Germany Neobanking Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Germany Neobanking Market Analysis
Germany's Neobanking Market is estimated to have generated USD 62 billion of transactions in 2022 and is estimated to register a CAGR of 8% for the forecast period. In the European region, German fintech is the second-largest market. Neobanking transaction value in Germany reached USD 50 billion in 2021, user penetration in Neobanking is 2.5%, and it witnessed 2 million users in 2021.
The growth of fintech in Germany didn't slow down due to the COVID-19 pandemic but boosted it. Investors pumped almost 3 times as much money into fintech based in Germany compared to 2020. The increasing adoption of mobile banking platforms and fully digital banking experience contributed significantly to the market growth. The German fintech sector broke the 900 mark for the first time with 946 start-ups. Investment start-ups showed the strongest growth of all top fintech categories.
N26 is the first Neobank founded in Germany, and it is one of the largest European fintech companies. It leverages AI to organize a user's expenses by category and make it easier to track spending. N26 takes an average of 170,000 new customers a month.
Germany Neobanking Market Trends
Rising Investment for Fintech in Germany Driving future of the Market
The German fintech market grew by approximately 120% over the last 7 years. Germany currently has around 950 active start-ups in the fintech sector. 28% are in Berlin, while 11% are based in Frankfurt, despite Frankfurt being the country's financial hub.
Fintech has made up 10% of all new start-ups in Germany. After information and communication technology, the sector has become the second-greatest start-up activity in the country's start-up ecosystem. The innovative technologies and disruptive business models are removing market entry and expansion barriers, with German fintechs looking to expand beyond Germany and international Fintechs also entering the German market. Almost three-quarters of foreign fintechs are active in banking, lending, payments, and enabling processes and technology segments.
Growing Penetration of Smartphones and Increasing Digitalization Boosted the Neobanking Market
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.
Total transaction value in the Digital Payments segment crossed one by a third in 2021 and grew at a significant rate; the country had the highest number of digital commerce users within Europe in 2021. As mobile payment solutions become increasingly widespread and integrated within social media platforms, Germany is expected to see a specifically high increase in mobile POS payments.
Germany Neobanking Industry Overview
The report covers major players operating in the German Neobanking Market. In terms of market share, few of the major players currently dominate the market. 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, Fidor Bank, Bunq, Insha, and Soldo.
Germany Neobanking Market Leaders
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N26
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Fidor Bank
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Bunq
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Insha
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Soldo
*Disclaimer: Major Players sorted in no particular order
Germany Neobanking Market News
- February 2023: The German neobank N26, also active in Switzerland, was looking for an acquisition allowing its customers to trade stocks and index funds.
- January 2023: The German neobank Rukky announced it has filed for bankruptcy after less than three years in operation. The decision to file for insolvency came after Ruuky failed to secure fresh funding from either new or existing investors.
Germany Neobanking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights on Various Regulatory Trends Shaping the Market
4.5 Insights on impact of technology in the Market
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Account
5.1.1 Business account
5.1.2 Savings account
5.2 By Service
5.2.1 Mobile Banking
5.2.2 Payments & Money transfer
5.2.3 Savings account
5.2.4 Loans
5.3 By Application
5.3.1 Enterprise
5.3.2 Personal
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 N26
6.2.2 Insha
6.2.3 Fidor Bank
6.2.4 Penta
6.2.5 Soldo
6.2.6 Bunq
6.2.7 Vivid
6.2.8 Nuri
6.2.9 Curve
6.2.10 Wise*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Germany Neobanking Industry Segmentation
Neobanks is a bank that operates online without having a physical presence; it is part of fintech that provides digital and mobile-first services like payments, debit cards, money transfers, lending, and more. A complete background analysis of the market, which includes emerging trends, significant changes in market dynamics, and a market overview, is covered in the report. The report also features a qualitative and quantitative assessment by analyzing data gathered from industry analysts. Germany Neobanking Market is segmented by account type (Business Account and Savings Account), by service (Mobile Banking, Payments & money transfer, Savings account, Loans, and others), and by application (Enterprise, Personal, and others). The report offers market size and forecasts for Germany Neobanking Market in value (USD Million) for all the above segments.
| By Account | |
| Business account | |
| Savings account |
| By Service | |
| Mobile Banking | |
| Payments & Money transfer | |
| Savings account | |
| Loans |
| By Application | |
| Enterprise | |
| Personal |
Germany Neobanking Market Research FAQs
What is the current Germany Neobanking Market size?
The Germany Neobanking Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in Germany Neobanking Market?
N26, Fidor Bank, Bunq, Insha and Soldo are the major companies operating in the Germany Neobanking Market.
What years does this Germany Neobanking Market cover?
The report covers the Germany Neobanking Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Neobanking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Neobanks in Germany Industry Report
Statistics for the 2024 Neobanks in Germany market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Neobanks in Germany analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
