Neobanks global market size 2021-2023

The market size of neo and challenger banks was estimated at more than 47 billion U.S. dollars in 2021, which grew to 66.8 billion U.S. dollars in 2022. Estimates projected the sector's market size to grow at an annual average rate (CAGR) of 53.4 percent until 2030, reaching a value of 2.05 trillion U.S. dollars that year. The industry is growing fast, and many of the largest neobanks worldwide more than tripled their market value between 2020 and 2021.

What is a neobank?

Neo- and challenger banks are online-only banks without any physical branches which offer their services completely via mobile apps. The market size of neobanks has increased steadily during the last few years, and many customers chose them due to convenience and ease of use. These banks provide services such as lending, investments and savings accounts, credit cards - just like any traditional bank - but completely online.

Which is the largest neobank?

Founded in 2013 and headquartered in Sao Paulo, Brazil, Nubank is the most valuable neobank worldwide, followed by U.S.-based Chime, and UK-based Revolut. These banks are not only the largest of the neobanks but are also three of the largest fintech companies worldwide in terms of market capitalization.