Germany Neobanking Market – Growth, Trends, COVID-19 Impact and Forecast (2022-2027)

Germany Neobanking Market is segmented by Account type (Business Account and Savings Account), by Service (Mobile Banking, Payments & money transfer, Savings account, Loans, and Others), and by Application (Enterprise, Personal, and Others).

Market Snapshot

Germany Neobanking Market
Study Period: 2018-2027
Base Year: 2021
CAGR: >4 %

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Market Overview

German fintech is the second-largest market in the European region. Neobanking transaction value in Germany reached USD 50 billion in 2021 and is about to cross USD 80 billion in 2022, and the average transaction value per user is USD 27000, User penetration in Neobanking is 2.5%, and it witnessed 2 million users in 2021.

The coronavirus pandemic didn’t slow down the growth of fintech in Germany and may have even boosted it. Investors pumped almost 3 times as much money into fintech based in Germany compared to 2020. Increasing adoption of mobile banking platforms and fully digital banking experience contribute significantly to the market growth. The German fintech sector breaks the 900 mark for the first time with 946 start-ups. Investment start-ups showed the strongest growth of all top fintech categories.

N26 is the first Neobank founded in Germany, and it is one of the largest European fintech companies. It leverages AI to organize a user’s expenses by category and make it easier to track spending. N26 takes an average of 170,000 new customers a month.

Scope of the Report

Neobanks is a bank that operates online without having a physical presence, it is part of fintech that provides digital and mobile-first services like payments, debit cards, money transfers, lending, and more. The German neobanking market is segmented by account type (business account and savings account), by service (mobile banking, payments and money transfer, savings account, loans, and others), and by application (enterprise, personal, and others).

By Account
Business account
Savings account
By Service
Mobile Banking
Payments & Money transfer
Savings account
By Application

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Key Market Trends

Rising Investment in Fintech in Germany Driving the Market

The German fintech market grew by approximately 120% over the last 7 years. Germany currently has around 950 active start-ups in the fintech sector. 28% are in Berlin, while 11% are based in Frankfurt, despite Frankfurt being the country’s financial hub. Berlin gained popularity as a fintech hub. In 2020, Berlin fintech start-ups received a whopping USD 360 million in financing, which amounted to 64% of total investments in the German sector. Bavaria comes in as a far second at USD 130 million, 24% of total investment.

Since 2018, fintech has made up 10% of all new start-ups in Germany, and the sector has become the second-greatest start-up activity in the country’s start-up ecosystem after information and communication technology. The innovative technologies and disruptive business models are removing market entry and expansion barriers, with German FinTechs looking to expand beyond Germany and international FinTechs also entering the German market. Almost three-quarters of foreign FinTechs are active in the banking and lending, payments, and enabling processes and technology segments.

Germany Neobanking Market

Growing Penetration of Smartphones and Increasing Digitalization Boosted the Neobanking Market.

Digitalization is spreading across all industries, particularly financial transactions, and has expanded to the banking industry. Mobile payments or payments made through portable electronic devices, like a cell phone, a smartwatch, or a tablet, are an alternative to using cash, checks, or physical debit and credit cards.

Total transaction value in the Digital Payments segment crossed USD 200 billion in 2021 and growing at a significant rate, the country has had the highest number of digital commerce users within Europe in 2020. As mobile payment solutions become increasingly widespread and integrated within social media platforms, Germany is expected to see a specifically high increase in mobile POS payments.

Germany Neobanking Market

Competitive Landscape

The report covers major players operating in the German neobanking market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including N26, Fidor Bank, Bunq and Vivid, etc.

Recent Developments

  • On January 26, 2021, N26 partnered with Allianz to expand its travel insurance coverage for its users to include pandemic-related claims.
  • On April 07, 2021, Pockid, a German neobank for Gen Z, partnered with PPS. This service provides young people with a new way to handle their money through an easy-to-use iOS and Android application, with a Mastercard debit card for spending both online and offline.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Various Regulatory Landscape

    5. 4.5 Insights on impact of technology and innovation in the market

    6. 4.6 Industry Attractiveness - Porters' Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitutes

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of COVID-19 on the Market


    1. 5.1 By Account

      1. 5.1.1 Business account

      2. 5.1.2 Savings account

    2. 5.2 By Service

      1. 5.2.1 Mobile Banking

      2. 5.2.2 Payments & Money transfer

      3. 5.2.3 Savings account

      4. 5.2.4 Loans

      5. 5.2.5 Others

    3. 5.3 By Application

      1. 5.3.1 Enterprise

      2. 5.3.2 Personal

      3. 5.3.3 Others


    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 N26

      2. 6.2.2 Insha

      3. 6.2.3 Fidor Bank

      4. 6.2.4 Penta

      5. 6.2.5 Soldo

      6. 6.2.6 Bunq

      7. 6.2.7 Vivid

      8. 6.2.8 Nuri

      9. 6.2.9 Curve

      10. 6.2.10 Tomorrow

      11. 6.2.11 Wise

      12. 6.2.12 Monese

      13. 6.2.13 Revolut*

    3. *List Not Exhaustive


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Frequently Asked Questions

The Germany Neobanking Market market is studied from 2018 - 2027.

The Germany Neobanking Market is growing at a CAGR of >4% over the next 5 years.

N26, Fidor Bank, Bunq, Insha, Soldo are the major companies operating in Germany Neobanking Market.

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