Neobanking Market size is slated to surpass USD 600 billion by 2028, according to a new research report by Global Market Insights Inc.
The growing adoption of smartphones and internet technology across the globe is likely to boost the neobanking industry growth. Moreover, the governments of different countries, such as Canada, India, and the UK, are actively investing to accelerate digitalization, creating ample growth opportunities for the market. For instance, in August 2021, the government of Canada invested USD 44 billion for driving the economic growth of the country and facilitating affordable broadband internet and 5G connectivity for all Canadians.
Growing popularity of digital only banks
The savings account is poised to grow at around 45% CAGR through 2028 owing to the increasing popularity of digital banking platforms as they offer low interest rates in opening new savings account and customized banking services. Various companies are developing partnerships to launch savings account for their customers, which is propelling the industry statistics.
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Browse key industry insights spread across 260 pages with 254 market data tables and 39 figures & charts from the report, “Neobanking Market Size By Account Type (Business Account, Savings Account), By Service (Mobile Banking, Payments & Money Transfer, Checking/Savings Account, Loans), By Application (Enterprises, Personal), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 –2028”, in detail along with the table of contents:
Rising demand for convenience during loan origination and approval
The loans service held a market share of over 10% in 2021 led by the growing need to enhance customer experiences. The increasing trend of partnerships and alliance is providing significant growth opportunities to the market. For instance, in January 2022, Invoid partnered with Credenc to develop neobank for students. Through this partnership, Invoid provided neobanking services to Credence’s talented students to meet their higher education needs.
Growing digital fintech infrastructure globally
The personal application accounted for about USD 15 billion in 2021 due to the growing digitalization in the fintech sector. Moreover, the increasing trend of online shopping and high penetration of smartphones are fueling the market demand.
Adoption of digital banking platform across Asia Pacific
APAC neobanking market size is expected to generate nearly USD 180 billion revenue by 2028 impelled by changing customer preferences. The growing fintech sector in major countries, such as China, India and Japan, is another factor supporting the industry statistics.
Asia Pacific is a highly lucrative market for the adoption of 5G and digital banking technologies propelled by numerous government initiatives for large-scale digitalization of urban infrastructure in countries. However, the companies operating in region are extensively developing advanced and innovative neobanking platforms for their customers.
Focus on developing advanced digital services through acquisition to gain a competitive advantage
The industry participants are developing and designing more advanced solutions to meet the demands of the customers. They are focusing on developing advanced and integrated neobanking solutions & services.
Prominent players functioning across neobanking market include Atom Bank Plc, BBVA S.A., BMTX, Inc., Chime Financial, Inc., Citigroup Inc., Dave, Inc., Deutsche Bank AG, Digibank (DBS Bank Ltd.), Equitable Bank, HSBC Holdings Plc, Monzo Bank Ltd., N26 GmbH, Neo Financial Technologies Inc, Nubank S.A., OakNorth, Orange Bank, OTP Bank Group, Paytm Payments Bank, Revolut Ltd., SoFi Technologies, Inc., Sopra Steria Group, Starling Bank, Tangerine Bank, Tinkoff Bank, and Upgrade, Inc.