Neo bank are digital-only banks without any physical branches and operates on a partnered bank license in the market. These banks provide digital and mobile-first financial payment solutions, remittances & money transfers services, lending, checking & saving account, insurance, and mortgages completely via mobile applications. In addition, neo banks also provide value-added services such as automated accounting, expenses management, and payroll, especially to growing small & medium enterprises.
Challenger banks are established firms and operate with a full banking license in the market. These banks provide services such as lending, investments & savings accounts, checking & merchant accounts, mobile banking, credit cards, mobile banking, and others (retirement savings, insurance products, and buying & selling of cryptocurrency). These banks are continuously challenging over existing traditional banks, by innovating & integrating several technologies in their product offerings.
Together, neo and challenger banks have entered in the banking industry with advance features, real-time services and client-centric products & services posing challenges for the existing traditional banks in the market.
Higher interest rates offered to customers over traditional banks, government & regulatory supports toward banking operations, and better convenience provided via mobile applications are major driving factors of the market. However, acquiring customers online and profitability for these start-up banks limit the market growth. Moreover, the neo and challenger bank market is expected to have lucrative opportunities such as to expand their business by strengthening online offerings to unbanked population in the emerging economies. In addition, business expansion, development of existing banking portfolio, bundling the product offerings and provide customized solutions are remaining some other focus areas for these Fintech banks in the upcoming years.
The neo and challenger bank market is segmented on the basis of service type, end user, and region. In terms of service type, it is classified into loans, mobile banking, checking & savings account, payment & money transfer, and others. By end user, it is bifurcated into business and personal. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the global neo and challenger bank market analysis are Atom Bank plc, Fidor Solutions AG, Monzo Bank Limited, Movencorp, Inc., MYbank, Number26 GmbH, Simple Finance Technology Corporation, Tandem Bank, UBank limited, and WeBank. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.


  • The study provides an in-depth analysis of the global neo and challenger bank market along with the current & future trends to elucidate the imminent investment pockets.
  • Information about key drivers, restrains, and opportunities and their impact analysis on the market size is provided in the report.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
  • The quantitative analysis of the global neo and challenger bank market from 2020 to 2027 is provided to determine the market potential.

By Service Type

  • Loans
  • Mobile Banking
  • Checking & Savings Account
  • Payment & Money Transfer
  • Others

By End Users

  • Business
  • Personal

By Region

  • North America
  • ·U.S.
  • ·Canada

  • Europe
  • ·UK
  • ·Germany
  • ·France
  • ·Italy
  • ·Spain
  • ·Netherlands
  • ·Nordic Countries
  • ·Rest of Europe
  • Asia-Pacific
  • ·China
  • ·Japan
  • ·South Korea
  • ·India
  • ·Australia
  • ·Singapore
  • ·Rest of Asia-Pacific
  • ·Latin America
  • ·Middle East
  • ·Africa

Key Market Players

  • Atom Bank plc
  • Fidor Solutions AG
  • Monzo Bank Limited
  • Movencorp, Inc.
  • MYbank
  • Number26 GmbH
  • Simple Finance Technology Corporation
  • Tandem Bank
  • UBank limited
  • WeBank