Neobanking sales are expected to reach US$ 2,595 billion globally by 2022, according to Fact.MR, representing a startling double-digit CAGR of over 44%. Neobanking is more popular among consumers because of its contactless nature. The demand for neo banking is also being driven by the incorporation of artificial intelligence and machine learning.
In the past, the global neo-banking market expanded at a CAGR of 30% from 2015 to 2021. The COVID-19 epidemic harmed the supply and demand chains of end-user sectors, but because it is contactless, it also increased the use of neo banking. Neobanking was crucial in helping businesses survive the epidemic, thus it is anticipated that demand will increase during the assessment period.
Neobanking is also heavily used by businesses because it offers transparent transactions. Businesses have demonstrated a rising preference for adopting online payment gateways to meet workload demands as the number of start-ups has increased over the past two years. The demand for neo-banking is being positively impacted by all of these causes.
Important conclusions from the market study
- Business accounts are anticipated to have more than 50% of the market share in the new banking sector.
- Businesses anticipate having a market share of more than 40% of the new banking market, according to the application.
- The neobanking sector is anticipated to hold up to 30% of the European market.
- Neobanking is anticipated to hold close to 25% of the market in the Asia Pacific.
- By the end of 2022, the global neobanking industry is anticipated to be worth US$ 67 Bn.
- Atom Bank and credit Kudos teamed up in March 2021 to support the recovery of small enterprises. The firms have taken this step to aid in the recovery of damages brought on by the COVID-19 pandemic.
- Several well-known players in the neo banking sector include Atom Bank PLC, Ubank Limited, Simple Finance Technology Corp., Fidor Bank Ag, Movencorp Inc., Monzo Bank Ltd., Mybank, N26, Revolut Ltd., and Webank, Inc.
Neobanking is expanding as a result of an increase in new firms, startups, and entrepreneurs around the world. Online payment channels are preferred by the majority of businesses. Due to their availability and lack of territorial restrictions, neo-banking platforms have become increasingly important to enterprises.
Neobanking also provides transparency because every transaction is documented and can be used as proof in cases where payments are disputed. As a result, businesses use net banking to access their corporate accounts. Due to the aforementioned factors, business accounts are anticipated to account for more than 40% of all account types in neobanking.