Smartphone penetration boosts Neobanking globally, study shows
By Puja Sharma
Neobanking Market is expected to project a CAGR of 48.90% during the forecast period, 2021-2031. The neo banking market is globally driven by features like simplicity, speed, cost-effectiveness, and improved functionality offered to the customers.
Reportlinker.com announced the release of the report “Neobanking Market: Segmented: By account type; By application and Region –Analysis of Market Size, Share and Trends for 2014 – 2019 and Forecasts to 2030″
Product overview
Neobanks is a new kid in the financial world. They are a type of direct bank that is completely online with no physical branches and provide complete banking solutions to its customers. Neobanking offers everything a traditional bank has to offer from opening a bank account to money lending, money transfers, and much more. There are two kinds of Neobanks, first which have no banking license and partner up with a traditional bank such as Up bank in Australia which is partnered with Bendigo Bank, and second are neobanks with a full banking license of their own such as Xinja and Volt. Some of the first-ever Neobanking organizations include Simple, GoBank, and Moven.
Market highlights
Neobanking Market is expected to project a CAGR of 48.90% during the forecast period, 2021-2031
The neo banking market is globally driven by features like simplicity, speed, cost-effectiveness, and improved functionality offered to the customers. The wide varieties of products accessible are unlimited, which is most likely to increase market development over the forecasted period.
The rising smartphone penetration in both developed and developing countries is also a factor supporting the neo banking market as it is boosting the demand for online and app-based banking. Characteristics of the neo banking market such as its convenience, cost-effectiveness, online money tracking option, unique experience for customers, and easy payouts make it popular as well as one of the fast-growing FinTech markets globally.
Global Neobanking market: Segments
According to account type the neo banking market includes neo and challenger banks. Challenger banks are banks that are small retail banks to compete for business against the bigger nationalized banks. It is divided into the business account and savings account.
The business account had the largest market share in 2018 due to its wide range of management services such as credit management, and asset management. It dominated the global market in 2018 in terms of revenue share. This segment is also expected to register a high CAGR in 2026. The growth factors for the neo banking industry are cost-effective and convenient. Though the authenticity and financial security factors may bring disturbances in its path.
The application segment includes the personal and the enterprise sector. Enterprises are adopting this neo banking market as they facilitate better management of payments and all other online services while the personal application segment is anticipated to register the highest CAGR in the future.
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