Europe Neobanking Market Size, Share, Trends & Analysis by Service Type (Loans, Mobile Banking, Payments and Money Transfer, Checking/Savings Account, Others), by Application (Enterprise, Personal, Others), by Account Type (Business Account, Saving Account) and Region, with Forecasts from 2025 to 2034.

May 2025 | 171 pages | ID: E0A0B16A59EDEN
Prowess Insights

Abstracts

Market Overview

The Europe Neobanking Market is set to experience robust growth from 2025 to 2034, fueled by increasing smartphone penetration, evolving consumer preferences, and rising demand for seamless, digital-first banking experiences. Neobanks—also known as digital-only banks—operate without physical branches, leveraging cutting-edge technologies to offer real-time, low-cost financial services. These fintech disruptors are reshaping the banking landscape across Europe by targeting underserved customer segments, offering personalized services, and eliminating traditional banking inefficiencies. Supported by progressive regulatory frameworks such as PSD2 and the growing trend of open banking, the market is expected to witness a significant compound annual growth rate (CAGR) of XX.XX% over the forecast period, rising from USD XX.XX billion in 2025 to USD XX.XX billion by 2034.

Market Drivers

• Digital-First Consumer Behavior: Millennial and Gen Z consumers increasingly prefer mobile-based banking solutions that offer instant transactions, intuitive interfaces, and 24/7 access.
• Favorable Regulatory Landscape: European regulations such as PSD2 and GDPR have created an ecosystem conducive to digital banking innovation, promoting transparency, customer empowerment, and competition.
• Cost Efficiency and Operational Agility: Neobanks operate with lower overheads compared to traditional banks, allowing them to offer competitive fees, higher interest rates on savings, and rapid product innovation.
• Accelerated Fintech Investments: Venture capital and private equity investments in neobanking startups are accelerating, enabling these players to scale operations, enhance features, and expand regionally.
• Open Banking and API Integration: The rise of open banking has enabled neobanks to integrate with third-party platforms, delivering enhanced customer insights, tailored financial products, and a holistic banking experience.

Definition and Scope of Neobanking

Neobanking refers to fully digital, branchless banking services that operate exclusively through mobile apps and web platforms. These banks offer a wide array of services, including digital payments, money transfers, personal finance management, loans, and savings/checking accounts. The Europe Neobanking Market is segmented by service type (loans, payments, mobile banking, etc.), application (enterprise and personal use), and account type (business and saving accounts). Key growth areas include instant account opening, budget tracking, cryptocurrency integration, and cross-border remittances.

Market Restraints

• Trust and Security Concerns: Despite technological advancements, concerns over cybersecurity, data breaches, and fraud continue to limit user trust, particularly among older demographics.
• Limited Financial Product Portfolio: Many neobanks offer a narrow range of services compared to traditional banks, impacting their ability to fully meet customer banking needs.
• Customer Retention Challenges: With low switching costs, neobanks face intense competition and may struggle to build long-term customer loyalty.
• Regulatory and Compliance Risks: Rapid innovation and cross-border operations may expose neobanks to complex compliance requirements and regulatory scrutiny.

Opportunities

• Expansion into Underserved Markets: Neobanks are well-positioned to serve niche segments such as freelancers, small businesses, gig economy workers, and unbanked populations.
• AI-Powered Personalization: Leveraging AI and machine learning, neobanks can offer hyper-personalized banking experiences, predictive financial insights, and automated savings plans.
• Sustainable and ESG-Friendly Banking: Emerging demand for ethical and eco-conscious financial services presents an opportunity for neobanks to align offerings with ESG principles.
• Cross-Border Payments & Multi-Currency Support: The increase in international transactions and remote work is driving demand for global banking solutions with low-cost currency conversion and international money transfer features.

Market Segmentation Analysis

• By Service Type
• Loans
• Mobile Banking
• Payments and Money Transfer
• Checking/Savings Account
• Others
• By Application
• Enterprise
• Personal
• Others
• By Account Type
• Business Account
• Saving Account

Regional Analysis

• United Kingdom: A pioneer in fintech innovation, the UK continues to lead Europe’s neobanking market with a high concentration of digital banking users, supportive regulatory bodies, and thriving startup culture.
• Germany: Home to prominent neobank players and a large tech-savvy population, Germany’s market growth is driven by demand for real-time payments and contactless banking solutions.
• France: Strong regulatory focus on digital sovereignty and cybersecurity is encouraging adoption of secure, AI-powered neobanking platforms.
• Nordic Countries: High digital literacy, early fintech adoption, and preference for cashless transactions are accelerating neobank usage across Sweden, Norway, Finland, and Denmark.
• Benelux and Eastern Europe: These regions are emerging as growth hotspots due to increasing mobile banking usage, improving financial literacy, and regulatory encouragement for fintech entrants.

Neobanks are poised to redefine the future of banking in Europe, offering unmatched convenience, financial inclusivity, and innovative services. As customer expectations evolve and technology matures, the competition among digital banks will intensify, compelling players to focus on value-added offerings, customer experience, and strategic differentiation.

Competitive Landscape

The Europe Neobanking Market is characterized by the presence of pioneering digital banks, agile fintech startups, and partnerships between legacy banks and tech firms. Key market participants include:

Revolut Ltd.

N26 GmbH

Monzo Bank Ltd.

Starling Bank Limited

Bunq B.V.

Atom Bank Plc

Wise (formerly TransferWise)

Chime (expanding to Europe)

Holvi

Monese Ltd.

Contents

1. INTRODUCTION

1.1. Definition of Neobanking
1.2. Scope of the Report
1.3. Research Methodology

2. EXECUTIVE SUMMARY

2.1. Key Findings
2.2. Market Snapshot
2.3. Key Trends

3. MARKET DYNAMICS

3.1. Market Drivers
  3.1.1. Growing Digital Adoption in Banking
  3.1.2. Increasing Demand for Convenient and Instant Financial Services
  3.1.3. Regulatory Support for Digital Banking in Europe
  3.1.4. Rising Smartphone Penetration and Internet Accessibility
  3.1.5. Other Drivers
3.2. Market Restraints
  3.2.1. Cybersecurity and Data Privacy Concerns
  3.2.2. Intense Competition from Traditional Banks and Fintechs
  3.2.3. Regulatory and Compliance Challenges
  3.2.4. Other Restraints
3.3. Market Opportunities
  3.3.1. Expansion into Underbanked and Unbanked Populations
  3.3.2. Integration of Advanced Technologies like AI and Blockchain
  3.3.3. Strategic Partnerships with Fintechs and Telecom Providers
  3.3.4. Growing Demand for Personalized Financial Services
  3.3.5. Other Opportunities

4. EUROPE NEOBANKING MARKET ANALYSIS

4.1. Market Size and Forecast (2025–2034)
4.2. Market Share Analysis by:
  4.2.1. Service Type
    4.2.1.1. Loans
    4.2.1.2. Mobile Banking
    4.2.1.3. Payments and Money Transfer
    4.2.1.4. Checking/Savings Account
    4.2.1.5. Others
  4.2.2. Application
    4.2.2.1. Enterprise
    4.2.2.2. Personal
    4.2.2.3. Others
  4.2.3. Account Type
    4.2.3.1. Business Account
    4.2.3.2. Saving Account
4.3. Value Chain Analysis
4.4. SWOT Analysis
4.5. Porter’s Five Forces Analysis

5. REGIONAL MARKET ANALYSIS

5.1. Germany
  5.1.1. Market Overview
  5.1.2. Market Size and Forecast
  5.1.3. Key Trends
  5.1.4. Competitive Landscape
5.2. United Kingdom
  5.2.1. Market Overview
  5.2.2. Market Size and Forecast
  5.2.3. Key Trends
  5.2.4. Competitive Landscape
5.3. France
  5.3.1. Market Overview
  5.3.2. Market Size and Forecast
  5.3.3. Key Trends
  5.3.4. Competitive Landscape
5.4. Italy
  5.4.1. Market Overview
  5.4.2. Market Size and Forecast
  5.4.3. Key Trends
  5.4.4. Competitive Landscape
5.5. Spain
  5.5.1. Market Overview
  5.5.2. Market Size and Forecast
  5.5.3. Key Trends
  5.5.4. Competitive Landscape
5.6. Rest of Europe
  5.6.1. Market Overview
  5.6.2. Market Size and Forecast
  5.6.3. Key Trends
  5.6.4. Competitive Landscape

6. COMPETITIVE LANDSCAPE

6.1. Market Share Analysis of Key Players
6.2. Company Profiles of Key Players
  6.2.1. Revolut Ltd.
  6.2.2. N26 GmbH
  6.2.3. Monzo Bank Ltd.
  6.2.4. Starling Bank Limited
  6.2.5. Bunq B.V.
  6.2.6. Atom Bank Plc
  6.2.7. Wise (formerly TransferWise)
  6.2.8. Chime (expanding to Europe)
  6.2.9. Holvi
  6.2.10. Monese Ltd.
6.3. Recent Developments and Innovations
6.4. Strategic Initiatives

7. FUTURE OUTLOOK AND MARKET FORECAST

7.1. Market Growth Prospects
7.2. Emerging Trends in Neobanking
7.3. Investment Opportunities
7.4. Strategic Recommendations

8. KEY INSIGHTS AND REITERATION OF MAIN FINDINGS

9. FUTURE PROSPECTS FOR THE EUROPE NEOBANKING MARKET

List Of Tables

LIST OF TABLES

Table 1: Europe Neobanking Market Size, 2025–2034 (USD Billion)
Table 2: Europe Neobanking Market, By Service Type, 2025–2034 (USD Billion)
Table 3: Europe Neobanking Market, By Loans, 2025–2034 (USD Billion)
Table 4: Europe Neobanking Market, By Mobile Banking, 2025–2034 (USD Billion)
Table 5: Europe Neobanking Market, By Payments and Money Transfer, 2025–2034 (USD Billion)
Table 6: Europe Neobanking Market, By Checking/Savings Account, 2025–2034 (USD Billion)
Table 7: Europe Neobanking Market, By Others Service Type, 2025–2034 (USD Billion)
Table 8: Europe Neobanking Market, By Application, 2025–2034 (USD Billion)
Table 9: Europe Neobanking Market, By Enterprise Application, 2025–2034 (USD Billion)
Table 10: Europe Neobanking Market, By Personal Application, 2025–2034 (USD Billion)
Table 11: Europe Neobanking Market, By Others Application, 2025–2034 (USD Billion)
Table 12: Europe Neobanking Market, By Account Type, 2025–2034 (USD Billion)
Table 13: Europe Neobanking Market, By Business Account, 2025–2034 (USD Billion)
Table 14: Europe Neobanking Market, By Saving Account, 2025–2034 (USD Billion)
Table 15: Europe Neobanking Market, By Region, 2025–2034 (USD Billion)
Table 16: Germany Neobanking Market, By Service Type, 2025–2034 (USD Billion)
Table 17: Germany Neobanking Market, By Application, 2025–2034 (USD Billion)
Table 18: Germany Neobanking Market, By Account Type, 2025–2034 (USD Billion)
Table 19: U.K. Neobanking Market, By Service Type, 2025–2034 (USD Billion)
Table 20: U.K. Neobanking Market, By Application, 2025–2034 (USD Billion)
Table 21: U.K. Neobanking Market, By Account Type, 2025–2034 (USD Billion)
Table 22: France Neobanking Market, By Service Type, 2025–2034 (USD Billion)
Table 23: France Neobanking Market, By Application, 2025–2034 (USD Billion)
Table 24: France Neobanking Market, By Account Type, 2025–2034 (USD Billion)
Table 25: Italy Neobanking Market, By Service Type, 2025–2034 (USD Billion)
Table 26: Italy Neobanking Market, By Application, 2025–2034 (USD Billion)
Table 27: Italy Neobanking Market, By Account Type, 2025–2034 (USD Billion)
Table 28: Spain Neobanking Market, By Service Type, 2025–2034 (USD Billion)
Table 29: Spain Neobanking Market, By Application, 2025–2034 (USD Billion)
Table 30: Spain Neobanking Market, By Account Type, 2025–2034 (USD Billion)
Table 31: Rest of Europe Neobanking Market, By Service Type, 2025–2034 (USD Billion)
Table 32: Rest of Europe Neobanking Market, By Application, 2025–2034 (USD Billion)
Table 33: Rest of Europe Neobanking Market, By Account Type, 2025–2034 (USD Billion)
Table 34: Revolut Ltd.: Company Snapshot
Table 35: Revolut Ltd.: Product Portfolio
Table 36: Revolut Ltd.: Operating Segments
Table 37: N26 GmbH: Company Snapshot
Table 38: N26 GmbH: Product Portfolio
Table 39: N26 GmbH: Operating Segments
Table 40: Monzo Bank Ltd.: Company Snapshot
Table 41: Monzo Bank Ltd.: Product Portfolio
Table 42: Monzo Bank Ltd.: Operating Segments

List Of Figures

LIST OF FIGURES

Figure 1: Europe Neobanking Market: Market Segmentation
Figure 2: Europe Neobanking Market: Research Methodology
Figure 3: Top-Down Approach
Figure 4: Bottom-Up Approach
Figure 5: Data Triangulation and Validation
Figure 6: Europe Neobanking Market: Drivers, Restraints, Opportunities, and Challenges
Figure 7: Europe Neobanking Market: Porter’s Five Forces Analysis
Figure 8: Europe Neobanking Market: Value Chain Analysis
Figure 9: Europe Neobanking Market Share Analysis, By Service Type, 2025–2034
Figure 10: Europe Neobanking Market Share Analysis, By Application, 2025–2034
Figure 11: Europe Neobanking Market Share Analysis, By Account Type, 2025–2034
Figure 12: Germany Neobanking Market Share, By Service Type, 2025–2034
Figure 13: Germany Neobanking Market Share, By Application, 2025–2034
Figure 14: Germany Neobanking Market Share, By Account Type, 2025–2034
Figure 15: U.K. Neobanking Market Share, By Service Type, 2025–2034
Figure 16: U.K. Neobanking Market Share, By Application, 2025–2034
Figure 17: U.K. Neobanking Market Share, By Account Type, 2025–2034
Figure 18: France Neobanking Market Share, By Service Type, 2025–2034
Figure 19: France Neobanking Market Share, By Application, 2025–2034
Figure 20: France Neobanking Market Share, By Account Type, 2025–2034
Figure 21: Italy Neobanking Market Share, By Service Type, 2025–2034
Figure 22: Italy Neobanking Market Share, By Application, 2025–2034
Figure 23: Italy Neobanking Market Share, By Account Type, 2025–2034
Figure 24: Spain Neobanking Market Share, By Service Type, 2025–2034
Figure 25: Spain Neobanking Market Share, By Application, 2025–2034
Figure 26: Spain Neobanking Market Share, By Account Type, 2025–2034
Figure 27: Rest of Europe Neobanking Market Share, By Service Type, 2025–2034
Figure 28: Rest of Europe Neobanking Market Share, By Application, 2025–2034
Figure 29: Rest of Europe Neobanking Market Share, By Account Type, 2025–2034
Figure 30: Europe Neobanking Market: Competitive Benchmarking
Figure 31: Europe Neobanking Market: Vendor Share Analysis, 2025
Figure 32: Europe Neobanking Market: Regulatory Environment and Compliance Standards
Figure 33: Europe Neobanking Market: Technology Integration (AI, Chatbots, APIs)
Figure 34: Europe Neobanking Market: Impact of Open Banking and PSD2 Regulations
Figure 35: Europe Neobanking Market: Consumer Behavior and Digital Adoption Trends
Figure 36: Europe Neobanking Market: Partnerships, Mergers, and Strategic Developments
Figure 37: Europe Neobanking Market: Market Penetration and Customer Acquisition Strategies
Figure 38: Europe Neobanking Market: Revenue Models and Profitability Metrics
Figure 39: Europe Neobanking Market: Risk Factors and Security Concerns
Figure 40: Europe Neobanking Market: Regional Spending and Investment Outlook
Figure 41: Europe Neobanking Market: Future Outlook and Strategic Insights
Figure 42: Europe Neobanking Market: Forecasting Methodology