobanking Market during the Forecast Period. 

The Asia-Pacific region is expected to hold the considerable share in the global neobanking market during the forecast period. The growing population, growing income is boosting the demand for neobanking acorss the Asia-Pacific region during the forecast period. As the population increases the demand for advanced technology based, safe and secure banking also increases.  According to UN 61% of the global population lives in Asia (4.7 billion). China (1.44 billion) and India (1.39 billion) remain the two most populous countries of the world, both with more than 1 billion people, representing 19% and 18% of the world’s population, respectively. Around 2027, India is projected to overtake China. 

Market Players Outlook

The major companies serving the global neobanking market include Atom bank plc, Fidor Bank AG, Monzo Bank Ltd., Movencorp, Inc., Preta S.A.S. and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in December 2021, Google-backed neo-bank Open Financial Technologies Private Ltd. acquired consumer neo-banking platform Finin in a $10 million cash-and-stock deal. Open, which had raised $100 million in October, will use Finin to strengthen its enterprise business and take it overseas in a significant way after the deal. This acquisition will help the open financial technologies private ltd. To get customer from countries like Vietnam, Philippines and others. This acquisition will be able to add a lot of value to Open’s SMEs wanting to open salary accounts for employees, expose consumer banking rails to fintechs using Open’s embedded finance platform Zwitch, and also add value to banks wanting to launch digital banking propositions using Open’s cloud native digital banking OS BankingStack.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global neobanking market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.