The Neobanking Market Report is Segmented by Account Type (Business Account, Savings Account), Services (Mobile-Banking, Payments, Money-Transfers, Savings Account, Loans, Others), Application (Personal, Enterprise, Other Application), and Geography (North America, South America, Europe, Asia-Pacific, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

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).

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 195.11 Billion
Market Forecast in 2033	USD 5,510.18 Billion
Market Growth Rate 2025-2033	44.95%

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.

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.

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), by Geography (North Germany, South Germany, East Germany, West Germany, and Central Germany). The Market Forecasts are Provided in Terms of Value (USD).

The market volume of neobanks worldwide was estimated at **** 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 ***** percent between 2024 and 2028, resulting in a projected total value of ***** 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 ** 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 ** million customers in March 2024. In the U.S., the largest neobank in terms of the number of customers is Chime, which had over ** million customers in 2023.

The Europe Neobanking Market Report Segments the Industry Into by Account Type (Business Account, Savings Account), by Services (Mobile Banking, Payments, Money Transfers, Savings Account, Loans, Other ), by Application (Personal, Enterprise, and Other Application), and by Country (United Kingdom, Germany, France, Spain, Italy, and Other). The Market Forecasts are Provided in Terms of Value (USD).

Europe Neobanking Market was valued at USD 28.14 Billion in 2024 and is expected to reach USD 88.25 Billion by 2030 with a CAGR of 21.05% during the forecast period.

Pages	133
Market Size	2024: USD 28.14 Billion
Forecast Market Size	2030: USD 88.25 Billion
CAGR	2025-2030: 21.05%
Fastest Growing Segment	Savings Account
Largest Market	Germany
Key Players	1. N26 Bank AG 2. Vivid Money S.A. 3. Ma French Bank S.A. 4. Orange Bank & Trust Company 5. Lunar Bank A/S 6. Revolut Ltd 7. Bnext Group 8. Holvi Payment Services Ltd 9. Monzo Bank Limited 10. Atom Bank Plc

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.

Revenue from the global neobanking market is expected to reach US$ 97.45 billion in 2024 and increase swiftly at 35.6% CAGR to settle at US$ 2,048.29 billion by the end of 2034.

Report Attribute	Detail
Neobanking Market Size (2024E)	US$ 97.45 Billion
Forecasted Market Value (2034F)	US$ 2,048.29 Billion
Global Market Growth Rate (2024 to 2034)	35.6% CAGR
North America Market Share (2024E)	33%
East Asia Market Growth Rate (2024 to 2034)	37% CAGR
Saving Accounts Segment Value (2034F)	US$ 1,065.11 Billion
Enterprises Segment Value (2034F)	US$ 1,167.53 Billion
Key Companies Profiled	Atom Bank PLC; Ubank Limited; Simple Finance Technology Corp.; Fidor Bank Ag; Movencorp Inc.; Monzo Bank Ltd.; MyBank; N26; Revolut Ltd.; Webank, Inc.; Albo; Green Dot Corporation; Fintech Farm; Bunq.

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 14.31 Billion
Growth Rate (2024 to 2034)	35.3% CAGR
Projected Value (2034F)	US$ 294.22 Billion

Attribute	Japan
Market Value (2024E)	US$ 6.62 Billion
Growth Rate (2024 to 2034)	37.2% CAGR
Projected Value (2034F)	US$ 156.57 Billion

Category-wise Insights

Attribute	Savings Account
Segment Value (2024E)	US$ 46.78 Billion
Growth Rate (2024 to 2034)	36.7% CAGR
Projected Value (2034F)	US$ 1,065.11 Billion

Attribute	Enterprises
Segment Value (2024E)	US$ 52.62 Billion
Growth Rate (2024 to 2034)	36.3% CAGR
Projected Value (2034F)	US$ 1,167.53 Billion

Neobanking Market Outlook

According to our latest research, the global neobanking market size reached USD 142.5 billion in 2024, exhibiting robust growth driven by digital transformation across the financial sector. The market is expected to expand at a CAGR of 47.8% from 2025 to 2033, reaching a forecasted value of USD 2,990.4 billion by 2033. This remarkable growth is fueled by increasing smartphone penetration, evolving consumer preferences for digital-first banking solutions, and the proliferation of fintech innovations. As neobanking continues to disrupt traditional banking models, its ability to offer seamless, customer-centric, and cost-effective services remains a pivotal growth factor in the global financial landscape.

One of the primary growth drivers for the neobanking market is the widespread digitalization of financial services, which has dramatically altered how consumers and businesses interact with banks. The adoption of advanced technologies such as artificial intelligence, machine learning, and blockchain has enabled neobanks to provide hyper-personalized banking experiences, automate routine processes, and ensure robust security measures. The convenience of 24/7 access, minimal paperwork, and real-time updates has attracted a tech-savvy generation of users, further propelling the demand for neobanking solutions. Additionally, the lower operational costs associated with digital-only banking platforms allow neobanks to offer competitive rates and innovative products, challenging the dominance of traditional financial institutions.

Another significant factor contributing to the expansion of the neobanking market is the growing demand for financial inclusion, particularly in emerging economies. Neobanks have been instrumental in bridging the gap between the unbanked and underbanked populations by providing easy access to essential financial services through mobile applications and online platforms. The rapid proliferation of affordable smartphones and internet connectivity in regions such as Asia Pacific, Latin America, and Africa has created new opportunities for neobanks to tap into previously underserved markets. Furthermore, regulatory support and government initiatives aimed at fostering digital financial ecosystems have accelerated the adoption of neobanking services, enabling millions of individuals and small businesses to participate in the formal economy.

The dynamic regulatory landscape also plays a crucial role in shaping the growth trajectory of the neobanking market. Regulatory bodies across the globe are increasingly recognizing the benefits of digital banking and are introducing frameworks to ensure consumer protection, data privacy, and financial stability. The emergence of open banking regulations has encouraged collaboration between traditional banks, fintech companies, and neobanks, fostering innovation and competition. However, compliance with evolving regulatory requirements remains a challenge for market players, necessitating continuous investments in technology and risk management. Despite these challenges, the regulatory push towards digitalization is expected to create a conducive environment for the sustained growth of the neobanking market over the forecast period.

From a regional perspective, Asia Pacific continues to dominate the neobanking market, accounting for the largest share in 2024, followed by Europe and North America. The region's vast population, high mobile penetration, and supportive regulatory environment have created fertile ground for neobanking startups to flourish. Europe remains a frontrunner in terms of regulatory innovation, with countries like the United Kingdom and Germany leading in neobank adoption. North America, driven by the United States and Canada, is witnessing significant investments in fintech infrastructure and partnerships between traditional banks and digital challengers. Meanwhile, Latin America and the Middle East & Africa are emerging as high-growth regions, fueled by increasing digital adoption and favorable demographic trends.

Se

Middle East And Africa Neobanking Market size was valued at USD 2.85 Billion in 2024 and is projected to reach USD 16.56 Billion by 2032, growing at a CAGR of 24.6% from 2026 to 2032.

Key Market Drivers:

Increasing Smartphone Penetration: The growing use of smartphones across the Middle East and Africa has provided an enabling climate for neobanks to provide their services via user-friendly mobile applications. This growth is especially noticeable in the UAE, which leads the region with roughly 24% of fintech companies operating within its borders.

Rising Digital Literacy: A significant growth in digital literacy has been noticed, with a growing number of people adopting digital tools for everyday activities such as banking. This trend is especially noticeable in Morocco and Egypt, which have 12% and 10% of the region's fintech companies, respectively. Supportive Regulatory Frameworks: Governments in the Middle East and Africa are enacting favorable regulatory frameworks to foster fintech innovation.

The Asia-Pacific neo-banking market is experiencing robust growth, driven by the increasing adoption of mobile banking, fintech innovations, and a burgeoning young population comfortable with digital financial services. The market's Compound Annual Growth Rate (CAGR) of 8.0% from 2019 to 2024 suggests a significant expansion, projected to continue through 2033. Key drivers include the region's high smartphone penetration, expanding internet access, and a preference for convenient, digitally-native financial solutions. This is particularly evident in countries like China and India, which boast massive populations and rapidly developing digital economies. The market segmentation highlights the diverse applications of neo-banking, with a strong focus on mobile banking, payments and transfers, and loans. Business and personal accounts both contribute significantly to the overall market value. While regulatory hurdles and security concerns pose some restraints, the overall market trajectory remains positive, fueled by continuous technological advancements and the increasing demand for accessible, personalized financial services. The competitive landscape is dynamic, with a mix of established players and innovative startups vying for market share. Growth will likely be concentrated in high-growth economies, with China and India expected to remain dominant players in the coming years, followed by other significant markets like Singapore, Australia, and Hong Kong. This growth is fueled by several factors including the increasing preference for personalized financial services catering to the unique needs of diverse customer segments. The integration of AI and machine learning in neo-banking platforms further enhances the customer experience, driving adoption. Moreover, strategic partnerships between neo-banks and established financial institutions are fostering innovation and expansion. This collaborative approach helps neo-banks overcome challenges like regulatory compliance and infrastructure limitations while benefiting from the established networks and customer base of traditional financial institutions. However, the market also faces challenges such as maintaining robust cybersecurity measures, addressing data privacy concerns, and navigating evolving regulatory landscapes in different countries. The continued evolution of the technological landscape and the emergence of innovative solutions such as embedded finance will significantly shape the future of the Asia-Pacific neo-banking market. This comprehensive report provides a detailed analysis of the rapidly evolving Asia-Pacific neo banking market, covering the period 2019-2033. With a base year of 2025 and an estimated year of 2025, this report offers invaluable insights into market size (in millions), growth drivers, challenges, and future trends. This study is crucial for investors, entrepreneurs, and established financial institutions seeking to understand and capitalize on opportunities within this dynamic sector. High-search-volume keywords like "Asia-Pacific neo banking market size," "digital banking Asia," "mobile banking trends," and "virtual banking growth" are integrated throughout for optimal search engine visibility. Recent developments include: In April 2022, WeLab Bank has become the first virtual bank in Hong Kong to be granted permission to provide digital wealth advising services. The Bank soft-launched its intelligent wealth solution GoWealth Digital Wealth Advisory (GoWealth) for selected customers after receiving Type 1 (Dealing in securities) and Type 4 (Advising on securities) licenses from the Hong Kong Securities and Futures Commission (HKSFC)., In December 2021, Kakao Bank announced the signing of an MOU with Kyobo Life Insurance, Kyobo Bookstore, and Kyobo Securities for data cooperation and partnerships with other financial platform firms. Financial product planning and development, as well as cooperative marketing, will arise from a business relationship with Kyobo Life Insurance and Kyobo Securities.. Notable trends are: Number of Customers for Neo Banking is Raising Significantly in the Region.

Asia-Pacific Neo Banking Market can be segmented By Account Type, (Business Account, Saving Account), By Service(Mobile Banking, Payments, and Money Transfer, Loans, Others), By Application,(Enterprises, Personal, and Others), By Geography (China, India, Australia, Singapore, Hongkong, and the Rest of Asia-Pacific)

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

The Europe Neobanking market to experience a steady at CAGR of 51.4% and USD 1038.24 Billion is expected to reach at 2032.

Neobanking Market Outlook 2032

The global Neobanking Market size was USD 103.48 Billion in 2023 and is likely to reach USD 63,423.36 Billion by 2032, expanding at a CAGR of 54.8% during 2024–2032. The market is driven by increasing demand for convenient digital banking solutions and the growing adoption of financial technology innovations.



The demand for personalized banking services is surging, significantly influencing the market. Neobanks leverage data analytics and AI to offer customized financial products that meet individual customer needs, from personalized budgeting tools to tailored investment advice. This enhances customer satisfaction and fosters loyalty and retention, setting neobanks apart from traditional financial institutions.

• 
  

  According to a January 2024 survey in the Neobanking sector, user numbers are projected to reach 386.30 million by 2028. The penetration rate of users is anticipated to be 3.89% in 2024, with expectations to rise to 4.82% by the year 2028.

  
  

The neobanking sector is witnessing an increase in fintech partnerships, aimed at expanding service offerings and enhancing user experiences. These collaborations allow neobanks to incorporate advanced features such as cryptocurrency trading and automated savings plans, further attracting a diverse customer base. Such strategic alliances are pivotal in driving innovation and ensuring neobanks remain at the forefront of the digital banking revolution.



Environmental consciousness is growing, and with it, the demand for sustainable banking practices. Neobanks are responding by integrating ESG (Environmental, Social, and Governance) criteria into their operations, offering green financial products, and supporting sustainable projects. This trend aligns with global sustainability goals

Neobanking Market is set to achieve a value of USD 4784.54 Billion by 2032 with CAGR of 51.5% according to market projections.

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.

Global Neobanking Market is anticipated to project robust growth in the forecast period with a CAGR of 30.46% through 2028.

Pages	185
Market Size
Forecast Market Size
CAGR
Fastest Growing Segment
Largest Market
Key Players

The European neobanking market is experiencing robust growth, projected to achieve a Compound Annual Growth Rate (CAGR) of 21% between 2025 and 2033. While the exact market size in 2025 is not provided, considering a typical market size for rapidly expanding fintech sectors and applying a conservative estimate based on the given CAGR and a plausible 2019 base year value, the market is likely valued at several billion Euros in 2025. This surge is fueled by several key drivers, including the increasing adoption of digital banking services, particularly among younger demographics, a growing preference for convenient and user-friendly mobile banking interfaces, and the intensified competition fostering innovation within the sector. Consumers are drawn to the streamlined onboarding processes, personalized financial management tools, and often lower fees offered by neobanks compared to traditional institutions. This trend is further amplified by advancements in mobile technology and the expanding digital infrastructure across Europe. However, challenges remain. Regulatory hurdles, particularly concerning data privacy and security, pose a significant restraint. Furthermore, maintaining profitability while managing customer acquisition costs and ensuring sufficient infrastructure investment represents an ongoing obstacle for many neobanks. The market is witnessing consolidation, with established players such as Revolut, N26, and Monzo competing aggressively for market share against newer entrants and regional banks launching their own neobanking solutions. The future of the European neobanking landscape will likely depend on the ability of these businesses to adapt to evolving customer expectations, navigate regulatory complexities, and manage operational efficiency in a competitive market. The segmentation of the market likely includes various service offerings, such as personal banking, business accounts, and specialized financial products catering to niche customer segments. This further supports the overall market growth and diversification. Notable trends are: Increasing user penetration of Neobanking Apps.