Evolve Business Intelligence has published a research report on the Global Neo and Challenger Bank Market, 2021–2030. The global Neo and Challenger Bank market is projected to exhibit a CAGR of around 49.4% during the forecast period of 2022 to 2030.
Evolve Business Intelligence has recognized the following companies as the key players in the global Neo and Challenger Bank Market are WeBank, Fidor Solutions, Atom Bank, Monzo Bank Limited, Movencorp Inc, MYbank, Simple Finance Technology Corporation, Tandem Bank, UBank Limited.
Market Highlights
The global Neo and Challenger Bank market is projected to be valued at $ 657.7 Billion by 2030, recording a CAGR of around 49.4% during the forecast period. Neo-bank is a digital-only bank that does not have any physical branches or operates under a partnered bank license in the market. These banks offer remittance and money transfer services, as well as digital and mobile-first financial payment solutions, lending, checking and savings accounts, mortgages, and insurance, all through mobile apps. Challenger banks are well-established businesses that have a complete banking license to operate in the market. This bank offers investments & savings accounts, lending, mobile banking, credit cards, mobile banking, and others. By integrating and inventing multiple technologies into their product offerings, these banks are constantly challenging established traditional banks. Neo and challenger banks have combined to enter the banking system with advanced features, real-time services, and client-centric products and services, creating a threat to the market’s current traditional banks. The market is being driven by higher interest rates offered to customers over traditional banks, government and regulatory support for banking activities, and increased convenience provided through mobile applications.
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The COVID-19 outbreak boosted the Neo and Challenger Bank markets significantly. As people were more conscious of the significance of conserving money, the demand for banking services increased. Neo Banks has grown to include a wide range of banking services, including loans, savings accounts, investments, and insurance. Under COVID-19, the Neos Bank Co-operative is the first mutual banking organization to open. The Neos Bank aims to support local initiatives and projects by providing money, technical assistance, and counseling for fresh ideas and start-ups, as well as loans for those who need a hand getting their business started.
Segmental Analysis
The global Neo and Challenger Bank market has been segmented based on the service type, end-user, and region.
By Mode of Service Type, the Neo and Challenger Bank market is segmented based on Loans, Mobile Banking, Checking & Savings Accounts, Payment & Money Transfers, and Others. The Payment & Money Transfers segment is expected to have the largest market share, due to the increasing usage of online and mobile transactions in the region. Mobile banking is forecasted to have the fastest-growing CAGR in Neo and Challenger Bank market due to the increasing adoption of smartphones, which can be used to perform bank transactions. The use of mobile banking services has boomed due to its ease and convenience, helping banks to reach more customers and remain competitive.
Based on End-User, the Neo and Challenger Bank market is segmented based on Business and Personal. The Business segment will be the fastest-growing. This is attributed to the increasing number of businesses and the rise of peer-to-peer lending platforms. Firms that do not have a bank account often use alternative financial services options such as cash and money orders, which are expensive. However, the need for a bank account is still there, and banks have the opportunity to tap into this market by offering competitive fees and competitive interest rates. The personal segment is expected to have the fastest-growing CAGR during the forecast period due to growing Internet penetration, rapid adoption of mobile banking, and increasing awareness about financial management.
Regional Analysis
The Neo and Challenger Bank market is divided into four regions: North America, Europe, Asia-Pacific, South America. The North American region is projected to have the largest share of the global Neo and Challenger Bank market, followed by Europe and the Asia Pacific region. The changing customer preference for digital banking and the expanding consumer demand for new-age financial services Consumer use of new-age financial services is increasing at the expense of established banks, which is driving the rise of the neo and challenger bank industry. The Asia-Pacific region is projected to grow at the fastest CAGR because its middle-class population will continue to increase and digitization will further take hold in the industry. The European region is set for a significant share of this market due to the increased use of mobile banking, a large number of financial service providers, and increasing technological advancements. Globally, the need for entrepreneurs to have access to financial products has become more prominent and is reflected in the rise in neo- and challenger banks providing products to small and medium enterprises.
