Westford, USA, Jan. 05, 2023 (GLOBE NEWSWIRE) — According to a recent market research report, neo banking market is expected to experience profitable growth in the near future due to increasing demand from its user base for easily accessible financial services. Neo banks are completely digital banks with no physical locations. Instead, these mobile-only fintech companies rely heavily on technology to provide specialized banking experiences that traditional banks cannot offer.
According to SkyQuest’s market analysis, neobanking has revolutionized the global financial services business by leveraging emerging technologies and innovative solutions. India leads the adoption race with an adoption rate of 87%, well above the global average of 64%. In addition, expectations for better customer experience and specialized products create opportunities for neo-banking models. According to research data, there are more than 23 million neo bank consumers in the United States and it is projected to expand from approximately 47 million to 50 million users by 2025.
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Neo Banking Platforms receives profitable investments from Leading Financial Group
According to SkyQuest’s market research, neobanks like Chime and Varo will have about 19 million US account holders between 2021 and 2025. By the end of 2025, about 40 million US citizens will have digital-only bank accounts. Leading global investors will be interested in the Southeast Asian region to target untapped markets and people. To further understand the market, the latest research report on the neo-banking market can provide a comprehensive view of the key dynamics of demand for each sector in the highest spending regions of the world.
By providing unique savings and investment features for financial inclusion for many segments of society, including but not limited to women, teenagers, LGBTQ, the gig economy, small businesses and other stakeholders, neobanking will play an important role in digitizing the world. . In addition, collaborations and innovations driven by leading banks, well-known technology players and even regulatory organizations can become increasingly common.
The Business Account Segment dominates the UK market with over 60% share
The UK trade sector offers lucrative opportunities for SMEs to become part of newer revenue streams. E-commerce market generates more than 35% of revenue. Increasing adoption of mobile phones among the 18-25 age group is one of the key drivers for the growth of the sector. In addition, Neo banks are strategically changing and updating their business service offerings to meet the growing needs of enterprise end-users and SMEs, emphasizing international transfers and instant credit limits.
Asia Pacific to Offer Large Consumer Base for New Banking Startups
The enterprise application segment in Japan is expected to register a growth rate of 50% in the coming years. Going cashless is projected to save banks about 9.4 billion a year, which will lead to significant growth for neobanks. According to a SkyQuest report, some of the leading companies have transacted more than 10,000 crore across all product lines. In addition, several well-known neo banking platforms are developing a reliable service offering to increase the number of their customers.
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The market insights covered in the research report reflect potential trends that could positively impact the growth of the neo-banking market and guide market participants on the risks they need to consider while developing future roadmaps for their businesses.
Market Participants Aim to Diversify Product Portfolio to Dominate the Market
According to SkyQuest’s market data, in terms of global comparison, the US has the most significant transaction value ($1,426.00 billion in 2023). Additionally, the number of users in the neo-banking segment is expected to reach 376.89 million by 2027. Therefore, market leaders will try to take advantage of such a huge market with significant investments and strategic collaborations. In addition, the rapid rise of easy-to-access banking services and the rise of digital-only banks are projected to strengthen the market’s competitiveness in the coming years.
The market report offers an in-depth analysis of the target market to help new entrants and established players gain comprehensive information about the market. Furthermore, the research report aims to enable readers to find pockets of profitable growth in the market.
Key developments in the Neo Bank market
- Tonik, the Philippines’ first neo bank, has agreed to acquire TendoPay, which provides payroll finance solutions to businesses. Tonik expanded its core loan portfolio and integrated payroll financial services into its operations as a result of the acquisition.
- BharatATM, a neo banking platform, enables kiranas and neighborhood retail businesses to provide customer banking services. The startup’s recent ‘bank sakhi’ project, which aims to ‘financially empower women’, has helped 11,230 women earn an average of Rs 8K per month.
Questions Answered by Latest Research Report on Neo Bank Market
- Which region is predicted to dominate the global neobank market?
- What are the important trends that will highly influence the growth of the market?
- What are the successful strategies of global market leaders?
- What is the expected market growth during the forecast period?
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Some of the prominent players in the Neo Bank market are:
- Atom Bank PLC (UK)
- Movencorp Inc. (USA)
- Fidor Bank AG (Germany)
- Mybank (China)
- Monzo Bank Ltd. (Great Britain)
- Revolut Ltd. (Great Britain)
- N26 (Germany)
- Simple Finance Technology Corp. (USA)
- Webank, Inc. (Demon)
- Ubank Limited (South Africa)
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SkyQuest Technology is a leading development consulting firm providing market intelligence, commercialization and technology services. It has 450+ happy customers globally.
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