Neobanking Market by Customer Type (Individuals, Small and Medium-Sized Enterprises (SMEs), Large Enterprises), by Business Model (B2B, B2C, B2B2C), by Product Type (Personal Banking, Business Banking), by Technology (Artificial Intelligence (AI), Blockchain, Cloud Computing, Big Data), Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Neobanking Market was valued at USD 67.0 Billion in 2024-e and will surpass USD 220.0 Billion by 2030; growing at a CAGR of 21.9% during 2025-2030.

The neobanking market refers to digital-first financial institutions that operate exclusively online, offering banking services without physical branches. These banks leverage advanced technologies like mobile apps, AI, and cloud computing to provide cost-effective, efficient, and user-friendly services such as savings accounts, payments, loans, and financial planning. Neobanks cater primarily to tech-savvy individuals and small businesses, offering seamless, personalized experiences and often lower fees compared to traditional banks. The market is experiencing rapid growth, driven by increasing smartphone adoption, the rise of fintech innovations, and shifting consumer preferences towards digital banking solutions.

Customer Type: Individuals Segment is Largest Owing to Growing Digital Adoption

The customer type segment in the neobanking market is dominated by individual consumers, who are increasingly adopting digital-first banking services due to the convenience, lower fees, and accessibility offered by neobanks. The rise of smartphone penetration, the shift to cashless transactions, and the growing preference for seamless, user-friendly banking experiences have played a crucial role in this transformation. Neobanks have tapped into the needs of tech-savvy individuals seeking hassle-free account management, instant payments, and personalized financial services.

The individual segment is expected to maintain its dominance due to the ever-expanding pool of digital banking users. Neobanks such as Chime, Monzo, and Revolut have tailored their offerings to appeal directly to individuals by providing free or low-cost services, superior mobile app experiences, and innovative features like budgeting tools, savings goals, and instant transaction alerts. With an increasingly tech-driven consumer base, the individuals segment is positioned for sustained growth, driven by consumer demand for cost-effective, digitally optimized financial solutions.

Business Model: B2C Segment is Fastest Growing Due to Consumer-Centric Models

In the business model category, the B2C (Business-to-Consumer) subsegment is witnessing the fastest growth. This growth is fueled by the increasing shift toward consumer-centric solutions that cater directly to end-users' financial needs, bypassing traditional bank intermediaries. Neobanks in the B2C space are leveraging digital platforms to offer users a seamless experience, from account opening to financial management, all without the need for physical branches. Customers enjoy services like instant account setup, fee-free transactions, and personalized financial planning tools—all accessible via mobile apps.

The B2C model has seen immense popularity as it aligns with the trend toward digital-first financial services. Companies like Revolut, N26, and Chime have capitalized on the growing demand for user-friendly, mobile-centric banking. Furthermore, this subsegment is benefiting from a global consumer shift towards digital-only platforms that offer a higher degree of personalization and flexibility, further fueling its rapid expansion.

Product Type: Personal Banking Segment is Largest Owing to Consumer Demand for Accessibility

The personal banking segment within neobanking is the largest owing to the extensive adoption by individual consumers who are seeking easy access to their financial services. Personal banking includes essential services such as savings accounts, checking accounts, loans, and credit cards. These services are increasingly favored by users looking for more affordable and efficient alternatives to traditional banks. As a result, personal banking services provided by neobanks are gaining ground due to their ease of use, low or no fees, and faster processing times.

The personal banking subsegment is growing exponentially as neobanks innovate to meet consumers’ evolving needs. With a significant focus on financial inclusivity and customer-centric service models, neobanks like Chime and Monzo have expanded personal banking offerings that include fee-free services, instant transfers, and integrations with other fintech tools. As consumers continue to prioritize convenience and flexibility, the personal banking subsegment is expected to remain the dominant force in the neobanking market.

Technology: AI Integration is Fastest Growing Owing to Automation and Personalization

Artificial Intelligence (AI) is the fastest-growing technology in the neobanking market, primarily because of its ability to enhance automation and provide personalized experiences. AI enables neobanks to analyze vast amounts of customer data to deliver tailored financial products and services. By utilizing machine learning algorithms, neobanks can offer real-time financial advice, predict spending behavior, and automate mundane tasks such as fraud detection and customer service interactions. These AI-driven capabilities help improve operational efficiency and elevate the overall customer experience.

The use of AI in neobanking also enables predictive analytics, allowing banks to offer personalized savings and investment advice. This technology is gaining traction with neobanks such as Revolut, which leverages AI for personalized budgeting tools and proactive financial health recommendations. As AI adoption increases across the sector, it will continue to play a crucial role in driving innovation and growth, creating even more competitive advantages for neobanks in the future.

Geography: North America Region is Largest Due to Strong Market Adoption

North America is the largest region in the neobanking market, driven by the rapid adoption of digital banking solutions, a tech-savvy population, and strong financial infrastructure. The United States, in particular, is a key driver of this growth, with widespread smartphone usage and a high demand for digital financial services. The regulatory environment in North America has also been conducive to the growth of neobanks, with clear guidelines for fintech companies, further boosting market confidence.

The region's dominance is also attributed to the large number of established neobanks such as Chime and Varo Bank, which have captured significant market share. In addition, North America continues to be a testing ground for new fintech innovations, as neobanks push for increased financial inclusion and better customer experiences. As more customers in North America continue to migrate away from traditional banking services, the region will likely maintain its leadership in the global neobanking landscape.

Competitive Landscape: Leading Companies Focus on Innovation and Expansion

The neobanking market is highly competitive, with a mix of established players and new entrants continually innovating to capture market share. Leading companies like Revolut, Chime, Monzo, and N26 are focusing on expanding their offerings, enhancing customer experiences, and entering new geographical markets. These companies are leveraging AI, blockchain, and cloud computing technologies to differentiate themselves in a crowded market. For instance, Revolut has expanded its product range to include cryptocurrency services, while Chime continues to offer new tools for financial management to appeal to young, digitally native consumers.

The competitive dynamics in the market are also influenced by ongoing partnerships and acquisitions, with companies seeking to enhance their technological capabilities and expand their service portfolios. As new players continue to emerge, neobanks are faced with the challenge of maintaining customer loyalty and scaling operations efficiently while navigating regulatory environments. This makes innovation a key differentiator, with top players investing in R&D to deliver unique and highly personalized banking solutions.

List of Leading Companies:

• Revolut
• Chime
• N26
• Monzo
• Varo Bank
• Wise (formerly TransferWise)
• Simple (formerly BankSimple)
• Starling Bank
• SoFi
• Current (Finco Services, Inc.)
• Lunar
• Oxygen
• Finom
• Bunq
• Zopa

Recent Developments:

• Revolut announced its expansion into several new countries in Asia Pacific, broadening its global presence and access to its suite of financial services.
• Chime secured $750 million in a Series G funding round to further its mission of providing financial services to underserved communities across the U.S.
• N26 acquired a Berlin-based fintech startup specializing in cryptocurrency, aiming to expand its product offerings in the digital asset space.
• Monzo launched advanced features for small businesses, including instant payments and better integration with accounting software, making it easier to manage finances on the go.
• Varo Bank announced a partnership with Visa to introduce new payment solutions, offering enhanced rewards and financial management tools for their users.

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