Neo and Challenger Bank Market By Bank Type (Challenger Bank, Neo Bank), Geography (North America, Europe, APAC, Rest of the World), Industry Trends, Estimation & Forecast, 2017 - 2025

Challenger banks are comparatively small retail banks which are established for the purpose of competing for business with large, long-established national banks. While Neo bank is referred as web based bank which provides complete range of banking solutions without having any physical offices or branch. Growing investment in financial technology has boosted the market for challenger and Neo banks. For instance, according to Accenture and Partnership fund for New York city, worldwide investment in financial technologies at the end of 2014 increased around three times and reached $12.2 billion.

Market Determinants

Consumer convivence offered by banks is a prime factor driving the growth of challenger and neo banks all around the globe. Additionally, cost-efficiency & fast servicing, provision of advance banking features, healthier interest rates, and increasing smart mobile devices penetration also helps the challenger and neo bank market for further growth. Further, growing investment in Neobanking also boost the market drastically. For instance, Atom Bank received a 45-million-pound investment from the Spanish bank BBVA in month of January 2016. Security and privacy of the financial data and customer reluctance towards adoption of Neobanking might hinder the market growth.

Challenger and Neo Bank Market Segmentation

By Bank Type • Challenger Bank • Neo Bank By Geography • North America • Europe • APAC • Rest of the World