Neobanking market to reach 3.3 trillion by 2032, report says

Tuesday 13 February 2024 10:40 CET | News

Allied Market Research has published a report that analyses the popularity of neobanks as well as the sector’s growth trajectory.


According to the report, neobanks have surged in popularity due to their customer-centric approach, offering user-friendly interfaces and a range of financial services without the traditional constraints of physical banks. These digital banks provide easy access to banking services via smartphones and internet connectivity.

Moreover, Allied Market Research found that the global neobanking market was valued at USD 68.95 billion in 2022 and is projected to reach USD 3,251.95 billion by 2032, growing at a CAGR of 47.3% from 2023 to 2032. The growth of the neobanking market is primarily driven by the increasing digitalisation of banking activities and the growing demand for digital banking solutions. Despite challenges such as security issues and high implementation costs, investments in the fintech industry are expected to create lucrative opportunities for market expansion.

During the COVID-19 pandemic, the neobanking market experienced steady growth as reliance on online banking services increased. Many small and medium-sized enterprises (SMEs) turned to neobanks to meet their working capital needs, driving market growth.

The savings account segment is expected to maintain the highest growth rate throughout the forecast period, fuelled by increased adoption of digital banking. In 2022, the business account segment had the largest market share, driven by businesses adopting neobanking for bulk payouts. However, the savings account segment is projected to witness the highest CAGR due to increased digitalisation in banking activities.


Allied Market Research has released a new report that analyses the popularity of neobanks as well as the sector’s growth trajectory.


Service type and geography 

In terms of service type, mobile banking dominated the market in 2022, driven by demand for personalisation and self-service. However, the loans segment is also expected to exhibit a high growth rate, driven by benefits such as optimised loan processes and quicker decision-making.

The enterprise segment accounted for the largest share based on application in 2022, attributed to the adoption of neobanking applications for enterprise-related services. Meanwhile, the personal segment is expected to witness the highest growth rate, driven by the widespread use of smartphones enabling customers to opt for neobanking services.

Europe held the highest market share in 2022, with successful neobanking businesses in the region. At the same time, the Asia-Pacific region is expected to witness the fastest growth, driven by government initiatives in the banking industry and increasing mobile and internet penetration in countries like India and China.

Important players in the global neobanking market include Monzo Bank Limited, Movencorp, Inc., WeBank, PRETA S.A.S., N26 AG, Revolut Ltd., Ubank, Pockit LTD, Starling Bank Limited, and Atom Bank PLC. These companies have adopted various strategies such as new product launches and collaborations to maintain their market dominance.

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Keywords: report, neobanks, financial services, digitalisation
Categories: Banking & Fintech
Companies: Allied Market Research
Countries: United States
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