Westford USA, April 14, 2023 (GLOBE NEWSWIRE) — SkyQuest projects that the Neobanking market will attain a value of USD 2229.03 billion by 2030, with a CAGR of 53.4% over the forecast (2022-2030). The growing number of partnerships between banks and organizations to launch neobanking platforms is also accelerating market growth. This type of collaboration aims to provide a better customer experience as well as increased safety and stability. For instance, in April 2021, Google Pay co-creators announced the launch of Fi, a neobank, in collaboration with the Federal Bank to provide an instant savings account with debit cards for salaried millennials. Technological advancements and a significant increase in internet penetration globally enable financial service providers to offer novel digital services to customers. Furthermore, the rise of digital wallets has increased demand for online banking platforms.
According to the SkyQuest’s, Vendors are concentrating on the launch of mobile app-based banks. The major banks have been slower to adapt to new technologies and changing customer needs; however, start-up digital banks have combined a large user base that actively uses their services. Furthermore, these start-ups are concentrating on creating services that can be easily integrated into business processes. With personalized insights, lower costs, user-friendly interfaces, predictive intelligence, easy accessibility and simplified processes, neobanks are challenging the universal banking model.
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- Pages – 242
- Tables – 62
- Figures – 65
Neobanking is a financial service that provides digital banking and a unified customer experience via a mobile application. To protect customer data and prevent malware attacks, the application generally employs 2-factor authentication (2FA), biometric verification, role-based access control (RBAC), encryption technology and other security measures. Neobanking can consolidate the entire financial portfolio onto a single platform because it does not have physical branches. Furthermore, it provides simple account setup, seamless international payments, a user-friendly interface, low operating costs, value-added services, and real-time transactions. As a result, it is gaining ground on traditional banking services around the world.
Prominent Players in Neobanking Market
- Atom Bank PLC
- Fidor Bank Ag
- Monzo Bank Ltd.
- Movencorp Inc.
- Revolut Ltd.
- Simple Finance Technology Corp.
- Ubank Limited
- Webank, Inc.
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Business Account Segment Dominate the Market Due to Neobanks Which Are Often More Agile and Technologically Advanced Than Traditional Banks
In 2021, the business account segment dominated the market, accounting for more than 66.0% of total revenue. Various businesses around the world are embracing neobanking as the preferred method of payment for large payments. Furthermore, the ability of neobank platforms to provide simplicity and ease of processes in expenses to vendors and other stakeholders by reducing human intervention is expected to drive segment growth.
Europe dominated the global market, accounting for more than 30.0% of global revenue. The development of numerous innovative technologies and the early adoption of new technologies can be attributed to the regional market’s growth. Furthermore, companies are focusing on the launch of product platforms and the formation of partnerships in order to strengthen their market position. Several regional neobanks have established brick-and-mortar distribution channels in order to establish an O2O type of distribution, thereby creating market growth opportunities.
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Enterprises Segment Dominated the Growth Due to the High Adoption Rate of AI Technology
In 2021, the enterprises segment dominated the market, accounting for more than 53% of global revenue. These platforms provide business-related services like credit management and asset management. Several neobank service providers for SMEs are working to expand their product portfolios through acquisitions in order to provide a better customer experience. For instance, in December 2021, Open, a provider of SME Neobanking platforms, announced the purchase of FININ, a consumer neobanking platform, for USD 10 million in cash and stock.
Over the forecast period, Asia Pacific is expected to be the fastest-growing regional market. The increasing use of smartphones, combined with the growing adoption of internet services, is expected to accelerate market growth. Furthermore, factors such as simple and convenient banking services, as well as the rise of digital-only banks in countries such as Japan, India and China, are expected to contribute to the growth of the Asia Pacific regional market during the forecast period.
A comprehensive analysis of the major players in the Neobanking market has been recently conducted in a report. The report encompasses various aspects, including collaborations, mergers, innovative business policies, and strategies, providing valuable insights into key trends and breakthroughs in the market. Furthermore, the report scrutinizes the market share of the top segments and presents a detailed geographic analysis. Lastly, the report highlights the major players in the industry and their endeavors to develop innovative solutions to cater to the growing demand.
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Key Developments in Neobanking Market
- In April 2021, Google Pay co-creators announced the launch of Fi, a neobank, in collaboration with the Federal Bank to provide salaried millennials with an instant savings account and debit cards.
- In November 2021, Fedo, a health tech company, announced the launch of a health savings account called Fedo HSA in collaboration with Open, a neobank. Fedo HSA intended to offer combined accounts that help customers meet their required spendings through a combination of insurance, smart savings, and line of credit bundled in savings accounts with health credit and debit card features through this partnership.
Key Questions Answered in Neobanking Market Report
- What specific growth drivers are projected to impact the market during the forecast period?
- Can you list the top companies in the market and explain how they have achieved their positions of influence?
- In what ways do regional trends and patterns differ within the global market, and how might these differences shape the market’s future growth?
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