Neobanking Market to Grow with a CAGR of 30.46% Globally through 2028

The global neobanking market is rapidly expanding, driven by digital innovation and consumer demand for convenient, online banking services. Fintech startups challenge traditional banks with user-friendly, mobile-first platforms.

 

According to TechSci Research report, “Global Neobanking Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Neobanking Market stood at USD 68.4 billion in 2022 and is anticipated to grow with a CAGR of 30.46% in the forecast period, 2024-2028. The global neobanking market is undergoing a transformative surge, reshaping traditional banking models with digital innovation and customer-centric approaches. Neobanks, also known as digital banks or challenger banks, leverage technology to provide seamless, user-friendly financial services primarily through mobile and online platforms. A key driver of this evolution is the growing consumer demand for convenient, efficient, and accessible banking solutions. Fintech startups, unburdened by legacy systems, can swiftly adapt to technological advancements, providing agile and responsive services. Their mobile-first approach caters to the on-the-go lifestyle of modern consumers, who increasingly prefer digital interactions over traditional brick-and-mortar banking.

 

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Neobanking Market” 

 

The global neobanking market is propelled by several key drivers that collectively contribute to its rapid expansion and transformative impact on the financial services landscape. One fundamental driver is the shifting consumer demand for banking experiences characterized by convenience, efficiency, and accessibility. Modern consumers, accustomed to the digital era, increasingly seek user-friendly and technologically advanced financial solutions. Neobanks, with their mobile-first platforms and innovative services, directly address this demand, offering a seamless and convenient alternative to traditional banking.

Technological advancements form another critical driver, enabling neobanks to revolutionize the industry. These financial institutions leverage cutting-edge technologies such as artificial intelligence, cloud computing, and data analytics to optimize operations, enhance customer experiences, and introduce innovative services. Unlike traditional banks constrained by legacy systems, neobanks have the agility to rapidly adopt and integrate the latest technological advancements, giving them a competitive edge in providing efficient and modern financial solutions.

Fintech startup agility is a distinctive driver of the neobanking market. Unburdened by the complex infrastructures and bureaucratic processes of traditional banks, fintech startups can swiftly adapt to market demands and emerging trends. This agility allows neobanks to experiment with new features, services, and business models, fostering a culture of innovation. The ability to pivot quickly in response to customer feedback positions neobanks at the forefront of financial technology, attracting consumers seeking cutting-edge and responsive financial services.

Regulatory support acts as a catalyst for the neobanking market. Recognizing the potential benefits of fintech innovation, regulatory bodies in various regions are establishing frameworks that facilitate the growth of neobanks. Open banking initiatives, for instance, require traditional banks to share customer data securely with authorized third-party providers, fostering collaboration and enabling neobanks to offer innovative financial services. Regulatory sandboxes and favorable licensing regimes further create an environment that encourages experimentation and growth within the neobanking sector.

Demographic shifts and financial inclusion are pivotal drivers shaping the neobanking landscape. Neobanks appeal to a diverse demographic, particularly gaining traction among tech-savvy millennials seeking innovative banking solutions. Simultaneously, these digital banks contribute to financial inclusion by providing affordable and accessible services to underserved populations, such as immigrants and the underbanked. The inclusive nature of neobanks aligns with global efforts to bridge the gap between those with and without access to traditional financial services.

In conclusion, the neobanking market's growth is driven by a confluence of factors, each playing a crucial role in reshaping the financial services industry. From addressing changing consumer preferences to leveraging technological advancements and regulatory support, neobanks have positioned themselves as disruptive forces in the sector. Their agility and ability to meet the diverse needs of a global consumer base position them as key players in the future of banking. As the market continues to evolve, neobanks are expected to play an increasingly influential role in shaping the financial landscape.

Savings accounts are emerging as a growing segment within the neobanking industry. Neobanks are capitalizing on the appeal of high-yield savings accounts, offering competitive interest rates that attract consumers seeking better returns on their savings. With user-friendly digital platforms and tools for automated savings, these accounts provide convenient options for individuals to build their financial reserves. Additionally, neobanks are emphasizing transparency, minimal fees, and accessibility, catering to customers' preferences for hassle-free, mobile-first banking. As neobanks continue to innovate and expand their savings account offerings, this segment is poised to grow, appealing to both savers and those seeking modern banking solutions.

 

Major companies operating in Global Neobanking Market are:

• Atom Bank PLC
• Fidor Bank Ag
• Monzo Bank Ltd.
• Movencorp Inc.
• Mybank
• N26
• Revolut Ltd.
• Simple Finance Technology Corp.
• Ubank Limited
• Webank, Inc.

 

Download Free Sample Report

Customers can also request for 10% free customization on this report.

 

“The global neobanking market is experiencing significant growth driven by factors such as consumer demand for digital convenience, technological innovation, fintech agility, regulatory support, and financial inclusion efforts. Neobanks, characterized by user-friendly mobile platforms, offer a broad spectrum of services and leverage AI for personalization. They are also focusing on sustainability, expanding internationally, and navigating evolving regulatory landscapes. However, challenges include regulatory compliance, cybersecurity, customer acquisition, and achieving profitability while providing fee-friendly services. Despite these challenges, neobanks are poised to reshape the financial industry, catering to modern consumers and offering innovative financial solutions in a dynamic, digital-centric era.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“Neobanking Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Account Type (Business Account, Savings Account), By Application (Enterprise, Personal), By Region, By Competition, 2018-2028”, has evaluated the future growth potential of Global Neobanking Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Neobanking Market.

 

Contact

Mr. Ken Mathews

Techsci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

Tel: +1-332-258-6602

Email: [email protected]

Website: www.techsciresearch.com