Global neo and challenger bank market report published by Accurize Market Research forecast that the global market is expected to reach $356 Million by 2025; growing at a CAGR of 45.8% from 2017 to 2025. By geography, Asia Pacific and North America are expected to grow at a CAGR of XX% and XX%, respectively, during the forecast period.
High interest rates as compared to traditional banks to drive the growth of the market
High interest rates as compared to traditional banks and proactive banking guidelines to grant licensesfuel the demand for the global neo and challenger bank market. Moreover,enhanced accessibility to customersalso boosts the growth of the market.
The global neo and challenger bank market has been bifurcated on the basis of bank type and geography. The bank type segment includes neo bank and challenger bank. By geography the market is segmented into U.S., UK, Germany, China, and Australia.
“Neo bank accounted for the largest market share in the bank type segment”, says Accurize
By bank type segment, Neo bank held the major market share, in 2017 and is likely to continue its dominance during the forecast period 2017 – 2025. The high growth is attributed to eminence of these banks in the U.S. and the ease in acquisition of customers. In terms of growth, challenger bank is estimated to attain the fastest CAGR driven by factors such as proliferation of these banks in regions such as UK, Germany, and China with high customer base, favorable regulations and substantial investments for these start-ups.
“US dominated the global market with the highest market share over the forecast period”, says Accurize
In 2017, U.S. generated the maximum revenue accounting for the market share of 56.8% of the total market and is estimated to achieve the fastest CAGR during the forecast period 2017 – 2025. Substantial fintech investments, and large SME market in the U.S. is supporting the market growth with advanced products, solutions, and services.
Top players in the market
The key market players include Movencorp, Inc., Atom Bank Plc, Simple Finance Technology Corporation, Pockit Limited, Fidor Bank AG, Number26 GmbH, Monzo Bank Limited, MyBank (Alibaba Group), WeBank, and UBank Limited among others.