GVR Report cover Neobanking Market Size, Share & Trends Report

Neobanking Market Size, Share & Trends Analysis Report By Account Type (Business Account, Savings Account), By Application (Enterprises, Personal), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jan, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-324-2
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 120

Report Overview

The global neobanking market size was valued at USD 34.77 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 47.7% from 2021 to 2028. Neobanks offer a complete range of banking solutions without any physical branches or offices. The increasing demand for customer convenience in the banking sector is expected to drive the growth of the market. Neobanks are customer-centric and offer personalized services to customers, which differentiates them from traditional banks. Neobank platforms enable users to validate their service offerings in real time through mobile sites and online channels. These platforms also eliminate the need for human interference, thereby reducing transaction errors. Additionally, benefits offered by neobanking, such as fast servicing, healthy interest rates, and cost-effective banking, are expected to fuel the market growth over the forecast period. Substantial growth potential for neobanks is also driven by its low-cost model for end-users with very low or no monthly fees for financial services such as withdrawals, deposits, and balance maintenance.

U.S. neobanking market size, by account type, 2017 - 2028 (USD Billion)

The increased penetration of smartphones and the internet across the globe has boosted the market potential for neobanks. Moreover, the growing customer interest in digital banking services is fueling competition across the globe, encouraging neobanks to come up with different features such as sign-up incentives and overdraft protection. Numerous neobanks operate under a freemium model, under which they offer their services for free, thus attracting a wide user base. Customers are also widely adopting neobanking services owing to benefits such as personal finance management features, such as low-interest rates, and improved user experience.

The neobanking model offers a low-cost structure, easy accessibility, and advanced services. Its cost efficiency is primarily driven by the low real estate and distribution costs, less complex IT systems, and streamlined operating models. Neobanking offers a range of real-time services for payments, account opening, and balance checking, among others. It also offers high-security features such as freezing and locking of the app.

Apart from primary banking services, neobanks also offer real-time accounting and reconciliation services for balance sheets, bookkeeping, profit & loss statements, and taxation services such as tax payments record-keeping and GST-compliant invoicing. They follow a transparent model and offer a detailed preview of their savings, spending, transactions, and other operations through real-time notifications and alerts. However, neobanks offer a narrower range of product offerings as compared to traditional banks, which is expected to hinder the market growth. Profitability is another issue faced by neobanks as they offer services below cost to attract new customers.

Account Type Insights

The business account segment dominated the market in 2020 and accounted for more than 66.0% share of the global revenue. Based on account types, the market has been segmented into the business account and savings account. Various businesses across the globe are adopting neobanking as the preferred way of payment for bulk payouts. Moreover, neobanking models seamlessly integrate banking into business workflows with developer-friendly banking Application Programming Interface (API) to drive the fast and scalable growth of businesses. Business banking services combine all operations from banking to invoicing and automated bookkeeping in one place.

The savings account segment is expected to witness significant growth over the forecast period. Neobanking websites have a user-friendly platform that is specially designed to protect against cyberattacks and enhance the online ecosystem of savings accounts. Additionally, neobanks can monitor the banking network and easily detect cyberattacks. Customers can make overseas transactions more securely, thereby creating growth opportunities for the segment over the forecast period.

Application Insights

The enterprises segment dominated the market in 2020 and accounted for more than 52.0% share of the global revenue. Based on applications, the market has been further segmented into enterprises, personal, and others. These platforms offer enterprise-related services such as credit management, transaction management, and asset management. Various neobanks offer dashboard solutions to enterprises with highly enhanced interfaces and valuable insights for services such as payables, receivables, payments, and bank statements. This, as a result, is expected to create growth opportunities for the segment over the forecast period.

Europe neobanking market share, by application, 2020 (%)

The personal application segment is anticipated to witness significant growth over the forecast period. The high penetration rate of smartphones has enabled customers to widely opt for neobanking services owing to convenience and ease of use. The services are offered using mobile app interfaces, which further enables money transfers and payments through the app. The convenience of opening and operating accounts effectively is further anticipated to fuel the adoption of neobanking over the forecast period.

Regional Insights

The European region dominated the neobanking market in 2020 and accounted for over 30.0% share of global revenue. The growth can be attributed to the development of a large number of innovative technologies coupled with the early adoption of new technologies in the region. Moreover, companies are focused on launching product platforms and forming partnerships to strengthen their market position. Various neobanks in the region have launched brick-and-mortar distribution channels to establish an O2O type of distribution, thereby creating growth opportunities for the market.

Meanwhile, Asia Pacific is expected to emerge as the fastest-growing market over the forecast period. The growing adoption of internet services, coupled with the increased use of smartphones, is expected to accelerate market growth. Intending to speed up modernization and innovation through competition, regulators across the region are gradually opening up neobanking systems to broader participation. New vendors are likely to find avenues to launch highly relevant services in the region with an unparalleled level of ease & convenience and low pricing.

Key Companies & Market Share Insights

Vendors are focusing on launching their mobile app-based banks. The bigger banks have been slower to adapt to new technologies and changing customer needs; however, start-up digital banks have been amassing a large user base who are actively using their services. Moreover, these start-ups are focusing on developing services that can be easily integrated with business processes.

Neobanks are challenging the universal banking model with their personalized insights, lower costs, user-friendly interfaces, predictive intelligence, easy accessibility, and simplified processes. These banks are prioritizing customer needs and structuring their services and products, which is strengthening their foothold in the market. Numerous vendors are focusing on integrating AI into their models, which allows businesses to make faster decisions. Furthermore, neobanks are creating appropriate ways for accessing banking needs by tapping into the local ecosystem, embedding AI-based capabilities into their offerings, and collaborating with technology specialist firms. Some prominent players operating in the neobanking market include:

  • Atom Bank PLC

  • Fidor Bank Ag

  • Monzo Bank Limited

  • Movencorp Inc.

  • MyBank

  • N26

  • Revolut Ltd.

  • Simple Finance Technology Corporation

  • Ubank Limited

  • WeBank, Inc.

Neobanking Market Report Scope

Report Attribute


Market size value in 2021

USD 47.1 billion

Revenue forecast in 2028

USD 722.60 billion

Growth rate

CAGR of 47.7% from 2021 to 2028

Base year of estimation


Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company market share analysis, competitive landscape, growth factors, and trends

Segments covered

Account type, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil

Key companies profiled

Atom Bank PLC; Fidor Bank Ag; Monzo Bank Limited; Movencorp Inc.; MyBank; N26; Revolut Ltd.; Simple Finance Technology Corporation; Ubank Limited; WeBank, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope

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Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global neobanking market report based on the account type, application, and region:

  • Account Type Outlook (Revenue, USD Billion, 2017 - 2028)

    • Business Account

    • Savings Account

  • Application Outlook (Revenue, USD Billion, 2017 - 2028)

    • Enterprises

    • Personal

    • Others

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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