Neo and Challenger Bank Market - by Type (Neo Bank and Challenger Bank) and by Application (Personal and Business): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2018–2026

Description

The global Neo and Challenger Bank market, which was estimated at 18,604 (USD Million) in 2018 and is predicted to accrue earnings worth 394,648 (USD Million) by 2026, is set to record a CAGR of nearly 46.5% over 2019-2026. The report offers valuation and analysis of Neo and Challenger Bank market on a global as well as regional level. The study offers a comprehensive assessment of the industry competition, limitations, sales estimates, avenues, current & emerging trends, and industry-validated market data. The report offers historical data from 2016 to 2018 along with a forecast from 2019 to 2026 based on value (USD Million).

Introduction

Neobank is a type of digital bank that performs various banking operations online without having any branches established at physical locations. In addition to this, Neobank is consumer-centric and offer personalized online services to its customers. Precisely, these banks are FinTech firms offering only internet-based financial services to tech-savvy consumers. They provide value-added banking services, insurance, remittances, mobile payment services, money transfer services, and mortgage services to its customers online. Some of the examples of Neobank include Google Pay, Stash, PhonePe, Pockit, Cleo, Karat, Qube, and PayTm.

On other hand, Challenger banks are small and currently created retail financial institutions operating in the countries like the UK. They are the FinTech firms performing online-only operations without having any physical presence across the globe. These banks offer services like credit cards, mobile banking, lending, purchase & sale of cryptocurrency, and insurance products to the end-users.

Market Growth Drivers

Easy & quick access to the online banking services, real-time financial transactions, personalized online financial services, and high rate of interest offered by neo and challenger banks are expected to provide new growth avenues for the market over the forthcoming years. Apart from this, escalating smartphone demand and onset of innovative technologies like IoT, Big Data, and AI are likely to serve as major tools of growth for the neo and challenger bank market over the forthcoming years. In addition to this, huge unexplored market growth potential in emerging economies is going to be one of the major factors that will determine the business growth over the next couple of years.

Furthermore, service industry has dominated the overall economy and has accounted majorly towards GDP share of both developed countries as well as developing economies. Moreover, Neo and challenger bank industry is no exception to this and its online services have resulted in value creation for the customers. This, in turn, is likely to result in immense business growth over the years ahead.

European Market To Witness Optimal Growth And ROI Over 2020-2026

The growth of the regional market over the forecast timespan is due to massive presence of these financial institutions in the countries like the UK. Apart from this, the country possesses largest number of small & medium-sized enterprises in Europe and is succeeded by Germany.

Key players leveraging the market growth include Moven, Jibun Bank Corporation, Tandem Bank Limited, DBS, Simple, Pockit Limited, N26 GmbH, Koho Financial, Kakao Bank, Hello Bank, Timo, Fidor Solutions, MyBank, Holvi Payment Services, Monzo Bank Limited, Starling Bank, Atom Bank, and WeBank.

This report segments the global neo and challenger bank market into:

Global Neo and Challenger Bank Market: Type Analysis

• Neo Bank
• Challenger Bank

Global Neo and Challenger Bank Market: Application Analysis

• Personal
• Business

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

Table Of Content

• Chapter 1. Introduction
  • 1.1. Report description and scope
  • 1.2. Research scope
  • 1.3. Research methodology
    • 1.3.1. Market research process
    • 1.3.2. Market research methodology
•  
• Chapter 2. Executive Summary
  • 2.1. Global Neo and Challenger Bank Market, 2017-2026 (USD Million)
  • 2.2. Global Neo and Challenger Bank Market: Snapshot
•  
• Chapter 3. Neo and Challenger Bank Market - Industry Dynamics
  • 3.1. Introduction
  • 3.2. Market drivers
    • 3.2.1. Global Neo and Challenger Bank Market drivers: Impact analysis
    • 3.2.2. Convenience Offered to Consumers
    • 3.2.3. Growth Supporting Regulations
    • 3.2.4. Excellent Interest Rates and Low Transaction Charges
    • 3.2.5. Demographic Shift
  • 3.3. Market Restraints
    • 3.3.1. Global Neo and Challenger Bank Market restraints: Impact analysis
    • 3.3.2. Customer Acquisition
    • 3.3.3. Low Profitability
  • 3.4. Opportunities
    • 3.4.1. Global Neo and Challenger Bank Market opportunity: Impact analysis
    • 3.4.2. High smartphone penetration
  • 3.5. Porter's Five Forces Analysis
  • 3.6. Market attractiveness analysis
    • 3.6.1. Market attractiveness analysis, by Type
    • 3.6.2. Market attractiveness analysis, by application
    • 3.6.3. Market attractiveness analysis, by region
•  
• Chapter 4. Global Neo and Challenger Bank Market - Competitive Landscape
  • 4.1. Company Market Share Analysis
    • 4.1.1. Global Neo and Challenger Bank Market: company market share, 2018
  • 4.2. Strategic Development
    • 4.2.1. Acquisitions & Mergers
    • 4.2.2. New Therapy Launch
    • 4.2.3. Agreements, Partnerships, Collaborations, and Joint Ventures
    • 4.2.4. Research and Development and Regional Expansion
  • 4.3. Price Trend Analysis
  • 4.4. Technology Portfolio
•  
• Chapter 5. Global Neo and Challenger Bank Market - Type Analysis
  • 5.1. Global Neo and Challenger Bank Market: Type overview
    • 5.1.1. Global Neo and Challenger Bank Market revenue share, by Type, 2018 and 2026
  • 5.2. Neo Bank
    • 5.2.1. Global Neo Bank Market, 2017-2026 (USD Million)
  • 5.3. Challenger Bank
    • 5.3.1. Global Challenger Bank market, 2017-2026 (USD Million)
•  
• Chapter 6. Global Neo and Challenger Bank Market - Application Analysis
  • 6.1. Global Neo and Challenger Bank Market: Application overview
    • 6.1.1. Global Neo and Challenger Bank Market revenue share, by application, 2018 and 2026
  • 6.2. Personal
    • 6.2.1. Global Neo and Challenger Bank Market for Personal, 2017-2026 (USD Million)
  • 6.3. Business
    • 6.3.1. Global Neo and Challenger Bank Market for Business, 2017-2026 (USD Million)
•  
• Chapter 7. Global Neo and Challenger Bank Market - Regional Analysis
  • 7.1. Global Neo and Challenger Bank Market: Regional overview
    • 7.1.1. Global Neo and Challenger Bank Market revenue share, by region, 2018 and 2026
  • 7.2. North America
    • 7.2.1. North America Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
    • 7.2.2. North America Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.2.3. The U.S.
      • 7.2.3.1. The U.S. Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.2.3.2. The U.S. Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.2.4. Canada
      • 7.2.4.1. Canada Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.2.4.2. Canada Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
  • 7.3. Europe
    • 7.3.1. Europe Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
    • 7.3.2. Europe Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.3.3. Germany
      • 7.3.3.1. Germany Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.3.3.2. Germany Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.3.4. France
      • 7.3.4.1. France Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.3.4.2. France Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.3.5. UK
      • 7.3.5.1. UK Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.3.5.2. UK Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.3.6. Rest of Europe
      • 7.3.6.1. Rest of Europe Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.3.6.2. Rest of Europe Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
  • 7.4. Asia Pacific
    • 7.4.1. Asia Pacific Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
    • 7.4.2. Asia Pacific Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.4.3. China
      • 7.4.3.1. China Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.4.3.2. China Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.4.4. Japan
      • 7.4.4.1. Japan Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.4.4.2. Japan Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.4.5. India
      • 7.4.5.1. India Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.4.5.2. India Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.4.6. Rest of Asia Pacific
      • 7.4.6.1. Rest of Asia Pacific Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.4.6.2. Rest of Asia Pacific Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
  • 7.5. Latin America
    • 7.5.1. Latin America Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
    • 7.5.2. Latin America Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.5.3. Brazil
      • 7.5.3.1. Brazil Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.5.3.2. Brazil Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
    • 7.5.4. Rest of Latin America
      • 7.5.4.1. Rest of Latin America Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
      • 7.5.4.2. Rest of Latin America Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
  • 7.6. The Middle East and Africa
    • 7.6.1. The Middle East and Africa Neo and Challenger Bank Market revenue, by Type, 2017-2026 (USD Million)
    • 7.6.2. The Middle East and Africa Neo and Challenger Bank Market revenue, by application, 2017-2026 (USD Million)
•  
• Chapter 8. Company Profile
  • 8.1. DBS
    • 8.1.1. Overview
    • 8.1.2. Financials
    • 8.1.3. Therapy portfolio
    • 8.1.4. Business strategy
    • 8.1.5. Recent developments
  • 8.2. Simple
    • 8.2.1. Overview
    • 8.2.2. Financials
    • 8.2.3. Therapy portfolio
    • 8.2.4. Business strategy
    • 8.2.5. Recent developments
  • 8.3. Koho Financial
    • 8.3.1. Overview
    • 8.3.2. Financials
    • 8.3.3. Therapy portfolio
    • 8.3.4. Business strategy
    • 8.3.5. Recent developments
  • 8.4. Hello Bank
    • 8.4.1. Overview
    • 8.4.2. Financials
    • 8.4.3. Therapy portfolio
    • 8.4.4. Business strategy
    • 8.4.5. Recent developments
  • 8.5. Fidor Solutions
    • 8.5.1. Overview
    • 8.5.2. Financials
    • 8.5.3. Therapy portfolio
    • 8.5.4. Business strategy
    • 8.5.5. Recent developments
  • 8.6. MyBank
    • 8.6.1. Overview
    • 8.6.2. Financials
    • 8.6.3. Therapy portfolio
    • 8.6.4. Business strategy
    • 8.6.5. Recent developments
  • 8.7. Pockit Limited
    • 8.7.1. Overview
    • 8.7.2. Financials
    • 8.7.3. Therapy portfolio
    • 8.7.4. Business strategy
    • 8.7.5. Recent developments
  • 8.8. Holvi Payment Services
    • 8.8.1. Overview
    • 8.8.2. Financials
    • 8.8.3. Therapy portfolio
    • 8.8.4. Business strategy
    • 8.8.5. Recent developments
  • 8.9. Monzo Bank Limited
    • 8.9.1. Overview
    • 8.9.2. Financials
    • 8.9.3. Therapy portfolio
    • 8.9.4. Business strategy
    • 8.9.5. Recent developments
  • 8.10. Starling Bank
    • 8.10.1. Overview
    • 8.10.2. Financials
    • 8.10.3. Therapy portfolio
    • 8.10.4. Business strategy
    • 8.10.5. Recent developments
  • 8.11. N26 GmbH
    • 8.11.1. Overview
    • 8.11.2. Financials
    • 8.11.3. Therapy portfolio
    • 8.11.4. Business strategy
    • 8.11.5. Recent developments
  • 8.12. Atom Bank
    • 8.12.1. Overview
    • 8.12.2. Financials
    • 8.12.3. Therapy portfolio
    • 8.12.4. Business strategy
    • 8.12.5. Recent developments
  • 8.13. Moven
    • 8.13.1. Overview
    • 8.13.2. Financials
    • 8.13.3. Therapy portfolio
    • 8.13.4. Business strategy
    • 8.13.5. Recent developments
  • 8.14. Jibun Bank Corporation
    • 8.14.1. Overview
    • 8.14.2. Financials
    • 8.14.3. Therapy portfolio
    • 8.14.4. Business strategy
    • 8.14.5. Recent developments
  • 8.15. Timo
    • 8.15.1. Overview
    • 8.15.2. Financials
    • 8.15.3. Therapy portfolio
    • 8.15.4. Business strategy
    • 8.15.5. Recent developments
  • 8.16. Kakao Bank
    • 8.16.1. Overview
    • 8.16.2. Financials
    • 8.16.3. Therapy portfolio
    • 8.16.4. Business strategy
    • 8.16.5. Recent developments
  • 8.17. Tandem Bank Limited
    • 8.17.1. Overview
    • 8.17.2. Financials
    • 8.17.3. Therapy portfolio
    • 8.17.4. Business strategy
    • 8.17.5. Recent developments
  • 8.18. WeBank
    • 8.18.1. Overview
    • 8.18.2. Financials
    • 8.18.3. Therapy portfolio
    • 8.18.4. Business strategy
    • 8.18.5. Recent developments

Methodology

Free Analysis

The neo and challenger banks are two different terminologies. Challenger banks aim to create a new pricing model and offer data-driven banking experience to become fully-licensed banks, whereas neo banks offer a mobile-first banking experience in cooperation with a traditional bank. Some banks use novel technology to deliver banking services with a more innovative and cost-effective way. The new market players might get banking licenses under the present regulatory systems and own the client relationship or might partner with traditional banks.

Features like easy accessibility, simplicity, speed, cost-effectiveness, and improved functionality offered to the customers by neo and challenger banks are driving the neo and challenger bank market globally. The wide variety of products offered by a neo and challenger bank is almost limitless, which is also expected to fuel the neo and challenger bank market development over the forecast time period. Additionally, the growing smartphone penetration in both developed and developing countries globally is also boosting the demand for online and app-based banking. However, to convince customers to shift from traditional bank to app-based banking is a difficult task, which may hamper this global market, as a large number of customers do not find mobile solutions helpful and would rather prefer to have a face-to-face interaction or a telephonic conversation.

The global neo and challenger bank market is segmented on the basis of type and application. By type, the global neo and challenger bank market includes neo and challenger banks. The neo bank segment dominated the global market in 2018, in terms of revenue share. This segment is also expected to register a high CAGR over the forecast time period. Personal and business comprise the application segment of this global market. The business segment dominated the global market in terms of revenue in 2018.

By region, the European neo and challenger bank market is anticipated to remain the leading region over the forecast time period. This regional dominance can be attributed to the fact that most of these banks are based in UK, which is the hub for neo and challenger banks. Furthermore, UK has the largest number of SMEs in Europe (5.2 million), followed by Germany. Additionally, the U.S. and China dominate the global market with 28 million and 42 million SMEs, respectively.

Some key players operating in the global neo and challenger bank market include DBS, Simple, Koho Financial, Hello Bank, Fidor Solutions, MyBank, Pockit Limited, Holvi Payment Services, Monzo Bank Limited, Starling Bank, N26 GmbH, Atom Bank, Moven, Jibun Bank Corporation, Timo, Kakao Bank, Tandem Bank Limited, and WeBank.