Market Size of Global Neobanking Industry
| 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_-_Copy.webp)
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
