Neobanking is referred as an innovative banking technology which is comprised of web based banks, which provide complete range of banking solutions without having any physical offices or branch. Neobanks are sometimes also referred to online banks or direct banks. Neobanks are advance and sophisticated from traditional banks and offera wide range of services such as accounts and transactions, credits, asset management, investments, deposits and variousothers. Growing investment in financial technology has boosted the market for Neobanking. For instance, according to Accenture fund and Partnership fund for New York city, global investment in financial technologies at the end of 2014 increased three times and reached $12.2 billion, as compared to that in 2013.
Consumer convivence is a prime factor driving the growth of neobanking around the globe. Additionally, cost effective servicing, provision of advanced features, better interest rates, and increasing mobile device penetration also helps the Neobanking market to grow further.. In addition to this, growing investment in neobanking is also driving the market drastically. For instance, Atom Bank received a 45-million-pound investment from the Spanish bank BBVA in month of January 2016. Privacy and security of the financial data and customer reluctance towards adoption of neobanking might hinder the market growth.
Global neobanking market is segmented on the basis of account type and by region. By account type the market is segmented into business account and savings account. Geographically, global Neobanking market is bifurcated as North America, Europe, Asia-Pacific, and Rest of the World.
Europe is one of the key regions for neobanking market. Online bank ING Direct, one of the most popular neobank of Spain, revealed that the overall balance of the accounts of its clients was more than 27.5 billion Euros in late summer of 2015. This is considerably higher than in some of the traditional foreign banks operating in Spain.
The neobanking market is in its nascent stage and anticipated to gain popularity in the near future. Various players are trying to enter the market. However, the entry is restricted due to the stringent government standards regarding license and regulations of financial institutes. For instance, Bank of England issued the first license to a completely mobile bank, Atom Bank in mid-2016.
Top players of the market are Atom Bank, Fidor Bank, Monzo Bank, Moven, MYbank, N26, Simple, Starling Bank, Tandem Bank, and WeBank.
Neobanking Market Segmentation
By Account Type
• Business Account
• Saving Account
• North America
• Rest of the World
Key Market Players
• Atom Bank
• Fidor Bank
• Monzo Bank
• Starling Bank
• Tandem Bank