Global Neobanking Market and Trends 2021
Banking services are moving to the virtual space, supported by the rising user adoption rates: new yStats.com market report.
The new publication from Hamburg-based market research company yStats.com, “Global Neobanking Market and Trends 2021” offers a range of Neobanking statistics and an assessment of the development in the international Neobanking market. The publication reveals that the rising adoption of digital tools is likely to further increase the adoption rates of Internet-only banks and support the spread of this type of bank across the globe.
In the near future, Neobanks are anticipated to see a boom in user numbers
Neobanks, which arose as a result of global digitalization, will further gain in popularity among consumers in various regions of the world. This can be concluded from the pre- and post-pandemic development of the industry: at the end of 2020, the number of digital-only bank institutions had expanded at least fourfold compared to 2018 and the consumer adoption rate rose by six percentage points when taking a global average. Moreover, as people convert their banking transactions to digital, even if they still have their main accounts at traditional banks, many are becoming aware that challenger banks, in conjunction with entirely online services are attractive because of better terms, as detailed in the new yStats.com publication.
European and North American Neobanks dominated the most recent global ranking of Neobanks
Consumers in the European Union are said to be still rather conservative when it comes to selecting a bank and opening an account. In a recent survey cited in the yStats.com publication, only under 5% of respondents would trust Neobanks their long-term financial well-being, and just a marginally bigger portion of those surveyed claimed to have a great deal of confidence in this kind of bank. Nevertheless, the quantity of Neobanks is rising in the region, and the customer base is also increasing, as detailed in the new yStats.com market report. Additionally, Neobanks based in the United States are currently taking 8 out of 20 places in the ranking of the leading Neobanks globally, reflecting the growing consumer adoption. In the Asia-Pacific region, the regulatory implementation is still in the developing phase, however some markets, such as Australia and Hong Kong, already have taken serious steps towards banking digitalization. Meanwhile, in Latin America, the number of Neobanks has been growing by nearly 30% annually in the last decade, with Brazilian NU Bank being currently the largest one in the region by its customer base, and the country itself being the regional leader.
- 1. Management Summary
- 2. Global Market Overview
- • Neobanks Current Developments Overview, incl. Pros and Cons, September 2021
- • Top 3 Trends in Neobanking in 2021, January 2021
- • Market Size of Digital Banking, in USD billion, 2020 & 2026f
- • Top 20 Independent Neobanks, by Valuation, in USD billion, 2020
- • Top 20 Independent Neobanks, by User Base, in millions, 2020
- • Top 20 Independent Neobanks, by Funding Value, in USD million, 2020
- • Share of Retail and Corporate Banking, in % of Total Digital Banking Market Size, June 2021
- • Neobanking Penetration Rate, by Type of Consumer, in % of Bank Account and Insurance Policy Consumers, August 2020
- • Neobanking Penetration Rate, by Type of Consumer, in % of Bank Account and Insurance Policy Consumers, August 2020
- • Share of Consumers who Use that Use a Neobank for the Majority of Banking Transactions, by Type of Consumer, in % of Bank Account and Insurance Policy Consumers, August 2020
- • Share of Young Consumers Who Would Likely Switch to a Banking Solution from Google or Apple, in %, January 2021
- 3. Europe
- 3.1. Regional
- • Breakdown of Consumer Trust Level to Look After Their Long-Term Financial Well-Being, by Various Providers, in % of Bank Account and Insurance Policy Holders, August 2020
- • Breakdown of Consumer Trust Level to Look After Their Data, by Various Providers, in % of Bank Account and Insurance Policy Holders, August 2020
- • Top Reasons Why Consumers Don’t Have a Neobank Account, in % of Bank Account and Insurance Policy Holders, August 2020
- • Overview of the Leading Neobanks, December 2020
- 3.2. United Kingdom
- • Share of Adults With a Digital-Only Bank Account, in %, Jan. 2020, and Number of Adults With a Digital-Only Bank Account, in millions, Jan. 2019 & Jan 2020 & Jan. 2021
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- • Share of Adult Digital-Only Bank Account Holders who Use It All or Most of the Time, in %, October 2020
- • Reasons for Opening an Account in a Digital Bank, in % of Adults, 2020 & 2021
- • Reasons for not Opening an Account in a Digital Bank, in % of Adults, 2020 & 2021
- • Reasons for not Opening an Account in a Digital Bank, by Age Group, in % of Adults, 2020 & 2021
- 3.3. France
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- 3.4. Spain
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- 3.5. Poland
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- • Number of Mobile-Only Customers of Polish Banks, Q1 2020 & Q4 2020 & Q1 2021
- 3.6. Italy
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- 3.7. Romania
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- 3.8. Ireland
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- 3.9. Portugal
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- 3.10. Germany
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- • Breakdown of Banks Types Used, in % of Adult Consumers, November 2020
- • Ways of Conducting Bank Transactions, in % of Adult Consumers, November 2020
- • Banking and Financial Services Done Online, in % of Adult Consumers, November 2020
- • Top Valued Features at Banks, in % of Respondents, 2017 – 2020
- • Share of Respondents with a Digital-Only Bank Account, and Intention to Open One, in %, 2018 – 2020
- 3.11. Denmark
- • Number of Clients in European Neobanks, in millions, June 2019 & November 2019 & June 2020 & December 2020
- 3.12. Russia
- • Top 15 Banks, in % of Respondents Who Used Their Services in the Last 30 Days, August 2020
- • Revenue of Tinkoff Neobank, in RUB billion, and Year-on-Year Change, in %, Q3 2019 – Q2 2021
- • Customer Base of Tinkoff Neobank, in millions, and Quarter-on-Quarter Change, in %, Q1 2020 – Q2 2021
- 4. North America
- 4.1. United States
- • Neobank Account Holders, in millions, and Year-on-Year Change, in %, 2020 – 2025f
- • Neobank User Penetration Rate, in % of Population, 2020 – 2025f
- • Top Four Digital-Only Banks, by Market Account Holders, in millions, August 2021
- • Share of Consumers who Conduct Banking Through Digital Channels, in %, May 2021
- • Share of Consumers who Use Mobile Banking and Desktop/Online Banking, in % of Consumers Using Digital Banking, May 2021
- • Top Used Features of Mobile Apps, in % of Mobile Banking Apps Users, May 2021
- • Share of Consumer who Visit Ban Branches in-Person, and The top Reasons of Doing so, in %, May 2021
- • Share of Digital Banking, in % of Total Digital Banking Market Size, June 2021
- • Digital Banking User Perceptive and Interact with Their Bank, by High- and Low- Digital Trust Users, in % of Digital Banking Users, Q1 2021
- • Top Used Mobile Banking Apps Features, in % of Bank Account Holders, February 2021
- 4.2. Canada
- • Share of Bank Customers who Would Allow Banks to Make Them Insurance Offerings, by Digital-Only and Traditional Bank Customers, in %, June 2021
- • Reasons to Allow Banks to Make Insurance Offers, by Digital-Only and Traditional Bank Customers, in % of Bank Customers, June 2021
- 5. Asia-Pacific
- 5.1. Regional
- • 50 Digital Challenger Banks in Select Countries, June 2021
- • Neobanks Market Readiness in Select Countries, December 2020
- • Number of Neobanks in Select Countries, December 2020
- • Share of Banking customers Who Would Like to Switch to Neobanks or New Digital Challengers, in %, 2020
- • Ecosystem of Profitable Digital Challenger Banks, incl. Number of Users, in millions, June 2021
- • Ways to Start a Banking Relationship, by Country, in % of Digital Banking Customers, December 2020
- • Willingness to Try a Fintech/Challenger Bank, by Country, in % of Digital Banking Customers, December 2020
- 5.2. Hong Kong
- • Overview of Virtual Banks, incl. Main Target Group, March 2021
- • Overview of Virtual Banks, incl. Services Offered, Launch Date, and Deposits, March 2021
- 5.3. Singapore
- • Overview of Recent News in the Digital Banks’ Space, December 2020
- • Share of Online Adults Who Prefer a Financial Institution with a Branch, and Share of Online Adults Who Prefer Using a Bank Branch for Day-to-Day Needs, in %, June 2020
- 5.4. Australia
- • Share of Consumers Who Trust Big Banks, and Who Trust Fintechs, in %, Q1 2021
- • Share of Adult Internet Users to Select Digital Bank Without Bank Branches When Opening Their Next Account, in %, July 2020
- 5.5. South Korea
- • Number of Kakao Bank Users, in millions, July 2017 – May 2021
- • Number of K Bank Users, in millions, December 2020 – March 2021
- 6. Latin America
- 6.1. Regional
- • Number of Digital-Only Banks, 2012 – 2021e
- • Number of Neobank Customers, in millions, 2016 – 2021e
- • Top 10 Neobanks, by the Number of Customers, in millions, July 2021
- • Top 10 Neobanks, by the Funding Value, in USD million, July 2021
- • Product Portfolio Comparison of Select Neobanks, July 2021
- 6.2. Brazil
- • Share of Respondents with an Account in a Digital Bank, and Share of Those Who in Addition to a Digital Bank account Has an Account in a Traditional Bank, in %, 2020
- • Share of Consumers who Intend to Take a Loan When the Country's Economy is Recovered from the Pandemic, and Share of Those Who Would Do So at a Digital Bank, in %, July 2021
- • Top Reasons to Apply for a Loan, by Traditional and Digital-Only Banks, in % of Consumers, July 2021
- • Actions Taken after Being Denied a Loan, in % of Consumers Who Were Denied a Loan by a Traditional Bank, July 2021
- 6.3. Mexico
- • Change in Use of Various Banking Services Since the Pandemic, in % of Individuals, November 2020
- • Overview of Selected Neobanks’ Credit Cards, March 2021
- • Share of Adults Who are More Likely to Use Digital Means to Open a Bank Accounts, and Share of Adults Who Less Likely to Open an Account in Branch than Before COVID-19, in %, January 2021
- • Expectations about Tasks to be Able to Complete Digitally When Opening a Bank Account Online, in % of Adults, January 2021
- 6.4. Colombia
- • Share of Adults Who are More Likely to Use Digital Means to Open a Bank Accounts, and Share of Adults Who Less Likely to Open an Account in Branch than Before COVID-19, in %, January 2021
- • Expectations about Tasks to be Able to Complete Digitally When Opening a Bank Account Online, in % of Adults, January 2021
- 7. Middle East and Africa
- 7.1. Middle East
- • 21 Neobanks in Select Countries, December 2020
- • Overview of Select Neobanks, September 2021
- 7.2. Africa
- • Overview of Selected Neobanks’ Credit Cards, March 2021
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