Neobanking

Global Neobanking Market to Reach US$2.1 Trillion by 2030

The global market for Neobanking estimated at US$172.9 Billion in the year 2024, is expected to reach US$2.1 Trillion by 2030, growing at a CAGR of 51.7% over the analysis period 2024-2030. Business Account, one of the segments analyzed in the report, is expected to record a 45.3% CAGR and reach US$1.0 Trillion by the end of the analysis period. Growth in the Savings Account segment is estimated at 60.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$45.4 Billion While China is Forecast to Grow at 49.2% CAGR

The Neobanking market in the U.S. is estimated at US$45.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$309.0 Billion by the year 2030 trailing a CAGR of 49.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 46.1% and 45.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 35.9% CAGR.

Global Neobanking Market – Key Trends & Drivers Summarized

Why Is Neobanking Disrupting Traditional Banking? The Shift to Digital-Only Financial Services

The neobanking market has emerged as one of the fastest-growing sectors in financial services, driven by the digital transformation of banking and the increasing adoption of fintech solutions. Unlike traditional banks, neobanks operate entirely online without physical branches, offering streamlined services, lower fees, and highly personalized customer experiences. The rise of mobile-first consumers and demand for seamless, 24/7 banking solutions have accelerated neobank adoption, particularly among millennials and small businesses seeking cost-effective financial management. Regulatory support for open banking initiatives, particularly in Europe (PSD2) and other global markets, has further facilitated the growth of neobanks by allowing them to integrate with existing financial ecosystems. Additionally, neobanks leverage artificial intelligence (AI) and machine learning (ML) to offer predictive financial analytics, fraud detection, and automated savings tools, enhancing user engagement and financial literacy. As traditional banks struggle with legacy infrastructure and high operational costs, neobanks are capitalizing on agility and innovation to reshape the future of banking.

What Are the Key Innovations Driving Neobank Growth?

Neobanks have revolutionized banking by adopting cutting-edge technologies that enhance efficiency, security, and user experience. AI-powered chatbots, robo-advisors, and voice-activated banking assistants have transformed customer service, making financial interactions more intuitive. Blockchain technology is also being integrated into neobanking platforms to improve transparency and security in digital transactions. Another significant innovation is the rise of embedded finance, where neobanks integrate their services into third-party platforms, enabling seamless financial transactions in e-commerce, ride-hailing, and gig economy applications. Additionally, the adoption of biometric authentication and digital identity verification has strengthened security measures, reducing fraud risks. Many neobanks are also developing decentralized finance (DeFi) solutions, allowing users to access cryptocurrency services, peer-to-peer lending, and borderless financial transactions. These technological advancements are not only enhancing service efficiency but also expanding the scope of financial inclusion by reaching underbanked populations worldwide.

How Are Neobanks Expanding Beyond Traditional Banking Services?

Neobanks are diversifying their product offerings beyond standard banking services, venturing into wealth management, lending, and insurance. Many are introducing micro-loans, buy-now-pay-later (BNPL) solutions, and credit-building tools to cater to consumers with limited access to traditional credit. The rise of fractional investing and automated portfolio management has enabled neobanks to attract retail investors, offering commission-free trading and robo-advisory services. Additionally, neobanks are increasingly partnering with businesses to provide tailored financial solutions, such as expense management tools and digital payroll services for small and medium enterprises (SMEs). Subscription-based banking models are also gaining traction, where customers pay a flat monthly fee for premium financial services, including cashback rewards, international transactions, and enhanced savings options. By expanding their service ecosystem, neobanks are positioning themselves as comprehensive financial hubs rather than mere alternatives to traditional banks.

What Are the Key Growth Drivers for the Neobanking Market?

The growth in the neobanking market is driven by several factors, including increasing smartphone penetration, rising demand for cost-effective banking solutions, and regulatory advancements supporting digital finance. The global shift toward cashless economies has accelerated digital banking adoption, particularly in emerging markets where mobile banking provides financial access to unbanked populations. The rapid expansion of e-commerce and digital payment ecosystems has also fueled demand for integrated banking solutions. Additionally, the COVID-19 pandemic reinforced the need for contactless financial services, further propelling neobank adoption. Venture capital investments in fintech startups have also played a crucial role in funding neobank expansions and technological developments. Furthermore, the rise of Gen Z and millennial consumers, who prioritize convenience and digital-first experiences, continues to shape the evolution of neobanking. As traditional banks continue to digitize, competition between legacy institutions and neobanks is expected to intensify, driving further innovation and market growth in the digital banking space.

SCOPE OF STUDY:

The report analyzes the Neobanking market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Account Type (Business Account, Savings Account); Vertical (Enterprises Vertical, Personal Vertical, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 43 Featured) -

• Ally Bank
• Aspiration
• Bunq
• Chime
• Current
• Dave
• Judo Bank
• K Bank
• KakaoBank
• Monzo
• N26
• Nubank
• Oxygen
• Revolut
• Starling Bank
• Tide
• Tinkoff Bank
• Up Bank
• Varo Bank
• WeBank

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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