The global Neobanking Market size is expected to reach USD 722.60 billion by 2028, according to a new report by Grand View Research, Inc. It is anticipated to register a CAGR of 47.7% from 2021 to 2028. The market growth is driven by various factors, such as lower interest rates as compared to traditional banks, improved user convenience, and favorable government regulations. The demographic shift toward digitization, coupled with escalating demand for digital apps across the FinTech industry, is also expected to boost the market growth over the forecast period.
The
financial industry is focusing on integrating technology with financial
operations and creating customer-centric services. As a result, new entrants
such as neobanks are making a huge impact on the financial industry. Neobanking
supports businesses in bringing down operational costs and increasing their
profit margin.
Factors
such as the accelerated expansion of the customer base, innovative revenue
generation and modernization models, and growing mergers and acquisitions
activities are expected to significantly contribute to the market growth over
the forecast period. Neobanks enable customers to save money, especially on
international transactions, and efficiently manage their finances. Neobanks are
creating an ecosystem of services around their infrastructure, which is
shifting the banking value from the branches to their API layer, thereby
enabling users to carry out most of their banking activities on the app.
The
less complex IT systems and streamlined operating models of neobanks are some
factors creating growth opportunities for the market. Neobanks also have fewer
legacy compliance issues compared to traditional banks. Moreover, neobanks are
adopting open APIs to offer a seamless experience to their customers and
explore opportunities for expanding their customer streams and revenue.
Related Press
Release @ Neobanking Market Report
Neobanking Market Report Highlights
- The ability
of neobanks to offer a faster and transparent model and their low-cost
structure are the key factors influencing the market growth
- The growing
adoption of mobile and digital banking as the mode of payment by small and
medium-sized enterprises and large enterprises is expected to propel the
growth of the business account segment over the forecast period
- Factors such
as reduced reloading fees, no withdrawal expenses, no monthly fees, and
low cost of transactions are expected to contribute to the growth of the
personal application segment
- Europe
dominated the market in 2020 and is expected to retain its position over
the forecast period, owing to the entry of a large number of new vendors
in the regional market
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, the company offers market intelligence studies ensuring relevant and fact-based research across a range of industries including technology, chemicals, materials, healthcare and energy.
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