The global neobanking market size was valued at USD 195.11 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 5,510.18 Billion by 2033, exhibiting a CAGR of 44.95% from 2025-2033. Europe currently dominates the market, holding a market share of over 31.5% in 2024. The neobanking market share is expanding, driven by the increasing consumer preference for digital and mobile-first banking solutions, favorable regulatory changes facilitating the growth of neobanks, and continuous technological advancements, particularly in artificial intelligence (AI), blockchain, and machine learning (ML).

IMARC Group provides an analysis of the key trends in each segment of the global neobanking market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on account type and application.

The market volume of neobanks worldwide was estimated at 4.96 trillion U.S. dollars in 2023, marking a notable increase compared to the previous year. According to Statista, the transaction value is expected to show a compound annual growth rate of 13.15 percent between 2024 and 2028, resulting in a projected total value of 10.44 trillion U.S. dollars by 2028. What is a neobank? Neobanks, also known as challenger banks or digital banks, are online-only banks without any physical branches that offer their services completely via mobile apps. Some of the largest neobanks increased their market value significantly in recent years, with the most valuable ones reaching a market value of over 20 billion U.S. dollars. These banks provide services such as lending, investments, savings accounts, and credit cards - just like any traditional bank - but completely online. Increasing customer base of neobanks A key indicator of the success of neobanks is their rapidly increasing customer base. Revolut, for instance, reached a massive milestone of 40 million customers in March 2024. In the U.S., the largest neobank in terms of the number of customers is Chime, which had over 21 million customers in 2023.

The Neo Banking Market is Segmented by Account Type (Business Account, Savings Account), by Services (Mobile-Banking, Payments, Money Transfers, Savings, Loans, Others), by Application Type (Personal, Enterprises, Other Applications), and by Geography (North America, Europe, Asia-Pacific, Middle East, and Africa and South America). The Report Offers Market Size and Forecast Values for the Neobanking Market in USD Billion for the Above Segments.

Global Neobanking Market Overview: The global neobanking market is estimated to reach USD XX million by 2033, exhibiting a remarkable CAGR of 24.60% during the forecast period 2023-2033. Neobanks, primarily operating digitally with minimal physical presence, are gaining traction due to their innovative products, tailored financial services, and customer-centric approach. This market is driven by the rising adoption of smartphones, the increasing need for personalized banking experiences, and the growing demand for convenient and accessible financial solutions. Key Market Dynamics: The growth of the neobanking market is attributed to several factors, including the growing millennial and Gen Z population, who are more tech-savvy and prefer digital banking experiences. The integration of artificial intelligence (AI) and machine learning (ML) technologies has enabled neobanks to provide customized services, improve financial planning, and mitigate fraud. Additionally, the increasing adoption of mobile payments, the rise of e-commerce, and the growing popularity of Buy Now, Pay Later (BNPL) services are further fueling the growth of neobanking. However, challenges such as regulatory and compliance requirements, data privacy concerns, and competition from traditional banks may restrain the market's growth to some extent. Recent developments include: In October 2022, India's First Assured Cashback Debit Cards are being introduced by Rajasthan-based Kitzone Neo Bank, which is also providing the Mini ATM and Pos Terminal., In September 2022, N26 joins Bizum as the first neo-bank. All users having a Spanish IBAN (1) can now send, receive, and request money through the well-liked mobile payments service, according to a recent announcement from the online bank. The Bizum functionality to pay at affiliated retailers will also be added to the online bank's app in early October. In order to provide the finest banking experience, N26 continues to expand its range of services and features and so becomes the first neobank to integrate Bizum into its payment methods.. Notable trends are: Increase in Digitalization of Banking Activities.

The Europe Neobanking market is segmented by account type (Business account, Savings account), by services (Mobile-banking, Payments and money transfers, savings, Loans, Others), and By Country (Germany, Spain, Italy, Russia, France, United Kingdom, and Rest of Europe), various trends, opportunities, and company profiles. The report offers Market size and forecasts for the Europe Neobanking Market in value (USD Billion) for all the above segments.

Germany Neobanking Market is segmented by account type (Business Account and Savings Account), by service (Mobile Banking, Payments & money transfer, Savings account, Loans, and others), and by application (Enterprise, Personal, and others). The market size and forecasts for Germany Neobanking Market are provided in terms of value (USD million) for all the above segments.

Neobanking Market is on a path of Growth USD 4784.54 Billion And 51.5% CAGR steady expansion

The Report Covers Neobanks Market Report in Australia and It is Segmented by Account Type (Business Account and Savings Account), By Service (Mobile Banking, Payments & Money Transfer, Savings Account, Loans, And Others), And by Application (Enterprise, Personal, And Others). The Report Offers Market Size and Forecasts for Australia Neo Banking Market in Value (USD) for all the Above Segments.

The competitive rivalry intensifies with Monzo Bank Ltd, Atom Bank PLC, Revolut Inc., and others operating in the market.

Europe neobanking market growth with a 51.4% CAGR, projected to achieve a market size of USD 1038.24 Billion by 2032.

Markntel Advisors' latest research report on the Asia Neobanking Market Covers Market Overview, Future Economic Impact, Manufacturer Competition, Supply, and Consumption Analysis.

The number of neobanking users in the UK increased significantly between 2018 and 2023, reaching 19 million in 2023. According to Statista Market Insights, the user base of the neobanking industry in the UK will expand even further in the following years, reaching 28 million in 2028.

The report covers India Neo Banking Market, Market Sales, Market Shares, Market Trends, Market Revenue Forecasting, Market Research Report, Neo Banking Saving Account Market.

The Singaporean Neobanking Market Report is Segmented by Account Type (Business Account and Savings Account), by Services (Mobile-Banking, Payments and Money Transfers, Savings, Loans, and Other Services), and by Application Type (Personal, Enterprises, and Other Application Types). The Report Offers Market Size and Forecasts for the Singapore Neobanking Market in Terms of Revenue (USD) for all the Above Segments.

The number of users in the 'Neobanking' segment of the fintech market in Finland was forecast to continuously increase between 2024 and 2028 by in total 10.3 thousand users (+28.75 percent). Notably, the number of users of the 'Neobanking' segment of the fintech market was continuously increasing over the past years.

The number of users in the 'Neobanking' segment of the FinTech market in Hungary was forecast to continuously increase between 2023 and 2028 by in total 195.9 thousand users (+52.6 percent). After the tenth consecutive increasing year, the indicator is estimated to reach 568.33 thousand users and therefore a new peak in 2028. Notably, the number of users of the 'Neobanking' segment of the FinTech market was continuously increasing over the past years.Find further information concerning the number of users in the 'digital payments' segment of the FinTech market in Ghana and the transaction value in the 'neobanking' segment of the FinTech market in Japan. The Statista Market Insights cover a broad range of additional markets.

Middle East and Africa Neobank Market is segmented By Account type (Business Account and Savings Account), By Service (Mobile Banking, Payments & money transfer, Savings account, Loans, and Others), By Application (Enterprise, Personal, and Others), and By Country (Saudi Arabia, United Arab Emirates, South Africa, Bahrain, Oman, Qatar, and Others)

Base Year 2023 Forecast Period 2024-2028 Market Growth X.XX%

The transaction value in the 'Neobanking' segment of the fintech market in Finland was forecast to continuously increase between 2024 and 2028 by in total 1 billion Euros (+71.7 percent). Notably, the transaction value of the 'Neobanking' segment of the fintech market was continuously increasing over the past years.

The neobanking market, valued at $4883.9 million in 2025, is experiencing robust growth driven by increasing smartphone penetration, the demand for seamless digital banking experiences, and a younger generation's preference for technology-driven financial solutions. The market's expansion is fueled by several key factors: the rising adoption of mobile banking apps offering convenient account management and financial services; the increasing popularity of personalized financial management tools integrated within neobanking platforms; and the emergence of innovative features like instant money transfers, AI-powered financial advice, and integrated budgeting tools. Competition is fierce, with established players like Revolut and Monzo vying for market share alongside emerging regional neobanks. Regulatory scrutiny and cybersecurity concerns represent significant challenges, demanding robust security measures and compliance frameworks. The market is segmented by application (enterprise and personal) and account type (business and savings), with the personal segment currently dominating, though enterprise adoption is anticipated to increase significantly in the coming years. Geographic expansion continues, with North America and Europe leading the market, followed by the Asia-Pacific region exhibiting strong growth potential due to increasing digital literacy and a large, underserved population. The forecast period (2025-2033) suggests continued expansion of the neobanking sector, driven by technological advancements and increasing customer demand for digital financial services. While the precise CAGR is unavailable, a conservative estimate based on current market trends and comparable fintech sectors suggests a double-digit annual growth rate. This sustained growth will be fueled by continued innovation in areas like embedded finance (integrating financial services into non-financial platforms), open banking initiatives facilitating greater data sharing and interoperability, and the expansion of neobanking services into underbanked and underserved markets globally. However, challenges such as maintaining customer trust in the face of security threats and navigating evolving regulatory landscapes will continue to shape the market's trajectory. Successful neobanks will prioritize building strong security protocols, delivering exceptional customer experiences, and proactively adapting to shifting regulatory requirements.