Neobanks

Fintech Market (FinTech)

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2024: The global neobank market grew 45.6% over the year to reach $143.29 billion

In 2024, the global market for neobanks amounted to 143.29 billion. For comparison, a year earlier this figure was estimated at $98.4 billion. Thus, an increase of 45.6% was recorded. Industry data is provided in the Fortune Business Insights survey published in early March 2025.

Neobanks are digital-based financial institutions that provide their services through mobile and/or web applications. Such banking institutions communicate with customers and offer services without offices, branches and branches. By minimizing infrastructure costs, neobanks can pay high deposit rates and charge low transaction fees. Given that the vast number of people in the world are not covered by modern financial services, non-banks play an increasingly significant role in their maintenance.

The study says that the COVID-19 pandemic has served as a catalyst, creating a favorable environment for neobanks: these organizations are able to effectively manage basic services remotely - without the need for a personal presence of the client. This approach has become especially popular in conditions of self-isolation. In addition, digital payments, online insurance services and other financial products with Internet access are becoming increasingly popular among consumers: non-banks are actively developing these areas.

A significant driver of the market is technological advances, including the introduction of artificial intelligence and machine learning. AI algorithms help analyze huge amounts of data, identifying complex relationships and improving the prediction of customer behavior. Due to this, financial institutions can more accurately determine the creditworthiness of the borrower, which reduces the risk of non-payments and increases the efficiency of managing credit assets. In addition, neobanks use AI to speed up customer service - including by using voice assistants. Some neobanks are rolling out cryptocurrencies and blockchain technology, giving users the ability to manage their digital assets directly in a banking app.

Analysts call cybersecurity problems a deterrent in the neobank market. The banking sector as a whole is one of the main targets for hackers and fraudsters due to the huge amount of confidential financial information it works with. Therefore, neobank customers face a wide variety of threats, including phishing attacks and malware distribution.

By service type, the market is divided into savings/settlement accounts, payments and money transfers, mobile banking, loans/insurance/investments, etc. In 2024, the first of these segments made the greatest contribution to the total volume of the industry. From a regional point of view, Europe leads, which accounted for $54.09 billion in revenue. For comparison, in 2023 this figure was $37.71 billion. The Asia-Pacific region is growing at the highest CAGR. The list of major players in the global industry includes:

• Nu Pagamentos S.A;
• SoFi;
• Chime Capital;
• Revolut;
• N26 AG;
• Monzo Bank Limited;
• Varo Bank;
• Starling Bank;
• Atom bank plc;
• Upgrade.

In 2025, costs in the neobank market are expected to reach $210.16 billion. Fortune Business Insights analysts believe that in the future, the CAGR will be 48.9%. Thus, by 2032, spending on a global scale could exceed $3.4 trillion.^[1]

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