Neobanking Market Size Worth $2,048.53 Billion By 2030

 Neobanking Industry Overview

The global neobanking market size is expected to reach USD 2,048.53 billion by 2030, growing at a CAGR of 54.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. Factors, such as a faster process of loan approval and funding, compared to traditional banks, with low-interest rates via banking applications are driving the growth of the market. Increasing technological advancements, such as Artificial Intelligence (AI) and IoT, in online banking platforms, are also expected to boost the market growth over the forecast period. The rising popularity of mobile-based applications for making international fund transfers and online payments is also propelling the market growth. Governments in various countries are making efforts to promote internet services across rural areas.

Furthermore, leading players are offering customized services via mobile applications to help customers and enterprises manage their finances, savings, and spendings efficiently. Such factors bode well for the growth of the market. Factors, such as the accelerated expansion of the customer base, innovative revenue generation & modernization models, and increasing product launches globally, are expected to significantly contribute to the market growth over the forecast period. Numerous financial service providers are launching services through mobile apps to make payments faster. For instance, in November 2020, Revolut announced the launch of Google Pay for its customers in Greece, Bulgaria, Estonia, Austria, Hungary, Lithuania, Latvia, Portugal, the Netherlands, and Romania to make online and in-store payments fast and simple.

The outbreak of the COVID-19 pandemic positively impacted the global market on account of the rising dependency on online banking platforms for making payments. Numerous citizens and enterprises around the world preferred simple, safe, and helpful ways to adopt contactless payment technologies. The market players are also responding to the changing requirements of the enterprises and are diversifying their solutions and services to manage the taxing, budgeting, and accounting for small and medium-sized enterprises at lower costs.


Neobanking Market Segmentation

Grand View Research has segmented the global neobanking market on the basis of account type, application, and region:


Based on the Account Type, the market is segmented into Business Account, and Savings Account.

  • The business account segment dominated the market in 2022 and held the largest revenue share of more than 65.0%. Various businesses across the globe are adopting neobanking as the preferred way of payment for bulk payouts. Moreover, the ability of the neobank platforms to offer simplicity and ease of processes in disbursals to vendors and other stakeholders by reducing human intervention is expected to further drive the growth of the segment.
  • Numerous health tech companies are entering into partnerships with fintech companies to develop and launch products and services to cater to the growing demand for the product. For instance, in November 2021, Fedo, a health tech company, announced the launch of a health savings account named Fedo HSA in partnership with Open, a neobank. 

 


Based on the Application, the market is segmented into Enterprises, Personal, and Others.

  • The enterprises' segment dominated the market in 2022 and accounted for more than 51.0% share of the global revenue. These platforms offer enterprise-related services, such as credit management, transaction management, and asset management. Various neobank service providers for SMEs are making efforts to enhance their product portfolio through acquisitions aimed toward providing a better customer experience.
  • This acquisition was aimed at strengthening Open’s cloud-native enterprise offering named BankingStack, through which, Open has deployed SME banking platforms for 17 banks. The personal application segment is anticipated to witness the fastest growth over the forecast period. The high penetration rate of smartphones has enabled customers to widely opt for neobanking services owing to convenience and ease of use. 

 

Key Companies & Market Share Insights

Vendors are focusing on launching their mobile app-based banks. The major banks have been slower in terms of the adaptation to new technologies and changing customer needs; however, start-up digital banks have been amassing a large user base actively using their services. Moreover, these start-ups are focusing on developing services that can be easily integrated with business processes. Neobanks are challenging the universal banking model with their personalized insights, lower costs, user-friendly interfaces, predictive intelligence, easy accessibility, and simplified processes.

These banks are prioritizing customer needs and structuring their services and products in a way that is strengthening their foothold in the market. Market players are particularly focusing on mergers & acquisitions, partnerships, collaborations, and product launches to strengthen their foothold in the market. For instance, N26 announced the extension of its partnership with TransferWise, a technology leader for international payments, to offer international money transfers in over 30 currencies through the N26 app. Some prominent players in the global neobanking market include:

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

 

Order a free sample PDF of the Neobanking Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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