Neobanking Market

Neobanking Market Analysis by Account Type (Neobanking for Business Accounts, Savings Account), by Application (Personal Use, Enterprises), by Region - Global Forecast 2022-2032

Analysis of Neobanking market covering 30+ countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Neobanking Market Growth Outlook for 2022-2032

The global sales of neobanking garnered a market value of US$ 45 Billion in 2021, and is expected to reach US$ 67 Billion by 2022. From 2022 to 2032, the market is likely to register a CAGR of 44.15% by accumulating a market value of US$ 2,595 Billion through the assessment period 2022-2032.

Convenience of using neobanking along with its contactless feature is driving the demand for neobanks. Moreover, technological advancements like artificial intelligence and machine learning are playing a key role in increasing the demand for neobanking.

Report Attributes


Expected Market Value in 2022

US$ 67 Billion

Projected Market Value for 2032

US$ 2,595 Billion

Global Growth Rate (2022-2032)

44.15% CAGR

Key Companies Profiled

  • Atom Bank PLC
  • Ubank Limited
  • Simple Finance Technology Corp.
  • Fidor Bank Ag
  • Movencorp Inc.
  • Monzo Bank Ltd.
  • Mybank
  • N26
  • Revolut Ltd.
  • Webank, Inc.

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Demand Analysis of Neobanking from 2015 to 2021 Vs Market Projections for 2022 to 2032

From 2015 to 2021, demand for neobanking services flourished at an impressive 30% CAGR, as per Fact.MR- a market research and competitive intelligence provider. Growth of neobanks is experiencing a major incline amid extensive reliance on virtual platforms for conducting various types of transactions, attributed to widespread digitization and integration of artificial intelligence.

The concept has acquired even more importance during the COVID-19 pandemic, as enterprises have been migrating to the virtual space, integrating such advancements as IoT, machine learning, cloud computing, electronic record keeping and big data analytics. Moreover, the reluctance to visit conventional banks for fear of contracting the virus has also impelled prospects for neobanks,

Neobanks are focusing on providing 24*7 services to customers by integrating technology into the same. Moreover, transparency in transactions along with growing inclination from enterprises to use neobanks is bolstering the demand for the same. Thus, the sales of neobanking are expected to exceed US$ 2,595 Bn by registering a staggering double-digit CAGR of over 44% in the forecast period 2022-2032.

Artificial Intelligence and Machine Learning Positively Influencing Demand for Neobanks?

Penetration of smartphones along with a good internet connection is spurring the growth of dependency on technology. This has led to an increase in people depending on neobanks. As neobanks do not have any physical branch present, they offer relief in skipping queues and getting transactions done within no time.  

Furthermore, the ease of using neobanks through different devices especially through smartphones is playing a key role in early adoption of neobanks. Moreover, neobanks are focusing on integrating artificial intelligence and machine learning.

This, in turn, will provide 24*7 services to customers irrespective of their geographical locations. Another key reason for increasing use of neobanks is the partnerships and collaborations between neobanks with traditional banks. This has helped customers to gain confidence to use neobanks.

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Contactless Feature a Blessing in the Time of COVID-19 for Neobanks?

The onset of the COVID-19 pandemic set restrictions for various countries across the world. This hampered businesses on a large scale and bank transactions got stuck due to no physical contact. Thus, the demand for neobanks grew by leaps and bounds in the pandemic. Moreover, small and medium sized enterprises showed a growing inclination towards using neobanks as it helped in keeping track on transactions.

Digitally led neobanks have made work easier by going paperless. As neobanks do not have any physical branch, the hassle of creating an account by waiting for longer period is deleted. Moreover, neobanks contactless feature helped people to stay safe at home by not affecting their income revenues. Furthermore, growing income scale along with millennials and generation-Z’s preference to use smartphones to make life easy has made neobanks gain popularity.

Country-wise Analysis

Early Adoption of Neobanking Spurring Growth in Europe?

Europe has been at the forefront of adapting technological innovations and changing bank systems. Companies in the U.K. and Germany are offering complete contactless platforms. This, in turn, has attracted consumers to use neobanking as services are available 24*7.

Moreover, existing banks are collaborating with neobanking platforms to offer easy and convenient services to consumers. Thus, Europe is expected to hold more than 30% market share for neobanking.

Convenience Playing Key Role in Using Neobanking Platforms in Asia Pacific?

Rapid urbanization and increasing population in countries like India and China is playing a key role in the increasing usage of neobanking. Long queues at banks, pending cases of cheque clearances and delays due to lengthy procedures has shifted people’s interest to using neobanking. 

Furthermore, penetration of smartphones and 4G network in the region is driving the dependency on neobanking. Moreover, growing number of businesses along with inclination of millennials and generation Z to use neobanking is accelerating the growth of neobanking platforms. Thus, Asia Pacific is expected to hold more than 25% market share for neobanking in the assessment period.

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Category-Wise Insights

Transparency Driving the Demand for Neobanking for Business Accounts?

Increase in the number of start-ups, entrepreneurships and businesses across the globe is fueling the growth of neobanking. Most business are preferring online gateways for payments. This has led to businesses relying on neobanking platforms as they are operational most of the time and have no barriers in regard to geographical locations.

Furthermore, neobanking offers transparency as every transaction is recorded and can be used as evidence in instances of debunk of payments. Thus, neobanking is largely used by businesses to use business accounts. Due to the aforementioned reasons, by account type, business accounts are expected to hold more than 40% market share for neobanking.

Management of Transactions Attracting Enterprise to Use Neobanking?

Neobanking has proved to be a blessing for medium and small sized enterprises. As certain traditional banks do not provide services to small scale enterprises, maintaining transactions became difficult. Moreover, neobanking has made it easier to manage transactions, credit and assets.

In addition, enterprises are leveraging the usage of neobanking as neobanks provide innovative products along with constant customization without the need of human intervention. Furthermore, excellent customer service is also playing a key role in the adoption of neobanking by enterprises. Thus, enterprises are expected to hold more than 50% market share for neobanking.

Competitive Landscape

  • In October 2021, Atom Bank PLC celebrated hitting 1 Bn in lending to SMEs. The company is focusing on offering fast, transparent and valuable customer services.

Key Segments Covered in the Neobanking Industry Report

  • By Account Type

    • Business Accounts
    • Savings Account
  • By Application

    • Personal Use
    • Enterprises
    • Other Applications

- FAQs -

How much is the neobanking industry worth?

As of 2021, the market for neobanking reached nearly US$ 45 Bn

What is the anticipated market value for the neobanking industry in 2022?

As of 2022, the neobanking market is expected to be valued at US$ 67 Bn, as per Fact.MR

What was the value CAGR for the neobanking industry from 2015 to 2021?

From 2015 to 2021, the neobanking landscape flourished at a CAGR of 30%

At what rate will the neobanking industry grow from 2022-2032?

The neobanking industry is expected to surpass a CAGR of 44.15% from 2022-2032.

How much is the neobanking market like to be valued by 2032?

The neobanking market is expected to reach nearly US$ 2,595 Bn by 2032

What are the key trends driving neobanking sales?

Integration of artificial intelligence and machine learning are the key trends driving neobanking sales.

Who are the prominent neobanking market players?

Atom Bank PLC, Ubank Limited, Simple Finance Technology Corp., Fidor Bank Ag, Movencorp Inc., Monzo Bank Ltd., Mybank, N26, Revolut Ltd., Webank, Inc are prominent neobanking market players.

Which type of account is expected to hold the highest share for sales?

Business account is expected to gain more than 50% market share for neobanking market.

Which type of application is expected to hold the highest share for sales?

Enterprises are expected to hold more than 40% market share for neobanking market.

How much is the Europe neobanking industry worth?

The neobanking industry is expected to possess nearly 30% market share throughout Europe.

How much is the Asia Pacific neobanking industry worth?

The neobanking industry is expected to possess nearly 25% market share throughout Asia Pacific.

Neobanking Market

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