Neobanking Market Revenue to Total USD 5382.6 Billion by 2033 | Amid Escalating Demand for Digital Financial Services

Notable trends in the Neobanking market were observed, with Business Accounts dominating, claiming over 66% of the market share. The Payments and Money Transfer segment emerged prominently in service types, securing a substantial 41% market share. Enterprises led in applications, commanding 53% of the market.

New York, Dec. 12, 2023 (GLOBE NEWSWIRE) -- According to a report, the Global Neobanking Market size is projected to surpass USD 99.8 Billion in 2023 and is likely to attain a valuation of USD 5,382.6 Million by 2033. The neobanking industry share is expected to rise at an astounding CAGR of 49% from 2024 to 2033.

Neobanking refers to a digital-first approach to banking that leverages technology to provide innovative financial services and products. Unlike traditional banks, neobanks operate solely online, without physical branches. They aim to offer customers a seamless and user-friendly banking experience, often accompanied by modern features, personalized services, and enhanced convenience.

These innovative fintech companies operate exclusively online and through mobile apps, eliminating the need for physical branches. Instead, they leverage advanced technology to deliver a seamless and convenient banking experience to their customers. The growth of neobanks has been driven by increasing internet penetration, changing consumer preferences towards mobile banking, and favorable youth demographics.

Want to Access the Statistical Data and Graphs, Request PDF Sample @

Neobanking Market

Key Takeaways

  • Market Size and Growth: The global Neobanking Market is expected to reach a substantial USD 5,382.6 billion by 2033, with a remarkable CAGR of 49% during the forecast period. In 2023, it is estimated to be USD 148.7 billion.
  • Account Type Analysis: In 2023, the Business Account segment dominated the Neobanking market, capturing over 66% market share.
  • Service Type Analysis: Payments and Money Transfer stood out in 2023, holding over 41% market share, driven by demand for efficient payment solutions.
  • Applications of Neobanking: Enterprises led in 2023, securing more than 53% of the market, attracted by efficient cash management and expense tracking.
  • Regional Analysis: Europe emerged as a dominant region, capturing over 30% of the Neobanking market share.
  • Key Players: Top Key Players in the Neobanking market include Monzo Bank Limited, N26 AG, Revolut Ltd., and others.

Find additional highlights on the growth strategies adopted by vendors and their product offerings, Buy Sample Report.

Report Segmentation of the Neobanking Market

Account Type Analysis:

In 2023, the Neobanking market exhibited distinct segmental trends in terms of account types, with the Business Account segment emerging as the dominant force, capturing more than a commanding 66% share of the market. This significant market share can be attributed to the growing adoption of neobanking solutions by businesses of all sizes.

Neobanks have gained favor among businesses due to their agility and tailored financial services, such as seamless payment processing, real-time transaction monitoring, and simplified expense management. Moreover, the integration of advanced digital tools and analytics has further empowered businesses to optimize their financial operations, ultimately enhancing their competitiveness in the market.

On the other hand, the Savings Account segment, while holding a substantial portion of the Neobanking market, faced a somewhat slower growth trajectory compared to its business-oriented counterpart. The adoption of neobanking solutions for personal savings accounts has been driven by factors like user-friendly interfaces, higher interest rates, and convenient access to financial services through mobile apps. However, competition from traditional banks and the need for neobanks to build trust in handling personal finances have presented challenges to the growth of the Savings Account segment.

Service Type Analysis:

In 2023, the Neobanking market displayed a dynamic landscape, with distinct segmental trends in terms of service types. Notably, the Payments and Money Transfer segment stood out by securing a dominant market position, capturing more than a substantial 41% share. This segment's significant market share can be attributed to the ever-increasing demand for convenient and efficient payment solutions in the digital era.

Neobanks have excelled in providing users with seamless and cost-effective payment and money transfer services, enabling quick and secure transactions domestically and internationally. Additionally, the integration of advanced technologies such as blockchain and real-time transaction tracking has further bolstered the appeal of neobanks in this segment, attracting both individual users and businesses seeking streamlined financial operations.

In the same way, there was also a significant increase in the Mobile Banking part, making up a large portion of the Neobanking market by 2023. Neobanks' mobile banking services have gained popularity due to their simple mobile applications. The apps offer customers convenient accessibility to accounts and quick financial updates, as well as the ability to manage their finances when they are on the go. These services offer competitive interest rates and low fees, making them an attractive option for both personal and business users.

Neobanking Market Share

Furthermore, the Loans segment, though a smaller component of the Neobanking market, has been gaining traction as neobanks explore opportunities to expand their service offerings. Numerical data suggests that Payments and Money Transfer is poised to maintain its dominant position in the coming years, driven by the continued digitalization of financial transactions. However, the market is expected to witness ongoing innovation and competition among neobanks across all service types, further reshaping the segmental landscape and enhancing the overall value proposition for customers.

Application Analysis:

In 2023, the Neobanking market exhibited distinctive segmental trends in terms of applications, with the Enterprises segment establishing its dominance by securing more than a commanding 53% share of the market. This substantial market share is primarily attributed to the increasing adoption of neobanking solutions by businesses of varying sizes.

Enterprises have been drawn to neobanks for their agility and tailored financial services, offering efficient cash management, customizable expense tracking, and streamlined payment processing. Furthermore, the integration of advanced digital tools and analytics has empowered enterprises to optimize their financial operations, fostering efficiency and competitiveness in a rapidly evolving market landscape.

In contrast, the Personal segment, while holding a significant portion of the Neobanking market in 2023, faced certain challenges. Personal users have embraced neobanking due to the convenience of user-friendly mobile applications, competitive interest rates on savings accounts, and access to real-time financial insights. However, intense competition from traditional banks and the need for neobanks to continually build trust in handling personal finances have posed challenges to the growth of this segment.

Additionally, the Other Applications segment, which encompasses diverse niche use cases, constituted the remaining share of the market. Numerical data suggests that the dominance of the Enterprises segment is likely to persist in the years ahead, albeit with increasing competition among neobanks vying for business clientele. The Neobanking market is expected to continue evolving, with the potential for innovative solutions and tailored services to further shape the segmental landscape, meeting the evolving needs of both enterprises and personal users.

To understand Geography Trends, Download Sample Report Here:


  • Digital Transformation: The global shift towards digitalization in financial services is a significant driver for the neobanking market. Neobanks offer seamless, online account management and transactions, aligning with the growing preference for digital banking among consumers.
  • Cost-Effective Solutions: Neobanks typically have lower overhead costs than traditional banks, enabling them to offer competitive interest rates on savings accounts and reduced fees on transactions. This cost-effectiveness attracts customers seeking more affordable banking options.
  • Accessibility and Convenience: Neobanks provide 24/7 access to banking services through mobile apps, making it convenient for users to manage their finances anytime, anywhere. This accessibility appeals to individuals and businesses looking for flexibility.
  • Innovative Features: Neobanks often introduce innovative features, such as real-time spending insights, budgeting tools, and automated savings, enhancing the overall banking experience and attracting tech-savvy customers.


  • Regulatory Challenges: The regulatory environment for neobanks varies by region and can be complex. Meeting compliance requirements and obtaining necessary licenses can pose challenges and slow market entry.
  • Limited Physical Presence: Neobanks usually lack physical branches and ATMs, which can be a drawback for customers who prefer in-person banking services or need access to cash.
  • Cybersecurity Concerns: The digital nature of neobanking makes it susceptible to cybersecurity threats. Protecting customer data and ensuring secure transactions are ongoing challenges for neobanks.
  • Customer Trust: Building trust in digital-only banking services, especially for personal finance management, remains a challenge. Many consumers still harbor reservations about the security and reliability of neobanks.

Growth Opportunities:

  • Global Expansion: Neobanks have the potential to expand their reach internationally, targeting markets with underdeveloped banking infrastructure or a growing appetite for digital financial services.
  • Partnerships and Collaborations: Collaborations with fintech companies, traditional banks, or e-commerce platforms can open new avenues for neobanks to offer complementary services and reach a broader customer base.
  • Niche Segmentation: Identifying and catering to specific niches, such as small businesses, freelancers, or underserved communities, presents growth opportunities for neobanks to tailor their offerings effectively.
  • Advanced Technology Adoption: Embracing emerging technologies like blockchain, AI-driven chatbots, and biometric authentication can enhance security and improve the overall user experience, attracting more customers.


  • Competition from Traditional Banks: Established banks are also investing in digital banking solutions, intensifying competition and making it challenging for neobanks to differentiate themselves.
  • Monetization Strategies: Finding sustainable revenue streams beyond low-cost accounts and transaction fees can be a challenge for neobanks, especially in the absence of traditional banking products.
  • Customer Acquisition Costs: Acquiring new customers in a crowded marketplace can be expensive, requiring significant marketing and promotional efforts.
  • Scalability: As neobanks grow, maintaining scalability and ensuring that service quality doesn't diminish can be a challenge that affects customer satisfaction.

Regional Analysis

In 2023, Europe solidified its position as a leader in the Neobanking market, demonstrating its dominance by capturing a substantial share exceeding 30%. This remarkable achievement can be attributed to a combination of factors that underscore Europe's pivotal role in shaping the global Neobanking landscape.

In addition, Europe's Neobanking sector has witnessed substantial investments, with both established financial institutions and startups entering the market. This influx of capital has fueled the expansion of Neobanks' product offerings and market reach, solidifying their presence in the financial services landscape.

While Europe has taken a prominent position in 2023, it's important to note the global growth of Neobanking, with North America, APAC, Latin America, and the Middle East and Africa all experiencing significant developments in the sector. Neobanking's evolution is reshaping the way people manage their finances worldwide, with each region offering its unique blend of opportunities and challenges, ensuring a dynamic and competitive Neobanking landscape on a global scale.

Neobanking Market Region

Competitive Landscape

The competitive landscape of the market has also been examined in this report. Some of the major players include:

  • Monzo Bank Limited
  • Movencorp Inc.
  • WeBank
  • PRETA S.A.S.
  • N26 AG
  • Revolut Ltd.
  • Ubank
  • Pockit LTD
  • Starling Bank Limited
  • Atom Bank PLC
  • Other Key Players

Scope of the Report

Report AttributesDetails
Market Value (2023)US$ 148.7 Billion
Forecast Revenue 2033US$ 5,382.6 Billion
CAGR (2024 to 2033)49%
Europe Revenue Share30%
Base Year2023
Historic Period2018 to 2022
Forecast Year2024 to 2033

For a better understanding, refer to this sample report, which includes corresponding tables and figures@

Market Segments

Account Type

  • Business Account
  • Savings Account

Service Type

  • Mobile Banking
  • Payments and Money Transfer
  • Checking/Savings Account
  • Loans
  • Other Service Types


  • Enterprises
  • Personal
  • Other Applications

By Geography

  • North America
    • The US
    • Canada
  • Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Russia
    • Netherland
    • Rest of Europe
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • New Zealand
    • Singapore
    • Thailand
    • Vietnam
    • Rest of APAC
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of MEA

Recent Developments

  • In September 2022, N26 became the first neo-bank to join Bizum. Users with a Spanish IBAN (1) can now seamlessly engage in sending, receiving, and requesting money through the popular mobile payments service, as per a recent announcement by the online bank.

Trending Industry Reports 

About Us

Market.US (Powered by Prudour Pvt Ltd) specializes in in-depth market research and analysis and has been proving its mettle as a consulting and customized market research company, apart from being a much sought-after syndicated market research report-providing firm. Market.US provides customization to suit any specific or unique requirement and tailor-makes reports as per request. We go beyond boundaries to take analytics, analysis, study, and outlook to newer heights and broader horizons.Follow Us On LinkedIn Facebook Twitter

Our Blog: 


Contact Data