Europe Neobanking Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 21.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Neobanking Market Analysis
Europe's Neobanking Market is estimated to have generated 2100 billion worth of transaction value in the current year and is poised to achieve a CAGR of 21% for the forecast period.
Neobanking is a novel banking technology that provides complete online banking solutions from opening an account to other services, without the need to go to a bank for its customers. Neobanking differs from traditional banks, as they have no physical offices & branches.
Europe holds the biggest market share in the Neobanking Market and accounts for over 30% share of the global revenue due to the establishment of multiple technology start-ups & the growing adoption of technology. The growing adoption of internet services and the increased use of smartphones are expected to accelerate market growth.
During the period of Covid-19 in 2020, Germany was having the highest user number in Digital Commerce with an average transaction value Digital commerce per user stood at a level of 2,084 US$ which stands at the second highest level after the United States. Higher and Middle-income level people contribute the most to an increase in the adoption of the Neobanking Market with restrictions made during covid for offline transactions.
Some banks are more vulnerable than others to the fallout from the COVID-19 crisis due to a weaker solvency position or individual business model characteristics. More than 2,000 small and medium-sized banks are directly supervised by national authorities. The ECB has taken measures to drastically mitigate banks funding risk, by providing new long-term central bank funding and making it easier to access this funding.
Europe Neobanking Market Trends
Increasing user penetration of Neobanking Apps
User penetration of Neobanking is 7.3% in 2022 and is expected to hit 13.3% by 2027. The European regulation (Payment Services Directive Law) has allowed fintech firms to directly connect with customers' data, which till now was a privilege only of traditional banks.
Neobanking has a grip on young customers as they are the prime target audience. Neobanking penetration is highest among 18- to 24-year-old customers. The potential growth of neobanks is driven by their low-cost model for end consumers with no or very low monthly fees on banking services such as minimum balance maintenance, deposits, and withdrawals.
Increasing internet penetration is growing demand for neobanking
Digitalization is spreading across all industries, particularly financial transactions, and has expanded to the banking industry. Mobile payments or payments made through portable electronic devices, like a cell phone, a smartwatch, or a tablet, are an alternative to using cash, checks, or physical debit and credit cards.
To stay up with the technological transformation, there has been a tremendous need for adopting and deploying AI solutions, Big Data, and Cloud Computing, among other technologies. In addition, the neobanking model provides a low-cost framework, simple accessibility, and enhanced services. Low real estate and distribution expenses, less sophisticated IT systems, and simplified operational models enhance its cost-efficiency.
Europe Neobanking Industry Overview
The report covers major players operating in the Europe Neobanking Market. In terms of market share, few of the major players currently dominate the market. There are 77 Neobank in Europe. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players including N26, Vivid, Ma French Bank, Orange Bank, Lunar, etc.
Europe Neobanking Market Leaders
-
https://n26.com/en
-
https://vivid.money/en-eu
-
https://www.mafrenchbank.fr
-
https://www.orangebank.fr
-
https://www.lunar.app
*Disclaimer: Major Players sorted in no particular order
Europe Neobanking Market News
- In March 2022, Nordic neobank Lunar raises USD 77 Million at a USD 2 Billion valuation, and launches a crypto trading platform and B2B payments for its small and medium business customers. It has now raised EUR 345 million in total, with other past investors including Seed Capital, Greyhound Capital, Socii Capital and Chr. Augustinus Fabrikker.
- In October 2021 N26 announces a landmark Series E funding round of more than $900 million was led by Third Point Ventures and Coatue Management and joined by Dragoneer Investment Group as well as existing N26 investors
Europe Neobanking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights on Technological innovation in the Neobanking Industry
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Government Regulations Landscape in the Neobanking Industry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Account Type
5.1.1 Business Account
5.1.2 Savings Account
5.2 By Services
5.2.1 Mobile Banking
5.2.2 Payments and Money Transfers
5.2.3 Savings Account
5.2.4 Loans
5.2.5 Other Sevices
5.3 By Country
5.3.1 Germany
5.3.2 France
5.3.3 United Kingdom
5.3.4 Russia
5.3.5 Italy
5.3.6 Spain
5.3.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Market Competition Overview (Major Players and M&A Deals Included)
6.2 Company Profiles
6.2.1 N26
6.2.2 Vivid
6.2.3 Ma French Bank
6.2.4 Orange Bank
6.2.5 Lunar
6.2.6 Revolut
6.2.7 Bnext
6.2.8 Holvi
6.2.9 Monzo Bank Ltd.
6.2.10 Atom Bank Plc
6.2.11 Bunq*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Europe Neobanking Industry Segmentation
The Europe Neobanking market is segmented by account type (Business account, Savings account), by services (Mobile-banking, Payments and money transfers, savings, Loans, Others), and By Country (Germany, Spain, Italy, Russia, France, United Kingdom, and Rest of Europe), various trends, opportunities, and company profiles. The report offers Market size and forecasts for the Europe Neobanking Market in value (USD Billion) for all the above segments.
| By Account Type | |
| Business Account | |
| Savings Account |
| By Services | |
| Mobile Banking | |
| Payments and Money Transfers | |
| Savings Account | |
| Loans | |
| Other Sevices |
| By Country | |
| Germany | |
| France | |
| United Kingdom | |
| Russia | |
| Italy | |
| Spain | |
| Rest of Europe |
Europe Neobanking Market Research FAQs
What is the current Europe Neobanking Market size?
The Europe Neobanking Market is projected to register a CAGR of 21% during the forecast period (2024-2029)
Who are the key players in Europe Neobanking Market?
https://n26.com/en, https://vivid.money/en-eu, https://www.mafrenchbank.fr, https://www.orangebank.fr and https://www.lunar.app are the major companies operating in the Europe Neobanking Market.
What years does this Europe Neobanking Market cover?
The report covers the Europe Neobanking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Neobanking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Neobanking Industry Report
Statistics for the 2024 Europe Neobanking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Neobanking analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
