Global Neo and Challenger Bank Market Size Study, By Business Model (Digital-Only Banks, Hybrid Banks), By Target Customer (Retail Consumers, SMEs, Freelancers and Gig Economy Workers), By Services Offered (Basic Banking Services, Mobile Payments, Budgeting Tools, Investment, Lending), and Regional Forecasts 2022-2032
The Global Neo and Challenger Bank Market, valued at USD 118.01 billion in 2023, is poised for significant growth with a CAGR of 47.17% over the forecast period of 2024 to 2032. This dynamic segment of the financial services industry is revolutionizing traditional banking models by leveraging advanced digital platforms and technologies to offer seamless, customer-centric financial services. Neo and Challenger banks operate primarily through mobile apps and online platforms, eschewing physical branches to provide enhanced user experiences, greater transparency, and competitive pricing for services such as account management, mobile payments, lending, and investment solutions.
Drivers of the Neo and Challenger Bank market include the increasing demand for digital banking services, driven by tech-savvy consumers who prefer convenience and flexibility over traditional banking methods. The lower operating costs associated with digital-only models enable Neo and Challenger banks to offer competitive pricing on services. Additionally, rising collaborations with fintech firms and the focus on financial inclusion are accelerating market growth.
However, restraints such as regulatory compliance challenges, limited brand awareness, and dependency on technology infrastructure pose obstacles to market expansion. Nonetheless, the integration of emerging technologies like AI and IoT, coupled with a growing emphasis on financial inclusion and sustainability, presents significant opportunities for growth.
North America is anticipated to dominate the market due to the presence of a well-established digital infrastructure and a tech-savvy population. The region is home to several leading players like Chime and Varo Money, who are innovating in the space to offer customized digital banking experiences. Europe, with notable players such as Revolut and N26, is also expected to witness significant growth, driven by regulatory initiatives like open banking and consumer demand for seamless digital experiences.
Key market players include:
Revolut
N26
Chime
Monzo
Varo Money
Atom Bank
Tandem Bank
Starling Bank
MyBank
Nubank
The detailed segments and sub-segments of the market are explained below:
By Business Model:
• Digital-Only Banks
• Hybrid Banks
By Target Customer:
• Retail Consumers
• Small and Medium-Sized Enterprises (SMEs)
• Freelancers and Gig Economy Workers
By Services Offered:
• Basic Banking Services
• Mobile Payments and Transfers
• Budgeting and Financial Management Tools
• Investment and Wealth Management
• Lending and Credit
By Region:
• North America
• U.S.
• Canada
• Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific
• Latin America
• Brazil
• Mexico
• Rest of Latin America
• Middle East & Africa
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa
Years considered for the study are as follows:
• Historical year: 2022
• Base year: 2023
• Forecast period: 2024 to 2032
Key Takeaways:
• Market estimates and forecasts for 10 years (2022-2032)
• Regional-level analysis for each market segment
• Detailed geographical landscape analysis
• Competitive landscape with key player information
• Analysis of business strategies and future market approaches
Drivers of the Neo and Challenger Bank market include the increasing demand for digital banking services, driven by tech-savvy consumers who prefer convenience and flexibility over traditional banking methods. The lower operating costs associated with digital-only models enable Neo and Challenger banks to offer competitive pricing on services. Additionally, rising collaborations with fintech firms and the focus on financial inclusion are accelerating market growth.
However, restraints such as regulatory compliance challenges, limited brand awareness, and dependency on technology infrastructure pose obstacles to market expansion. Nonetheless, the integration of emerging technologies like AI and IoT, coupled with a growing emphasis on financial inclusion and sustainability, presents significant opportunities for growth.
North America is anticipated to dominate the market due to the presence of a well-established digital infrastructure and a tech-savvy population. The region is home to several leading players like Chime and Varo Money, who are innovating in the space to offer customized digital banking experiences. Europe, with notable players such as Revolut and N26, is also expected to witness significant growth, driven by regulatory initiatives like open banking and consumer demand for seamless digital experiences.
Key market players include:
Revolut
N26
Chime
Monzo
Varo Money
Atom Bank
Tandem Bank
Starling Bank
MyBank
Nubank
The detailed segments and sub-segments of the market are explained below:
By Business Model:
• Digital-Only Banks
• Hybrid Banks
By Target Customer:
• Retail Consumers
• Small and Medium-Sized Enterprises (SMEs)
• Freelancers and Gig Economy Workers
By Services Offered:
• Basic Banking Services
• Mobile Payments and Transfers
• Budgeting and Financial Management Tools
• Investment and Wealth Management
• Lending and Credit
By Region:
• North America
• U.S.
• Canada
• Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific
• Latin America
• Brazil
• Mexico
• Rest of Latin America
• Middle East & Africa
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa
Years considered for the study are as follows:
• Historical year: 2022
• Base year: 2023
• Forecast period: 2024 to 2032
Key Takeaways:
• Market estimates and forecasts for 10 years (2022-2032)
• Regional-level analysis for each market segment
• Detailed geographical landscape analysis
• Competitive landscape with key player information
• Analysis of business strategies and future market approaches
CHAPTER 1: GLOBAL NEO AND CHALLENGER BANK MARKET EXECUTIVE SUMMARY
1.1. Global Neo and Challenger Bank Market Size & Forecast (2022-2032)
1.2. Regional Summary
1.3. Segmental Summary
1.3.1. By Business Model
1.3.2. By Target Customer
1.3.3. By Services Offered
1.4. Key Trends
1.5. Recession Impact
1.6. Analyst Recommendations & Conclusion
CHAPTER 2: GLOBAL NEO AND CHALLENGER BANK MARKET DEFINITION AND RESEARCH ASSUMPTIONS
2.1. Research Objective
2.2. Market Definition
2.3. Research Assumptions
2.3.1. Inclusion & Exclusion
2.3.2. Limitations
2.3.3. Supply-Side Analysis
2.3.3.1. Regulatory Environment
2.3.3.2. Technological Advancements
2.3.4. Demand-Side Analysis
2.3.4.1. Consumer Awareness & Acceptance
2.3.4.2. Changing Consumer Behavior
2.4. Estimation Methodology
2.5. Years Considered for the Study
2.6. Currency Conversion Rates
CHAPTER 3: GLOBAL NEO AND CHALLENGER BANK MARKET DYNAMICS
3.1. Market Drivers
3.1.1. Growing Demand for Digital Banking Solutions
3.1.2. Emphasis on Customer-Centricity
3.1.3. Lower Operating Costs and Competitive Pricing
3.1.4. Innovative Financial Products and Services
3.2. Market Challenges
3.2.1. Regulatory Compliance and Licensing Issues
3.2.2. Limited Brand Awareness
3.2.3. Technology Dependency and Cybersecurity Concerns
3.2.4. Capital and Funding Constraints
3.3. Market Opportunities
3.3.1. Expansion into Emerging Markets
3.3.2. Growing Focus on Financial Inclusion
3.3.3. Collaborations with Fintech Companies
CHAPTER 4: GLOBAL NEO AND CHALLENGER BANK MARKET INDUSTRY ANALYSIS
4.1. Porter’s 5 Forces Model
4.1.1. Bargaining Power of Suppliers
4.1.2. Bargaining Power of Buyers
4.1.3. Threat of New Entrants
4.1.4. Threat of Substitutes
4.1.5. Competitive Rivalry
4.1.6. Futuristic Approach to Porter’s 5 Force Model
4.2. PESTEL Analysis
4.2.1. Political
4.2.2. Economic
4.2.3. Social
4.2.4. Technological
4.2.5. Environmental
4.2.6. Legal
4.3. Top Investment Opportunities
4.4. Top Winning Strategies
4.5. Disruptive Trends
4.6. Analyst Recommendations & Conclusion
CHAPTER 5: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY BUSINESS MODEL (2022-2032)
5.1. Segment Dashboard
5.2. Global Neo and Challenger Bank Market: Business Model Revenue Trend Analysis, 2022 & 2032 (USD Billion)
5.2.1. Digital-Only Banks
5.2.2. Hybrid Banks
CHAPTER 6: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY TARGET CUSTOMER (2022-2032)
6.1. Segment Dashboard
6.2. Global Neo and Challenger Bank Market: Target Customer Revenue Trend Analysis, 2022 & 2032 (USD Billion)
6.2.1. Retail Consumers
6.2.2. Small and Medium-Sized Enterprises (SMEs)
6.2.3. Freelancers and Gig Economy Workers
CHAPTER 7: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY SERVICES OFFERED (2022-2032)
7.1. Segment Dashboard
7.2. Global Neo and Challenger Bank Market: Services Offered Revenue Trend Analysis, 2022 & 2032 (USD Billion)
7.2.1. Basic Banking Services
7.2.2. Mobile Payments and Transfers
7.2.3. Budgeting and Financial Management Tools
7.2.4. Investment and Wealth Management
7.2.5. Lending and Credit
CHAPTER 8: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY REGION (2022-2032)
8.1. North America Neo and Challenger Bank Market
8.1.1. U.S. Neo and Challenger Bank Market
8.1.1.1. Business Model breakdown size & forecasts, 2022-2032
8.1.1.2. Target Customer breakdown size & forecasts, 2022-2032
8.1.2. Canada Neo and Challenger Bank Market
8.2. Europe Neo and Challenger Bank Market
8.2.1. UK Neo and Challenger Bank Market
8.2.2. Germany Neo and Challenger Bank Market
8.2.3. France Neo and Challenger Bank Market
8.2.4. Spain Neo and Challenger Bank Market
8.2.5. Italy Neo and Challenger Bank Market
8.2.6. Rest of Europe Neo and Challenger Bank Market
8.3. Asia-Pacific Neo and Challenger Bank Market
8.3.1. China Neo and Challenger Bank Market
8.3.2. India Neo and Challenger Bank Market
8.3.3. Japan Neo and Challenger Bank Market
8.3.4. Australia Neo and Challenger Bank Market
8.3.5. South Korea Neo and Challenger Bank Market
8.3.6. Rest of Asia-Pacific Neo and Challenger Bank Market
8.4. Latin America Neo and Challenger Bank Market
8.4.1. Brazil Neo and Challenger Bank Market
8.4.2. Mexico Neo and Challenger Bank Market
8.4.3. Rest of Latin America Neo and Challenger Bank Market
8.5. Middle East & Africa Neo and Challenger Bank Market
8.5.1. Saudi Arabia Neo and Challenger Bank Market
8.5.2. South Africa Neo and Challenger Bank Market
8.5.3. Rest of Middle East & Africa Neo and Challenger Bank Market
CHAPTER 9: COMPETITIVE INTELLIGENCE
9.1. Key Company SWOT Analysis
9.1.1. Company
9.1.2. Company
9.1.3. Company
9.2. Top Market Strategies
9.3. Company Profiles
9.3.1. Revolut
9.3.1.1. Key Information
9.3.1.2. Overview
9.3.1.3. Financial (Subject to Data Availability)
9.3.1.4. Product Summary
9.3.1.5. Market Strategies
9.3.2. N26
9.3.3. Chime
9.3.4. Monzo
9.3.5. Varo Money
9.3.6. Atom Bank
9.3.7. Tandem Bank
9.3.8. Starling Bank
9.3.9. MyBank
9.3.10. Nubank
CHAPTER 10: RESEARCH PROCESS
10.1. Research Process
10.1.1. Data Mining
10.1.2. Analysis
10.1.3. Market Estimation
10.1.4. Validation
10.1.5. Publishing
10.2. Research Attributes
1.1. Global Neo and Challenger Bank Market Size & Forecast (2022-2032)
1.2. Regional Summary
1.3. Segmental Summary
1.3.1. By Business Model
1.3.2. By Target Customer
1.3.3. By Services Offered
1.4. Key Trends
1.5. Recession Impact
1.6. Analyst Recommendations & Conclusion
CHAPTER 2: GLOBAL NEO AND CHALLENGER BANK MARKET DEFINITION AND RESEARCH ASSUMPTIONS
2.1. Research Objective
2.2. Market Definition
2.3. Research Assumptions
2.3.1. Inclusion & Exclusion
2.3.2. Limitations
2.3.3. Supply-Side Analysis
2.3.3.1. Regulatory Environment
2.3.3.2. Technological Advancements
2.3.4. Demand-Side Analysis
2.3.4.1. Consumer Awareness & Acceptance
2.3.4.2. Changing Consumer Behavior
2.4. Estimation Methodology
2.5. Years Considered for the Study
2.6. Currency Conversion Rates
CHAPTER 3: GLOBAL NEO AND CHALLENGER BANK MARKET DYNAMICS
3.1. Market Drivers
3.1.1. Growing Demand for Digital Banking Solutions
3.1.2. Emphasis on Customer-Centricity
3.1.3. Lower Operating Costs and Competitive Pricing
3.1.4. Innovative Financial Products and Services
3.2. Market Challenges
3.2.1. Regulatory Compliance and Licensing Issues
3.2.2. Limited Brand Awareness
3.2.3. Technology Dependency and Cybersecurity Concerns
3.2.4. Capital and Funding Constraints
3.3. Market Opportunities
3.3.1. Expansion into Emerging Markets
3.3.2. Growing Focus on Financial Inclusion
3.3.3. Collaborations with Fintech Companies
CHAPTER 4: GLOBAL NEO AND CHALLENGER BANK MARKET INDUSTRY ANALYSIS
4.1. Porter’s 5 Forces Model
4.1.1. Bargaining Power of Suppliers
4.1.2. Bargaining Power of Buyers
4.1.3. Threat of New Entrants
4.1.4. Threat of Substitutes
4.1.5. Competitive Rivalry
4.1.6. Futuristic Approach to Porter’s 5 Force Model
4.2. PESTEL Analysis
4.2.1. Political
4.2.2. Economic
4.2.3. Social
4.2.4. Technological
4.2.5. Environmental
4.2.6. Legal
4.3. Top Investment Opportunities
4.4. Top Winning Strategies
4.5. Disruptive Trends
4.6. Analyst Recommendations & Conclusion
CHAPTER 5: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY BUSINESS MODEL (2022-2032)
5.1. Segment Dashboard
5.2. Global Neo and Challenger Bank Market: Business Model Revenue Trend Analysis, 2022 & 2032 (USD Billion)
5.2.1. Digital-Only Banks
5.2.2. Hybrid Banks
CHAPTER 6: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY TARGET CUSTOMER (2022-2032)
6.1. Segment Dashboard
6.2. Global Neo and Challenger Bank Market: Target Customer Revenue Trend Analysis, 2022 & 2032 (USD Billion)
6.2.1. Retail Consumers
6.2.2. Small and Medium-Sized Enterprises (SMEs)
6.2.3. Freelancers and Gig Economy Workers
CHAPTER 7: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY SERVICES OFFERED (2022-2032)
7.1. Segment Dashboard
7.2. Global Neo and Challenger Bank Market: Services Offered Revenue Trend Analysis, 2022 & 2032 (USD Billion)
7.2.1. Basic Banking Services
7.2.2. Mobile Payments and Transfers
7.2.3. Budgeting and Financial Management Tools
7.2.4. Investment and Wealth Management
7.2.5. Lending and Credit
CHAPTER 8: GLOBAL NEO AND CHALLENGER BANK MARKET SIZE & FORECASTS BY REGION (2022-2032)
8.1. North America Neo and Challenger Bank Market
8.1.1. U.S. Neo and Challenger Bank Market
8.1.1.1. Business Model breakdown size & forecasts, 2022-2032
8.1.1.2. Target Customer breakdown size & forecasts, 2022-2032
8.1.2. Canada Neo and Challenger Bank Market
8.2. Europe Neo and Challenger Bank Market
8.2.1. UK Neo and Challenger Bank Market
8.2.2. Germany Neo and Challenger Bank Market
8.2.3. France Neo and Challenger Bank Market
8.2.4. Spain Neo and Challenger Bank Market
8.2.5. Italy Neo and Challenger Bank Market
8.2.6. Rest of Europe Neo and Challenger Bank Market
8.3. Asia-Pacific Neo and Challenger Bank Market
8.3.1. China Neo and Challenger Bank Market
8.3.2. India Neo and Challenger Bank Market
8.3.3. Japan Neo and Challenger Bank Market
8.3.4. Australia Neo and Challenger Bank Market
8.3.5. South Korea Neo and Challenger Bank Market
8.3.6. Rest of Asia-Pacific Neo and Challenger Bank Market
8.4. Latin America Neo and Challenger Bank Market
8.4.1. Brazil Neo and Challenger Bank Market
8.4.2. Mexico Neo and Challenger Bank Market
8.4.3. Rest of Latin America Neo and Challenger Bank Market
8.5. Middle East & Africa Neo and Challenger Bank Market
8.5.1. Saudi Arabia Neo and Challenger Bank Market
8.5.2. South Africa Neo and Challenger Bank Market
8.5.3. Rest of Middle East & Africa Neo and Challenger Bank Market
CHAPTER 9: COMPETITIVE INTELLIGENCE
9.1. Key Company SWOT Analysis
9.1.1. Company
9.1.2. Company
9.1.3. Company
9.2. Top Market Strategies
9.3. Company Profiles
9.3.1. Revolut
9.3.1.1. Key Information
9.3.1.2. Overview
9.3.1.3. Financial (Subject to Data Availability)
9.3.1.4. Product Summary
9.3.1.5. Market Strategies
9.3.2. N26
9.3.3. Chime
9.3.4. Monzo
9.3.5. Varo Money
9.3.6. Atom Bank
9.3.7. Tandem Bank
9.3.8. Starling Bank
9.3.9. MyBank
9.3.10. Nubank
CHAPTER 10: RESEARCH PROCESS
10.1. Research Process
10.1.1. Data Mining
10.1.2. Analysis
10.1.3. Market Estimation
10.1.4. Validation
10.1.5. Publishing
10.2. Research Attributes
LIST OF TABLES
TABLE 1. Global Neo and Challenger Bank Market, Report Scope
TABLE 2. Global Neo and Challenger Bank Market Estimates & Forecasts by Region 2022-2032 (USD Billion)
TABLE 3. Global Neo and Challenger Bank Market Estimates & Forecasts by Business Model 2022-2032 (USD Billion)
TABLE 4. Global Neo and Challenger Bank Market Estimates & Forecasts by Target Customer 2022-2032 (USD Billion)
TABLE 5. Global Neo and Challenger Bank Market Estimates & Forecasts by Services Offered 2022-2032 (USD Billion)
…
This list is not complete, the final report contains more than 100 tables. The list may be updated in the final deliverable.
TABLE 1. Global Neo and Challenger Bank Market, Report Scope
TABLE 2. Global Neo and Challenger Bank Market Estimates & Forecasts by Region 2022-2032 (USD Billion)
TABLE 3. Global Neo and Challenger Bank Market Estimates & Forecasts by Business Model 2022-2032 (USD Billion)
TABLE 4. Global Neo and Challenger Bank Market Estimates & Forecasts by Target Customer 2022-2032 (USD Billion)
TABLE 5. Global Neo and Challenger Bank Market Estimates & Forecasts by Services Offered 2022-2032 (USD Billion)
…
This list is not complete, the final report contains more than 100 tables. The list may be updated in the final deliverable.
LIST OF FIGURES
FIG 1. Global Neo and Challenger Bank Market, Research Methodology
FIG 2. Global Neo and Challenger Bank Market, Market Estimation Techniques
FIG 3. Global Market Size Estimates & Forecast Methods
FIG 4. Global Neo and Challenger Bank Market, Key Trends, 2023
FIG 5. Global Neo and Challenger Bank Market Growth Prospects, 2022-2032
FIG 6. Global Neo and Challenger Bank Market, Porter’s Five Forces Model
FIG 7. Global Neo and Challenger Bank Market, PESTEL Analysis
FIG 8. Global Neo and Challenger Bank Market, Value Chain Analysis
FIG 9. Global Neo and Challenger Bank Market by Business Model, 2022 & 2032 (USD Billion)
FIG 10. Global Neo and Challenger Bank Market by Target Customer, 2022 & 2032 (USD Billion)
…
This list is not complete, the final report contains more than 50 figures. The list may be updated in the final deliverable.
FIG 1. Global Neo and Challenger Bank Market, Research Methodology
FIG 2. Global Neo and Challenger Bank Market, Market Estimation Techniques
FIG 3. Global Market Size Estimates & Forecast Methods
FIG 4. Global Neo and Challenger Bank Market, Key Trends, 2023
FIG 5. Global Neo and Challenger Bank Market Growth Prospects, 2022-2032
FIG 6. Global Neo and Challenger Bank Market, Porter’s Five Forces Model
FIG 7. Global Neo and Challenger Bank Market, PESTEL Analysis
FIG 8. Global Neo and Challenger Bank Market, Value Chain Analysis
FIG 9. Global Neo and Challenger Bank Market by Business Model, 2022 & 2032 (USD Billion)
FIG 10. Global Neo and Challenger Bank Market by Target Customer, 2022 & 2032 (USD Billion)
…
This list is not complete, the final report contains more than 50 figures. The list may be updated in the final deliverable.
