Market Size of Germany Neobanking Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | > 8.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Germany Neobanking Market Analysis
Germany's Neobanking Market is estimated to have generated USD 62 billion of transactions in 2022 and is estimated to register a CAGR of 8% for the forecast period. In the European region, German fintech is the second-largest market. Neobanking transaction value in Germany reached USD 50 billion in 2021, user penetration in Neobanking is 2.5%, and it witnessed 2 million users in 2021.
The growth of fintech in Germany didn't slow down due to the COVID-19 pandemic but boosted it. Investors pumped almost 3 times as much money into fintech based in Germany compared to 2020. The increasing adoption of mobile banking platforms and fully digital banking experience contributed significantly to the market growth. The German fintech sector broke 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.