Neobanking Market Size Worth $722.60 Billion By 2028 | CAGR: 47.7%: Grand View Research, Inc.

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Jan 28, 2021, 04:35 ET

SAN FRANCISCO, Jan. 28, 2021 /PRNewswire/ -- The global neobanking market size is expected to reach USD 722.60 billion by 2028, according to a new report by Grand View Research, Inc. It is anticipated to register a CAGR of 47.7% from 2021 to 2028. The market growth is driven by various factors, such as lower interest rates as compared to traditional banks, improved user convenience, and favorable government regulations. The demographic shift toward digitization, coupled with escalating demand for digital apps across the FinTech industry, is also expected to boost the market growth over the forecast period.

Key suggestions from the report:

The ability of neobanks to offer a faster and transparent model and their low-cost structure are the key factors influencing the market growth
The growing adoption of mobile and digital banking as the mode of payment by small and medium-sized enterprises and large enterprises is expected to propel the growth of the business account segment over the forecast period
Factors such as reduced reloading fees, no withdrawal expenses, no monthly fees, and low cost of transactions are expected to contribute to the growth of the personal application segment
Europe dominated the market in 2020 and is expected to retain its position over the forecast period, owing to the entry of a large number of new vendors in the regional market

Read 120 page research report with ToC on "Neobanking Market Size, Share & Trends Analysis Report By Account Type (Business Account, Savings Account), By Application (Enterprises, Personal), By Region, And Segment Forecasts, 2021 - 2028" at: https://www.grandviewresearch.com/industry-analysis/neobanking-market

The financial industry is focusing on integrating technology with financial operations and creating customer-centric services. As a result, new entrants such as neobanks are making a huge impact on the financial industry. Neobanking supports businesses in bringing down operational costs and increasing their profit margin.

Factors such as the accelerated expansion of the customer base, innovative revenue generation and modernization models, and growing mergers and acquisitions activities are expected to significantly contribute to the market growth over the forecast period. Neobanks enable customers to save money, especially on international transactions, and efficiently manage their finances. Neobanks are creating an ecosystem of services around their infrastructure, which is shifting the banking value from the branches to their API layer, thereby enabling users to carry out most of their banking activities on the app.

The less complex IT systems and streamlined operating models of neobanks are some factors creating growth opportunities for the market. Neobanks also have fewer legacy compliance issues compared to traditional banks. Moreover, neobanks are adopting open APIs to offer a seamless experience to their customers and explore opportunities for expanding their customer streams and revenue.

Grand View Research has segmented the global neobanking market on the basis of account type, application, and region:

Neobanking Account Type Outlook (Revenue, USD Billion, 2017 - 2028)

Business Account
Savings Account

Neobanking Application Outlook (Revenue, USD Billion, 2017 - 2028)

Enterprises
Personal
Others

Neobanking Regional Outlook (Revenue, USD Billion, 2017 - 2028)

North America

U.S.
Canada

Europe

U.K.
Germany

Asia Pacific

China
Japan
India

Latin America

Brazil

Middle East & Africa

List of Key Players of Neobanking Market

Atom Bank PLC
Fidor Bank Ag
Monzo Bank Limited
Movencorp Inc.
MyBank
N26
Revolut Ltd.
Simple Finance Technology Corporation
Ubank Limited
WeBank, Inc.

Find more research reports on Next Generation Technologies Industry, by Grand View Research:

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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