Market Trends of Asia-Pacific Neo Banking Industry
This section covers the major market trends shaping the APAC Neo Banking Market according to our research experts:
Number of Customers for Neo Banking is Raising Significantly in the Region
Not only because of favorable demographics and supporting policies but also because of the development of tech giants and the expansion in payment-capable IoT devices and accompanying services, Asia Pacific has become one of the leading hotspots of the fintech revolution. According to Finbold data, neo banks in the APAC area added 134.8 million customers in 2021 H1, increasing the total number to 437.2 million, up 44.57 percent from the figure of 302.4 million in 2020. In 2019, there were 239.3 million customers in the region's neo banks. The number of new customers acquired by APAC neo banks increased by 113.62 percent between 2020 and 2021, from 63.1 million to 134.8 million. Between 2018 and 2019, there was a staggering 233 million new customers added to the neo banking market of the region.
India is Leading in Terms of Number of Neo Banks Presence in the Region
There are currently 68 neo banks in Asia-Pacific. While this figure lags behind the European and US markets, it is simply a sign of a less developed sector that is likely to grow at a rapid pace once regulations are clearly defined. With 14, India is the leading country in terms of neo banks. Australia has also the largest number of neo banks in the region with 13 neo banks, while in Eastern Asia, Hong Kong has the biggest number of digital banks with 12. China, on the other hand, is home to only four neo banks, despite being the global leader in digital banking with 220 million neo bank customers. With the rise of neo banks in the region, a number of traditional banks have taken distinctive initiatives to further digitalize their goods and build appealing propositions targeted at retaining and attracting consumers.
