Neobanking Market Growth, Challenges, Opportunities And Emerging Trends 2023-2032

Market Overview:

The Neobanking market size is projected to grow from USD 100.7 Billion in 2023 to USD 3009.90 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 52.90% during the forecast period (2023 – 2032).Neobanks are digital and app-based banks providing services like checking & savings accounts, money transfer, loans and credit cards. Neobanks aim to provide superior digital experiences and facilitate services through AI-driven analytics and personalization.

Based on Account Types, the neobanking market is segmented into Business Account and Savings Account. The savings account segment is expected to grow at the highest CAGR during the forecast period, due to attractive interest rates offered by neobanks on savings accounts.

Based on Applications, the market is categorized into Banking, Financial Services, Insurance, and Others (loan payments, money transfers etc). The banking segment accounted for the largest market share in 2020.

Key Market Segments

By Account Type:

• Business Account
• Savings Account

By Application:

• Banking
• Financial Services
• Insurance
• Others (Loans, money transfers etc)

Key Companies

Some of the major players operating in the neobanking market include:

• Atom Bank
• Movencorp
• Simple Finance Technology
• Fidor Bank
• N26
• Pockit
• Ubank
• Monzo Bank Limited
• MyBank
• Holvi Bank

These companies are focusing on new mobile-centric strategies like AI-based financial advice, interactive interfaces, hyper-personalization and integration of banking services with social media platforms to enhance customer experience.

Market Drivers

The key factors driving the neobanking market growth are:

• Need for Better Digital Experience: Neobanks provide seamless mobile-first experience. AI, ML and data analytics provides personalized banking and real-time insights.
• Attraction toward Digital Platforms: Tech-savvy customers are shifting toward digital platforms for their banking needs driven by convenience and ease of use.
• Rise in Smartphone Penetration: Increased smartphone and internet penetration is increasing the adoption of digital banking services.
• Reduced Operating Costs: Neobanks have lower overheads than traditional banks by eliminating physical branches and infrastructure costs.
• Segment-targeted Offerings: Neobanks offer customized offerings tailored to millennials, small businesses and underbanked consumers.

Browse In-depth Market Research Report (128 Pages, Charts, Tables, Figures) on Neobanking Market-

https://www.marketresearchfuture.com/reports/neobanking-market-12100

Regional Insights

North America accounted for the largest market share in 2020. Asia-Pacific is expected to grow at the highest CAGR during 2021-2026, driven by rising tech adoption in countries like China, India, Japan and South Korea.

Industry Latest News

In October 2022, PayPal launched PayPal Zettle, a full in-store and online point-of-sale solution for SMEs in the UK. In September 2022, Chase launched a digital bank account and savings account with metaverse experiences. In August 2022, Nubank launched cryptocurrency trading for its users in Brazil.

The neobanking market is expected to witness significant growth over the forecast period, driven by the need for enhanced digital banking experiences, rising smartphone penetration, and favorable demographic trends.