Digital Banks - Europe

  • Europe
  • In Europe, the Digital Banks market market is anticipated to witness a significant growth in Net Interest Income, with projections indicating a staggering figure of US$434.00bn by the year 2024.
  • This growth is expected to continue at a compound annual growth rate (CAGR) of 5.35% from 2024 to 2028, ultimately leading to a substantial market volume of US$534.50bn by the end of the forecast period.
  • When comparing this figure globally, it becomes evident that the largest portion of Net Interest Income will be generated in China, with an estimated value of US$969,200.0m in 2024.
  • Germany: Digital banks in Germany are gaining traction among tech-savvy millennials due to their user-friendly interfaces and competitive interest rates.

Key regions: United Kingdom, Japan, China, United States, Brazil

Region comparison

Analyst Opinion

The Digital Banks market in Europe is witnessing a significant growth trajectory driven by shifting customer preferences, evolving market trends, and unique local special circumstances.

Customer preferences:
Customers in Europe are increasingly gravitating towards digital banking solutions due to their convenience, accessibility, and efficiency. The younger demographic, in particular, is more inclined towards using digital banking services for their day-to-day financial activities. The ease of conducting transactions, 24/7 availability, and personalized offerings are key factors driving customers to opt for digital banks over traditional brick-and-mortar institutions.

Trends in the market:
In countries like Germany, the rise of neobanks offering innovative digital banking solutions is reshaping the market landscape. These digital-only banks are gaining popularity due to their user-friendly interfaces, budgeting tools, and low fees. Moreover, partnerships between traditional banks and fintech companies are becoming more prevalent, leading to the integration of advanced technologies like artificial intelligence and blockchain in digital banking services.

Local special circumstances:
In the United Kingdom, the digital banking market is highly competitive with a strong presence of challenger banks that are challenging the dominance of traditional banks. These challenger banks are leveraging technology to offer superior customer experiences, quick loan approvals, and seamless account management. Additionally, regulatory initiatives like Open Banking are fostering a more competitive environment by enabling customers to securely share their financial data with third-party providers.

Underlying macroeconomic factors:
The macroeconomic landscape in Europe, including low-interest rates and changing regulatory frameworks, is also influencing the growth of digital banks. With the European Central Bank's accommodative monetary policy, traditional banks are facing margin pressures, prompting them to explore digital transformation strategies to reduce costs and enhance operational efficiency. This macroeconomic environment is creating opportunities for digital banks to expand their market presence and gain market share from traditional players.


Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.


In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.


  • Net Interest Income
  • Analyst Opinion
  • Deposits
  • Loans
  • Credit Card Interest Income
  • Methodology
  • Key Market Indicators
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