The global neo bank market was estimated to be around USD 47.39 Billion in 2021 and is projected to reach USD 927.12 Billion by 2028, at a healthy CAGR of 52.93% during the forecast period (2022 - 2028).
Westford, USA, Jan. 05, 2023 (GLOBE NEWSWIRE) -- As per the latest market research report, the neo bank market is anticipated to experience lucrative growth in the near future, owing to rising demand from the user base for easy-to-access financial services. Neo banks are entirely digital banks with no physical locations. Instead, these mobile-only fintech companies rely primarily on technology to provide tailored banking experiences that traditional banks cannot offer.
According to SkyQuest's market analysis, neobanking has revolutionized the global financial services business by leveraging emerging technologies and innovative solutions. India leads the adoption race with an adoption rate of 87%, which is significantly higher than the global average of 64%. In addition, better client experiences and specialized product expectations create opportunities for neo-banking models. As per the research data, there are over 23 million neo bank consumers in the United States, projected to expand to approximately 47 million to 50 million users by 2025.
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Neo Banking Platforms are Receiving Lucrative Investments from Leading Financial Group
As per the market insights of SkyQuest, neobanks such as Chime and Varo will gain roughly 19 million US account holders between 2021 and 2025. Nearly 40 million US people will have accounts with digital-only banks by the end of 2025. The leading global investors are likely to show their interest in the Southeast Asian region to target untapped markets and people. To gain more market insights, the latest research report on neo bank market can provide a comprehensive outlook of the underlying dynamics driving demand for each sector in the world's top spending regions.
Neobanking will play a crucial role in the world's digitalization by providing unique saving and investment features with the goal of financial inclusion for many segments of society, including but not limited to women, teenagers, LGBTQ, the gig economy, small businesses, and other stakeholders. In addition, there could be increasingly more collaboration from and innovation driven by leading banks, prominent technology players, and even regulatory organizations.
Business Account Segment to Dominate the UK Market with More Than 60% of Share
The UK commerce sector offers SMEs lucrative opportunities to be part of newer revenue streams. The e-commerce market is generating more than 35% of revenue. The rise in the adoption of mobiles among the 18 to 25-year-old age group is one of the key factors behind the sector's growth. In addition, Neo banks are strategically shifting and updating their business service offerings as per the rising needs of enterprise end-users and SMEs, emphasizing international transfers and instant credit limits.
Asia Pacific Region to Offer Huge Consumer Base for New Bank Startups
In Japan, the enterprise application segment is anticipated to register a 50% of growth rate in the coming years. It is predicted that going cashless would save banks about 9.4 billion a year, which is projected to drive significant growth for neo banking companies. According to SkyQuest's report, some of the leading companies have completed over 10,000 crores of transactions across all product lines. In addition, several prominent neo banking platforms are developing a reliable service offering to increase their customer count.
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The market insights covered in the research report feature potential trends likely to positively influence neo bank market growth and guide market participants concerning risks they should consider when preparing future roadmaps for their respective businesses.
Market Participants are Aiming to Diversify Product Portfolio to Dominate the Market
As per SkyQuest's market insights, in terms of global comparison, the United States has the most significant transaction value (US$1.426.00 billion in 2023). Additionally, in the neo bank segment, the count of users is anticipated to reach 376.89m by 2027. Therefore, market leaders will look to capitalize on such a massive market with significant investments and strategic collaborations. Furthermore, a rapid rise of easy-to-access banking services and increasing digital-only banks are projected to exacerbate market competitiveness in the future years.
The market report offers an in-depth analysis of the target market to help new entrants and well-established players gain comprehensive insights into the market. In addition, the research report aims to allow readers to find lucrative growth pockets in the market.
Key Developments in Neo Bank Market
- Tonik, the Philippines' first neo bank, has agreed to acquire TendoPay, which provides payroll-enabled financial solutions to businesses. Tonik has expanded its core loan portfolio while integrating payroll-enabled financial services into its operations as a result of the purchase.
- BharatATM, a neo banking platform, enables kiranas and neighborhood retail businesses to provide customer banking services. The startup's latest' bank sakhi' project, which aims to 'financially empower women,' has assisted 11,230 women in earning Rs 8K per month on average.
Questions Answered by the Latest Research Report on Neo Bank Market
- Which region is projected to dominate the global neo bank market?
- What are the significant trends that will highly influence market growth?
- What are the successful strategies of global market leaders?
- What is the expected market growth during the forecast period?
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Some of the Prominent Players in the Neo Bank Market Include:
- Atom Bank PLC (UK)
- Movencorp Inc. (US)
- Fidor Bank AG (Germany)
- Mybank (China)
- Monzo Bank Ltd. (UK)
- Revolut Ltd. (UK)
- N26 (Germany)
- Simple Finance Technology Corp. (US)
- Webank, Inc. (China)
- Ubank Limited (South Africa)
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