Neobanking Estimated to See Double-Digit CAGR as of 2022
The digital-only bank account ownership is not equal among women and men across countries worldwide
The adoption and development of neobanks was accelerated throughout the pandemic. Many consumers switched to online services in various aspects of their lives, and banking was no different. The global neobanking market size has almost doubled between 2020 and 2022, proving the increased adoption of neobanking services, as found by this report. Whereas the neobanking user distribution in terms of age and gender shows gaps between old and young, and women and men. Across various countries, the gender gap between adults with a digital-only bank account can be observed in almost every country, with men owning a digital-only bank account displaying a larger share than women. Additionally, when looking at the age distribution, older generations tend to have less financial relationship with neobanks than the younger ones. Whereas in countries like Germany and Hong Kong, the age distribution of neobanking users was rather even.
Brazil is among the leading countries in digital banking
Brazil displays one of the highest shares of digital-only bank account adoption, reaching close to half of all adults in the country. Furthermore, this share is projected to increase significantly through 2027, according to sources cited in the report. When compared to the global average, Brazil also shows high shares of digital-only banking users among all age groups, led by adults aged 25-34. Among the top 20 independent neobanks, due to the high digital banking use in the country, Brazil’s NU Bank ranked extremely high in terms of valuation at the end of 2021, beating neobanks from Europe, America, and Asia. The number of annual fintech startups (incl. digital banking) in Brazil has also experienced continuous growth and nearly tripled from 2017 to 2021, demonstrating the country’s leading position in the field of neobanking.
Questions Covered:
- What are the top three trends in the Neobanking landscape globally in 2022?
- Who are the key players in neobanking across the globe in 2022?
- What is the forecasted share of adults with a digital-only bank account in 2027?
- What share of banked consumers had financial relationships with neobanks in 2021?
- What is the specific consumer type that is the most ready to switch to a Neobank?
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Table of Contents
1. Management Summary
2. Global Market Overview
- Top 3 Trends in Neobanking, October 2022
- Neobanking Market Size, in USD billion, 2022 & 2027f
- Top 20 Independent Neobanks, by Valuation, in USD billion, December 2021
- Share of Primary Financial Relationships, by Type of Bank, in % of Banking Service Consumers, August 2021
- Most Used Neobank Products, in % of Neobanking Service Consumers, August 2021
- Breakdown of Primary Financial Relationships With Neobanks, by Age, in % of Banking Service Consumers, August 2021
- Share of Consumers Who Rate Importance of Seamless Integration of Financial Providers as Extremely or Very High, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
- Share of Banking Service Consumers Who Are Willing to Expand the Use of Products and Services if Neobanks Partnered With the Most Trusted Financial And/or Hi-Tech Company, in %, August 2021
3. Europe
3.1. Regional
- Neobanks Current Developments Overview, October 2022
- Share of Primary Financial Relationships, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Are Willing to Expand Use of Products and Services if Neobanks Partnered With Most Trusted Financial And/or Hi-Tech Company, in %, August 2021
3.2. United Kingdom
- Top 4 Neobanks, by Market Account Holders, in millions, 2022e
- Breakdown of Personal Bank Accounts, in % of Account Numbers, 2018 - 2021
- Breakdown of Micro-Business Bank Accounts, in % of Account Numbers, 2019 - 2021
- Breakdown of Customers Who Switched to Digital Challenger Banks in The Past 12 Months, by Age, in %, July 2021
- Share of Adults Who Would Consider Banking With a Provider That Does Not Have Any Branches, in %, February 2022
- Share of Consumers Who Rate Importance of Seamless Integration of Financial Providers as Extremely or Very High, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
3.3. France
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
3.4. Spain
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
3.5. Poland
- Share of Internet Users Who Used Online Financial Services, by Service Type, in %, Q3 2021
3.6. Italy
- Share of Internet Users Who Used Online Financial Services, by Service Type, in %, Q3 2021
3.7. Romania
- Share of Internet Users Who Used Online Financial Services, by Service Type, in %, Q3 2021
3.8. Ireland
- Share of Adults With a Digital-Only Bank Account, in %, March 2022 & 2027f
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
3.9. Portugal
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
3.10. Germany
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
- Share of Adults With a Digital-Only Bank Account, by Gender, in %, March 2022
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
- Share of Consumers Who Rate Importance of Seamless Integration of Financial Providers as Extremely or Very High, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
3.11. Denmark
- Share of Internet Users Who Used Online Financial Services, by Service Type, in %, Q3 2021
3.12. Russia
- Revenue of Tinkoff Neobank, in RUB billion, and Year-on-Year Change, in %, Q3 2019-Q2 2021 & Q4 2021
- Number of Customers of Tinkoff, in millions, and Quarter-on-Quarter Change, in %, Q1 2020-Q2 2021 & Q4 2021 - Q1 2022
4. North America
4.1. United States
- Number of Neobank Account Holders, in millions, and Share of Population, in %, 2021-2025f
- Top Challenger Banks, by Number of Consumers With a Checking or Spending Account, in millions, Q1 2022
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
- Share of Adults With a Digital-Only Bank Account, by Gender, in %, March 2022
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
- Share of Consumers Whose Primary Checking Account is With a Digital Bank, by Generation, in % of Consumers, October 2020, July 2021 and January 2022
- Share of Primary Financial Relationships, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Consumers Who Rate Importance of Seamless Integration of Financial Providers as Extremely or Very High, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
- Share of Banking Service Consumers Who Are Willing to Expand Use of Products and Services if Neobanks Partnered With Most Trusted Financial and/or Hi-Tech Company, in %, August 2021
4.2. Canada
- Share of Adults Who Used In-Branch Banking, in %, 2018 & 2021
5. Asia-Pacific
5.1. Regional
- Neobanks Current Developments Overview, October 2022
- Share of Primary Financial Relationships, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Are Willing to Expand Use of Products and Services if Neobanks Partnered With Most Trusted Financial and/or Hi-Tech Company, in %, August 2021
5.2. Hong Kong
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
- Breakdown of Fintech Segment Distribution, in %, 2021
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
5.3. Singapore
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
5.4. Australia
- Share of Consumers Who Rate Importance of Seamless Integration of Financial Providers as Extremely or Very High, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
5.5. South Korea
- Kakao Bank Operating Revenue, in KRW billion, Q2 2021-Q2 2022
- Number of Kakao Bank Users, in millions, Q2 2021-Q2 2022
- Breakdown of Kakao Bank Users, by Age, in %, Q2 2022
6. Latin America
6.1. Regional
- Neobanks Current Developments Overview, October 2022
- Share of Primary Financial Relationships, by Type of Bank, in % of Banking Service Consumers, August 2021
- Breakdown of Distribution of Fintech Companies, by Segment, in %, 2021
- Average Annual Growth Rate of Fintech Segment, by Fintech Segment, in %, 2017-2021
- Share of Banking Service Consumers Who Are Willing to Expand Use of Products and Services if Neobanks Partnered With Most Trusted Financial and/or Hi-Tech Company, in %, August 2021
6.2. Brazil
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
- Share of Adults With a Digital-Only Bank Account, by Gender, in %, March 2022
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
- Share of Consumers Who Rate Importance of Seamless Integration of Financial Providers as Extremely or Very High, by Type of Bank, in % of Banking Service Consumers, August 2021
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
- The number of Annual Fintech Startups, incl. “Digital Banking”, 2017-2021
6.3. Mexico
- Share of Adults With a Digital-Only Bank Account, in %, 2022* & 2027f
- Share of Adults With a Digital-Only Bank Account, by Gender, in %, March 2022
- Share of Digital-Only Banking Users, by Age, in % of Adults, March 2022
- Share of Banking Service Consumers Who Completely or Mostly Trust Their Bank, incl. “Neobanks”, in %, August 2021
6.4. Colombia
- Use of Online Financial Services, in % of Internet Users, Q3 2021
- Number of Annual Fintech Startups, incl. “Digital Banking”, 2017-2021
7. Middle East and Africa
7.1. Middle East
- Neobanks Current Developments Overview, October 2022
- Share of Respondents Who Prefer to Do Their Banking Online in Some Form, in %, March 2021- March 2022
7.2. Africa
- Number of Neobanks, 2012-2021
- Top 10 Neobanks, by Number of Customers, in thousands, 2021
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Ally
- Anext
- Chime
- Chipper
- Current
- Judo-Bank
- K-Bank
- Kakao-Bank
- Kuda
- Monzo
- N26
- NU Bank
- Nubank
- Opay
- Opay
- Revolut
- SoFi
- Starling
- Tinkoff
- Tyme Bank
- Varo Money
- WeBank
Methodology
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