Market Size of Australia Neobanking Industry
| Study Period | 2024-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 32.30 Billion |
| Market Size (2029) | USD 48.25 Billion |
| CAGR (2024 - 2029) | 8.36 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Australia Neobanking Market Analysis
The Australia Neobanking Market size in terms of transaction value is expected to grow from USD 32.30 billion in 2024 to USD 48.25 billion by 2029, at a CAGR of 8.36% during the forecast period (2024-2029).
The fintech sector matures and rebounds in Australia, with investments coming from a diverse spectrum of sub-sectors and investor groups. Neobank activity continued, with Judo Bank successfully launching on the ASX and Alex Bank completing a 13.28 USD million (AUD 20 million) investment after acquiring its restricted banking license (RADI). Neo banks have digitalized the entire banking procedure. Long lines are no longer necessary to process payments or withdraw cash. To open a current account or get their loan accepted, businesses can skip a physical branch or fill out endless paperwork.
Most notably, Xinja, which got a banking license in 2019, shut down its banking activities due to COVID-19 pandemic issues and failed fundraising from a Dubai-based investment fund. As a result, the Australian prudential regulation body has raised regulatory standards for Neobanks seeking a banking license, thereby resuming Neobanking activity in the sector.
Three new banks were awarded licenses by APRA in the run-up to COVID-19, signaling potentially intriguing new developments in the sector. Neobanks are online banks that offer alternatives to traditional banking. However, they must create a customer base and generate capital, which may have been challenging while international economies adjusted to the global health crisis.
