Neobanking Market Size

Neobanking Market Size

Neobanking Market size exceeded USD 45 billion in 2021 and is anticipated to grow at a CAGR of over 45% from 2022 to 2028. The market growth is attributed to the sophisticated digital advisory services offered by such banks. By 2021, neobanks were offering around ten features on average compared to only four functions provided by traditional banks. These four features, search, view balances, view transactions, and customize notifications, only provide basic insights for users, which has initiated a seismic consumer behavior change toward neobanking services.

Although COVID-19 has taken a toll on the global economy, it has catalyzed the digital transformation of various industries. The market is amongst the many business models that flourished during COVID-19. The need to embrace neobanks became more urgent than ever as they successfully solved the practical problems of traditional banking (physical branch visits, long queues, and handling cash) in the wake of the pandemic. Several end-use markets have witnessed an uptick in neobanking engagement due to increased acceptance during the lockdown. These include both enterprise and personal consumers.