Global Neobanking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Neo Banking Market is Segmented by Account Type (Business Account, Savings Account), by Services (Mobile-Banking, Payments, Money Transfers, Savings, Loans, Others), by Application Type (Personal, Enterprises, Other Applications), and by Geography (North America, Europe, Asia-Pacific, Middle East, and Africa and South America). The Report Offers Market Size and Forecast Values for the Neobanking Market in USD Billion for the Above Segments.

Neobanking Market Size

Neobanking Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 24.60 %
Market Concentration Medium

Major Players

Neobanking Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Neobanking Market Analysis

The Global Neobanking Market is expected to register a CAGR of 24.60% during the forecast period.

Neobanking Market is estimated to have generated USD 4550 Billion worth of transaction value in the current year and is poised to achieve a CAGR of 24.6% for the forecast period.

A Neo bank is a sort of direct bank that solely does business online and lacks conventional physical branch networks, sometimes referred to as an online bank, internet-only bank, virtual bank, or digital bank. The financial institutions known as Neo Banks collaborate with licensed banks to do business. They use API banking to automate financial processes and give their customers access to a single dashboard where they can handle everything from accounting to reconciliations, and payments.

The Impact of COVID-19 pandemic had a favorable effect on Neobanking Apps because of the growing reliance on online banking services. Banks and businesses were collaborating to introduce new banking platforms. Financial service providers have supplied customers with digital services thanks to technological improvements and rising internet usage around the world. The pandemic had a significant impact on how firms conduct their regular financial operations. Traditionally, every banking procedure for businesses involved laborious paperwork and physical branch visits, from changing the payout approval process to opening a current account. Neo banks helped traditional banking in the wake of the virus by successfully resolving some of its operational issues, making their adoption more crucial than ever. Additionally, the rate at which neo-banks were adopted during the epidemic shows that users did so with open arms.

The entire banking procedure has been digitalized by Neo banks. Long lines are no longer necessary to process payments or withdraw cash. To open a current account or get their loan accepted, businesses don't need to visit a physical branch or fill out an endless amount of paperwork.

Neobanking Market Trends

Increase in Digitalization of Banking Activities

The establishment of neo-banks has been hastened by the increased digitization of banking activity. Government announcements of tight movement and travel limitations, which forced consumers to use digital banking systems, had a favorable impact on the uptake of the services. Neobanks, also known as "challenger banks," are capable of carrying out a variety of banking operations with ease, which has allowed them to increase the effectiveness of various banking products provided by financial institutions. Customers' entire experience has been greatly enhanced by the numerous digital options and services that neobanks offer.

The banking sector has always benefited from technology. Neo-banks are now more effective, efficient, and innovative thanks to technology. Technology goes without saying that technology has aided Neo Banks in lowering expenses and enhancing client satisfaction. The fact that neo-banks are completely digital aids in the automatic acquisition of transactional data, allowing the neo-bank to concentrate more on cutting-edge goods and services. Neo-banks have changed for the better to realize their full potential by integrating the newest technologies, such as analytics, artificial intelligence, voice interfaces, etc. Neo-banks could improve their client experience by integrating such technological advances.

Neobanking Market : Number of Active Online Banking Users Worldwide, by region, 2022

Funding In the Neo Banks is driving the market

Banks have played a dominant role in human history. However, the pace of change in this reality is accelerating as a result of new technology. New generations of neobanks, or digital banks, are now accessible. Neobanks are comparable to banks, but one of their key distinctions is that they operate entirely online. They have online tools and applications created especially to support their users. As a result, the users' financial demands are met by the neobanks. Modern users are more digitized, especially considering a large part of Gen Z is already productive adults in society. That is why neo-bank funding is increasing in different parts of the world and it is also driving the market.

Neo Banking Market : Total Funding Raised by Selected Independent Neo Banks Worldwide, 2021|

Neobanking Industry Overview

The Global Neobanking Market is fragmented. Few of the major players currently dominate the market and 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 Chime, Monzo Bank Limited, Starling Bank, N26, etc.

Neobanking Market Leaders

  1. Monzo Bank Ltd.

  2. Chime Financial Inc.

  3. Starling Bank

  4. Sofi

  5. N26

*Disclaimer: Major Players sorted in no particular order

Global Neobanking Market - Market Concentration.png
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Neobanking Market News

  • In October 2022, India's First Assured Cashback Debit Cards are being introduced by Rajasthan-based Kitzone Neo Bank, which is also providing the Mini ATM and Pos Terminal.
  • In September 2022, N26 joins Bizum as the first neo-bank. All users having a Spanish IBAN (1) can now send, receive, and request money through the well-liked mobile payments service, according to a recent announcement from the online bank. The Bizum functionality to pay at affiliated retailers will also be added to the online bank's app in early October. In order to provide the finest banking experience, N26 continues to expand its range of services and features and so becomes the first neobank to integrate Bizum into its payment methods.

Neobanking Market Report - Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Technology Advancement

    5. 4.5 Insights on Regulatory Policies

    6. 4.6 Value Chain / Supply Chain Analysis

    7. 4.7 Porters 5 Force Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers/Consumers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of Covid 19 on market


    1. 5.1 Account Type

      1. 5.1.1 Bussiness Account

      2. 5.1.2 Savings Account

    2. 5.2 Services

      1. 5.2.1 Mobile- Banking

      2. 5.2.2 Payments

      3. 5.2.3 Money- Transfers

      4. 5.2.4 Savings Account

      5. 5.2.5 Loans

      6. 5.2.6 Others

    3. 5.3 Application

      1. 5.3.1 Personal

      2. 5.3.2 Enterprise

      3. 5.3.3 Other Application

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia - Pacific

      4. 5.4.4 Middle- East & Africa

      5. 5.4.5 South America


    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Monzo Bank Ltd.

      2. 6.2.2 Chime Financial Inc.

      3. 6.2.3 Starling Banks

      4. 6.2.4 MoneyLion

      5. 6.2.5 Sofi

      6. 6.2.6 N26

      7. 6.2.7 Judo Bank

      8. 6.2.8 Tinkoff Bank

      9. 6.2.9 Nubank

      10. 6.2.10 Revolut*

    3. *List Not Exhaustive


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Neobanking Industry Segmentation

The Global Neo banking market is segmented by account type (Business account, Savings account), by services (Mobile-banking, Payments and money transfers, savings, Loans, Others), by application type (Personal, Enterprises, Other applications), and by Geography (North America, Europe, Asia-Pacific, Middle East, and Africa, and South America). The report offers market size and forecast values for the Neobanking Market in USD billion for the above segments.

Account Type
Bussiness Account
Savings Account
Mobile- Banking
Money- Transfers
Savings Account
Other Application
North America
Asia - Pacific
Middle- East & Africa
South America
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Neobanking Market Research FAQs

The Global Neobanking Market is projected to register a CAGR of 24.60% during the forecast period (2024-2029)

Monzo Bank Ltd., Chime Financial Inc., Starling Bank, Sofi and N26 are the major companies operating in the Global Neobanking Market.

The report covers the Global Neobanking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Global Neobanking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The target market for neo-banking primarily includes Tech-Savvy Millennials and Gen Z, Digital Natives, Mobile-First Users, Frequent Travelers and Entrepreneurs.

The factors driving the Neo-banking market are a) Increase in Digitalization of Banking Activities b) Increasing the demand for neo-bank funding

Global Neobanking Industry Report

The global neo-banking market is poised for significant growth, driven by rising customer demand for convenience in the banking sector and an increase in digital wallets. Neobanks, which offer banking solutions without physical branches or offices, validate their services in real-time through online channels and mobile sites. The market is further propelled by an increasing number of partnerships between banks and organizations to launch neobank platforms, aimed at enhancing customer experience, safety, and stability. Neobanking is particularly popular among retail customers and Small- and Medium-sized Enterprises (SMEs) due to features like free debit cards, digitized account opening, personal finance advisory, instant payments, e-bill generation, invoice management, account integration, and GST-compliant invoicing. Despite offering a limited range of products compared to traditional banks, the neo-banking model's low-cost structure, easy accessibility, and advanced services are attractive. According to Mordor Intelligence™ Industry Reports, the Global Neobanking market share, size, and revenue growth rate are promising. The analysis includes a market forecast outlook and a historical overview. Get a sample of this industry analysis as a free report PDF download.

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Global Neobanking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)