Neobanking Market Report 2026

The neobanking market size has grown exponentially in recent years. It will grow from $261.4 billion in 2025 to $385.05 billion in 2026 at a compound annual growth rate (CAGR) of 47.3%. The growth in the historic period can be attributed to increasing smartphone adoption, dissatisfaction with traditional banking services, expansion of digital payment ecosystems, supportive regulatory sandboxes, growth of fintech innovation hubs.

The neobanking market size is expected to see exponential growth in the next few years. It will grow to $1.77 trillion in 2030 at a compound annual growth rate (CAGR) of 46.6%. The growth in the forecast period can be attributed to growing demand for fully digital financial ecosystems, rising focus on financial inclusion, expansion of cross-border digital banking services, increasing integration of ai-driven credit assessment, growing adoption of open banking frameworks. Major trends in the forecast period include increasing adoption of mobile-first banking platforms, rising demand for personalized digital financial services, growing integration of ai-based customer support, expansion of embedded finance offerings, enhanced focus on low-cost banking models.

The growing smartphone penetration is expected to boost the growth of the neobanking market going forward. A smartphone is a mobile device that combines the functionality of a traditional mobile phone with advanced computing capabilities. The neobanking market experiences substantial growth due to increased smartphone penetration, enabling broader access to digital financial services through mobile apps and allowing neobanks to cater to a larger audience with convenient on-the-go banking experiences, thereby driving market adoption. For instance, in February 2023, according to a report published by Uswitch Limited, a UK-based online and telephone comparison and switching service, there were 71.8 million active mobile connections in 2022, reflecting a 3.8% growth from the previous year. By 2025, the UK is projected to have a population of 68.3 million, with an anticipated 95% smartphone penetration among the residents. Therefore, the growing smartphone penetration is driving the growth of the neobanking market.

Major companies operating in the neobanking market are emphasizing the development of innovations such as generative AI-powered customer assistants to enhance personalization, speed up service delivery, and offer customized financial guidance to users. A generative AI customer assistant is an artificial intelligence capability integrated into a neobank’s mobile or online platform that understands natural language, automates routine customer interactions, provides actionable financial insights, and improves the overall user experience. For instance, in December 2023, bunq B.V., a Netherlands-based digital banking company, introduced Finn, a generative AI-enabled personal assistant embedded within its app. This solution replaces conventional search functions, delivers conversational answers to money-management questions, provides spending and budgeting insights, and enables users to navigate banking features more efficiently through natural-language interaction.

In May 2023, Greenwood, a US-based digital banking platform tailored for Black and Latino communities, has announced its acquisition of Kinly, for an undisclosed amount. This acquisition adds approximately 300,000 Kinly customers to Greenwood's existing base of 1 million members, significantly expanding its reach and service offerings. Kinly is a US-based neobank.

Major companies operating in the neobanking market are Nubank, Chime Financial Inc., Revolut Ltd., Monzo Bank Ltd., N26 GmbH, Starling Bank Ltd., Varo Money Inc., SoFi Bank NA, Current Financial Inc., Bunq BV, WeBank Inc., Ubank Limited, KakaoBank Corp., Tinkoff Bank, Ally Bank, Dave Inc., Atom Bank PLC, Zopa Bank Limited, Vivid Money GmbH, Monese Ltd.

Western Europe was the largest region in the neobanking market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the neobanking market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the neobanking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The neobanking market includes revenues earned by entities by a full stack neobank or a front-end focused neobank. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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