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Neobanking Market

Neobanking Market Size, Share & Segmentation by Account Type (Business Account, Savings Account), by Service (Mobile Banking, Payments & Money Transfer, Checking/Savings Account, Loans), by Application (Enterprises, Personal), by Regions and Global Market Forecast 2022-2028

Report Id: SNS/ICT/1257 | May 2022 | Region: Global | 125 Pages

Report Scope & Overview:

The Neo banking Market was valued at USD 46.87 Bn in 2021 and is predicted to increase at a CAGR of 52.4% from 2022 to 2028, to reach USD 914.02 billion by 2028.

The increased need for convenience among banking consumers is projected to fuel industry expansion. Neobanks provide financial services without the need for physical locations. They assist users invalidating their service offers in real-time via internet and mobile platforms. Furthermore, the increasing use of smartphones and the internet for online banking throughout the world is projected to fuel demand for neobank systems.

Neobanking Market

The growing number of bank and organization collaborations to establish neo banking platforms is also propelling industry expansion. Such collaborations strive to improve consumer experience while also increasing safety and stability.

MARKET DYNAMICS: 

KEY DRIVERS: 

  • Neobanks offer a full range of banking services without the need for physical offices or branches.

  • Over the forecast period, the global neobanking market is predicted to rise due to an increase in demand for consumer convenience in the banking industry.

RESTRAINTS: 

  • Authenticity and financial security are two main obstacles that are predicted to stifle the worldwide neobanking market's expansion throughout the forecast period.

  • The digital banking market's expansion is being hampered by a lack of simple solutions and an increase in convenience for accessing multiple services.

OPPORTUNITIES: 

  • During the market projection period, the IT department, which serves numerous sectors globally and locally, will be heavily reliant.

  • The Asia Pacific area, which is followed by Latin America, has various emerging markets.

CHALLENGES: 

  • Companies are planning and attempting to execute operations using new and updated approaches, which would necessitate a significant investment. 

  • Employees are less ready to take on work owing to uncertainty.

IMPACT OF COVID-19:

Because of the growing reliance on online banking services, the advent of the COVID-19 pandemic is projected to open up new growth potential for the business. In the aftermath of the epidemic, a slew of social, political, and economic issues has emerged throughout the world. Both financial service providers and investors are affected by these issues. During the epidemic, however, many SMEs turned to neobanks for working finance, propelling the sector forward.

KEY PLAYERS:

The key players in the Neobanking Market are Atom Bank Plc, BBVA S.A., BMTX, Inc., Chime Financial, Inc., Citigroup Inc., Dave, Inc., Deutsche Bank AG, Digibank (DBS Bank Ltd., Equitable Bank, HSBC Holdings Plc.

MARKET ESTIMATION:

Market, By Account type:

The market has been divided into two types of accounts: business accounts and savings accounts. In 2021, the business account sector led the market, accounting for more than 65.0 percent of total revenue. Neo banking is becoming the favored method of payment for large settlements in a variety of industries throughout the world. Furthermore, the potential of neo bank platforms to give suppliers and other stakeholders simplicity and convenience of procedures in disbursals by decreasing human participation is projected to fuel the segment's growth. Over the projected period, the savings account category is predicted to grow at the quickest rate.

Market, By Application:

The market has been segmented into businesses, individuals, and others based on applications. In 2021, the enterprise sector led the market, accounting for more than 52 percent of worldwide sales. Credit management, transaction management, and asset management are among the services provided by these platforms. Various neo bank service providers for SMEs are attempting to expand their product line through acquisitions in order to better serve their customers. For example, in December 2021, Open, a Neo banking platform provider for small businesses, announced the purchase of Finin, a consumer Neo banking platform, for USD 10 million in cash and shares.

KEY MARKET SEGMENTATION:

By Service Type:

  • Mobile Banking

  • Payments & Money Transfer

  • Checking/Savings Account

  • Loans

  • Others

By Account type:

  • Business

  • Savings

By Application:

  • Personal

  • Business

Neobanking Market

REGIONAL ANALYSIS:

In 2021, the European region led the worldwide market, accounting for more than 30% of global sales. The development of many innovative technologies and the early acceptance of new technologies are responsible for the regional market growth. Furthermore, corporations are concentrating their efforts on creating product platforms and forming alliances in order to increase their market position. Several neo banks in the region have opened brick-and-mortar distribution channels in order to develop an O2O distribution model, resulting in market growth potential.

Over the projection period, Asia Pacific is predicted to be the fastest-growing regional market. The rising usage of smartphones, together with the expanding use of internet services, is likely to boost market development. Furthermore, factors such as accessible and convenient banking services, as well as the expansion of digital-only banks in countries such as Japan, India, and China, are likely to contribute to the Asia Pacific regional market's growth throughout the forecast period.

REGIONAL COVERAGE:

  • North America

    • The USA

    • Canada

    • Mexico

  • Europe

    • Germany

    • The UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Rest of Europe

  • Asia-Pacific

    • Japan

    • south Korea

    • China

    • India

    • Australia

    • Rest of Asia-Pacific

  • The Middle East & Africa

    • Israel

    • UAE

    • South Africa

    • Rest of Middle East & Africa

  • Latin America

    • Brazil

    • Argentina

    • Rest of Latin America

Neo banking Market Report Scope:
Report Attributes Details
Market Size in 2021  US$ 46.87 Bn
Market Size by 2028  US$ 914.02 Bn
CAGR   CAGR of 52.4% From 2022 to 2028
Base Year  2021
Forecast Period  2022-2028
Historical Data  2017-2020
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • by Account Type (Business Account, Savings Account)
• by Service (Mobile Banking, Payments & Money Transfer, Checking/Savings Account, Loans)
• by Application (Enterprises, Personal)
Regional Analysis/Coverage North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
Company Profiles Atom Bank Plc, BBVA S.A., BMTX, Inc., Chime Financial, Inc., Citigroup Inc., Dave, Inc., Deutsche Bank AG, Digibank (DBS Bank Ltd., Equitable Bank, HSBC Holdings Plc.
Key Drivers • Over the forecast period, the global neobanking market is predicted to rise due to an increase in demand for consumer convenience in the banking industry.
Market Opportunities • During the market projection period, the IT department, which serves numerous sectors globally and locally, will be heavily reliant.

 


Frequently Asked Questions (FAQ) :


Table of Contents

 

1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions

 

2. Research Methodology

 

3. Market Dynamics

3.1 Drivers

3.2 Restraints

3.3 Opportunities

3.4 Challenges

 

4. Impact Analysis

4.1 COVID-19 Impact Analysis

4.2 Impact of the Ukraine-Russia War

 

5. Value Chain Analysis

 

6. Porter’s 5 forces model

 

7. PEST Analysis

 

8. Neo banking Market Segmentation, by Service Type

8.1 Mobile Banking

8.2 Payments & Money Transfer

8.3 Checking/Savings Account

8.4 Loans

8.5 Others

 

9. Neo banking Market, by Account type

9.1 Business

9.2 Savings

 

10. Neo banking Market, by Application

10.1 Personal

10.2 Business

 

11. Regional Analysis

11.1 Introduction

11.2 North America

11.2.1 the USA

11.2.2  Canada

11.2.3  Mexico

11.3 Europe

11.3.1  Germany

11.3.2  the UK

11.3.3  France

11.3.4  Italy

11.3.5  Spain

11.3.6  The Netherlands

11.3.7  Rest of Europe

11.4 Asia-Pacific

11.4.1  Japan

11.4.2  South Korea

11.4.3  China

11.4.4  India

11.4.5  Australia

11.4.6  Rest of Asia-Pacific

11.5 The Middle East & Africa

11.5.1  Israel

11.5.2  UAE

11.5.3  South Africa

11.5.4  Rest

11.6 Latin America

11.6.1  Brazil

11.6.2  Argentina

11.6.3  Rest of Latin America

 

12. Company Profiles  

12.1 Atom Bank Plc

12.1.1 Financial

12.1.2 Products/ Services Offered

12.1.3 SWOT Analysis

12.1.4 The SNS view

12.2 BBVA S.A

12.3 BMTX, Inc.

12.4 Chime Financial

12.5 Citigroup Inc

12.6 Dave, Inc.

12.7 Deutsche Bank AG

12.8 Digibank (DBS Bank Ltd.)

12.9 Equitable Bank

12.10 HSBC Holdings Plc

 

13. Competitive Landscape

13.1 Competitive Benchmarking

13.2 Market Share Analysis

13.3 Recent Developments

 

14. Conclusion

An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of good and accurate research report and selecting the best methodology to compete the research is the toughest part. Since the research reports we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach at a stage wherein we can provide our clients best and accurate investment to output ratio.

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The 5 steps process:

Step 1: Secondary Research:

Secondary Research or Desk Research is as the name suggests is a research process wherein, we collect data through the readily available information. In this process we use various paid and unpaid databases which our team has access to and gather data through the same. This includes examining of listed companies’ annual reports, Journals, SEC filling etc. Apart from this our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various university as well as individual libraries.

Secondary Research

Step 2: Primary Research

When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data.  This type of research is focused on gaining content specific facts that can be sued to solve specific problems. Since the collected data is fresh and first hand therefore it makes the study more accurate and genuine.

We at SNS Insider have divided Primary Research into 2 parts.

Part 1 wherein we interview the KOLs of major players as well as the upcoming ones across various geographic regions. This allows us to have their view over the market scenario and acts as an important tool to come closer to the accurate market numbers. As many as 45 paid and unpaid primary interviews are taken from both the demand and supply side of the industry to make sure we land at an accurate judgement and analysis of the market.

This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses and observation of on filed participants. The below mentioned chart should give a better understanding of the part 1 of the primary interview.

Part 2: In this part of primary research the data collected via secondary research and the part 1 of the primary research is validated with the interviews from individual consultants and subject matter experts.

Consultants are those set of people who have at least 12 years of experience and expertise within the industry whereas Subject Matter Experts are those with at least 15 years of experience behind their back within the same space. The data with the help of two main processes i.e., FGDs (Focused Group Discussions) and IDs (Individual Discussions). This gives us a 3rd party nonbiased primary view of the market scenario making it a more dependable one while collation of the data pointers.

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