USD 98.35 billion
Neo Bank Market Size, Share, and Growth Analysis
Neo Bank Market By Account Type (Personal, Business), By Service (Savings/Checking Accounts, Payments & Money Transfers), By Target Audience, By Technology, By Application, By Region - Industry Forecast 2025-2032
Report ID:
SQSG40A2001 |
Region:
Global |
Published Date: January, 2025
Pages:
157
|Tables:
90
|Figures:
76
Format -
Neo Bank Market Insights
Global Neo Bank Market size was valued at USD 98.35 billion in 2023 and is poised to grow from USD 146.05 billion in 2024 to USD 3453.92 billion by 2032, growing at a CAGR of 48.5% during the forecast period (2025-2032).
Neobanks provide banking services without the use of physical branches or offices. They assist users in real-time validation of their service offerings via online channels and mobile sites. Furthermore, the increasing global adoption of smartphones and the internet for online banking is expected to fuel demand for neobank platforms. The rising demand for accessibility among banking customers is expected to drive Neo Bank Market growth.
US Neo Bank Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Business
Fastest Growth
Business
Growth Rate
48.5% CAGR
Global Neo Bank Market, 2021-2028 ($ Bn)
Country Share for Asia Pacific Region- 2021 (%)
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Neo Bank Market Segments Analysis
Global Neo Bank Market is segmented by Account Type, Service, Target Audience, Technology, Application and region. Based on Account Type, the market is segmented into Personal and Business. Based on Service, the market is segmented into Savings/Checking Accounts, Payments & Money Transfers, Mobile Banking, Loans/Insurance/Investments and Others. Based on Target Audience, the market is segmented into Mass affluent individuals, Small and medium-sized businesses (SMBs), Freelancers and gig workers and Unbanked and underbanked populations. Based on Technology, the market is segmented into Artificial intelligence (AI), Machine learning (ML), Cloud computing, Application programming interfaces (APIs) and Biometric authentication. Based on Application, the market is segmented into Enterprises, Personal and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Neo Bank Market Analysis by Account Type
The Neo Bank Market has been classified into two types of accounts: Business and Savings. In 2021, the business account sector led the Neo Bank Market, contributing to more than 65% of total revenue. Neobanking is becoming the favored method of payment for large settlements in a variety of industries around the world. Furthermore, the potential of neobank platforms to give vendors and other stakeholders simplicity and ease of processes in disbursals by decreasing human participation is projected to fuel the segment's growth. Over the projected period, the savings account segment is expected to grow at the fastest rate.
Neo Bank Market Analysis by Application
In 2021, the enterprise segment led the market, accounting for more than 52% of global revenue. Credit management, transaction management, and asset management are just a few of the enterprise-related services available on these platforms. Various neobank service providers for SMEs are working to expand their product portfolio through acquisitions to better serve their customers. The services are provided using mobile app interfaces, which also allow for money transfers and payments. Over the projected period, the convenience of opening and operating accounts effectively is expected to drive the use of neo banking in this market.
Global Neo Bank Market By Account Type, 2021(%)
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Neo Bank Market Regional Insights
In 2021, the Europe region led the global Neo Bank Market, accounting for more than 30% of global revenue. The development of many innovative technologies and the early adoption of new technologies can be credited to the regional market's growth. Furthermore, corporations are concentrating their efforts on creating product platforms and forming alliances to increase their Neo Bank Market position. Over the forecast years, Asia Pacific is expected to be the fastest-growing regional Neo Bank Market. The increased use of smartphones, together with the expanding use of internet services, is likely to accelerate Neo Bank Market growth. Furthermore, factors such as accessible and convenient banking services, as well as the expansion of digital-only banks in countries such as Japan, India, and China, are likely to contribute to the Asia Pacific regional Neo Bank Market growth over the forecast period.
Global Neo Bank Market By Geography, 2021 - 2028
- Largest
- Fastest
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Neo Bank Market Dynamics
Neo Bank Market Driver
- The Neo Bank Market is also growing due to the increasing number of partnerships between banks and organizations to create neo banking platforms. Such collaborations strive to provide a better client experience as well as increased safety and stability. Financial service providers may now offer customers fresh digital offerings thanks to technological improvements and a significant increase in internet access around the world.
- Neobanking is growing in popularity among small and medium-sized businesses and retail clients (SMEs). Free debit cards, digitized account opening, personal finance advisory, instant payments, e-bill generation, invoice management, account integration, and GST-compliant invoicing are just a few of the key features that are encouraging retail customers and SMEs to switch to neobanks and take advantage of their digital services.
Neo Bank Market Restraint
- In comparison to regular banks, neobanks have a limited product offering, which is predicted to impede Neo Bank Market expansion. Neobanks also have profitability issues because they offer services at a low cost to attract new consumers.
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Neo Bank Market Competitive Landscape
Major banks have been slower to adapt to new technologies and changing client needs; nevertheless, start-up digital banks have amassed a substantial user base that is actively using their services. Furthermore, many start-ups are concentrating on creating services that are simple to integrate into company processes. With their tailored insights, cheaper costs, user-friendly interfaces, predictive intelligence, quick accessibility, and simplified processes, neobanks are challenging the universal banking paradigm.
Top Players in Neo Bank Market
- Nu Pagamentos S.A (Brazil)
- SoFi (US)
- Chime Capital, LLC (US)
- Revolut Ltd (UK)
- N26 AG (Germany)
- Monzo Bank Limited (UK)
- Varo Bank (US)
- Starling Bank (UK)
- Atom Bank PLC (UK)
- Upgrade (US)
- Fidor Bank AG (Germany)
- Movencorp Inc. (US)
- Mybank (China)
- Simple Finance Technology Corp. (US)
- Ubank Limited (Australia)
- Webank, Inc. (China)
- Brex (US)
- Ramp (US)
- Klarna (Sweden)
- Current (US)
Neo Bank Market Recent Developments
- In May 2022, Open, a Bengaluru-based neo-banking startup, has raised USD 50 million in a Series D funding round led by IIFL, with existing investors Temasek, Tiger Global, and 3one4 Capital also participating.
- In May 2022, Valar Ventures Management, led by Peter Thiel, is spearheading a CAD 185 million investment round for Canada's Neo Financial Technologies Inc., propelling it to a $1 billion valuation as it prepares to expand into mortgages.
- In March 2022, TPG, a private equity firm, led a $300 million Series F investment for the 10-year-old Irvine, California-based startup. Acorns canceled preparations for a public offering via a SPAC merger about two months ago, prompting the campaign.
Neo Bank Key Market Trends
- Low real estate and distribution costs, less complex IT systems, and streamlined operating models drive its cost-efficiency. Investors in venture capital and equity are focusing on Neo Bank Market opportunities and investing in neobanks. To meet the growing demand for the product, numerous health tech companies are forming alliances with fintech firms to develop and launch new products and services.
Neo Bank Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Global Neo Bank Market Analysis, By 2028, the savings account segment is expected to command a sizable market share. To compete with the incumbent traditional bank industry, neobank platforms have unveiled and improved their products. The personal application segment is expected to grow significantly between 2022 and 2028. Customers prefer neo banking services due to their convenience and ease of use, thanks to the widespread use of smartphones.
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| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 98.35 billion |
| Market size value in 2032 | USD 3453.92 billion |
| Growth Rate | 48.5% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Neo Bank Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Neo Bank Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Neo Bank Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Neo Bank Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Neo Bank Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Neo Bank Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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