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The world of financial transactions has been immensely disrupted or even invented with new technological innovations. Neobanking is one of such innovative concepts resulting from Fintech.

The change in the form of new services that cannot be done by the Traditional banks and support just a click away from your smartphone or desktop websites. The digital world has changed the preference of the new DNA.

The customers are interested more in digital platforms and use more of the digital platforms than the traditional banking systems. It saves time. You got the Robo advisors who can attain a mass of people at one single time. The emerging neo-banks are quick, convenient, and financial services on cross-border mobile apps or desktop websites.

Neobanks are the financial digital banks that provide customers with cheaper alternative services through digital space. The neobanks are without any physical branches but 24/7 operable via smartphone apps. The personalized services are offered to the customers by artificial intelligence and technologies to minimize operating costs.

The services by the Neobanks required minimum paperwork with a minimum charge to zero transaction fees and are borderless.

The Neobanks are often known as disruptive technology as they are challenging the traditional banking model. The Pros of the neo-banks are global friendly for travelers, tech-savvy millennials, and also the financial illiterate that can access the bank accounts on their mobile phones.

The global travelers are it office worker or touristic purpose. They can use the Neobanks for transactions across the world. IT helps them to be less worried about the money or even get robbed. An account with neo-banks can be opened in 10 minutes with minimum paperwork.

Another problem encountered in traditional bank systems is the long queues, more amount of paperwork, multiple signatures, or even bank holidays lead to delays in the normal work but with Neobanks consumers are experiencing a hassle-free banking experience with just clicks in their mobile apps.

Neobanks also uses technologies to provide combined services in deposits, loans, debts, and credits all from your mobile screen with easy access in one place. The digital banking system also follows transparency as the key. A real-time operation for the consumers with personalized services and advice for the best investment options.

As per Statista, the market size for the neobanks in 2021 was forecasted to be 66.82 billion US dollars and by 2030 the market size is going to expand up to 2,048.53 billion US dollars. The transaction value in Neobanking is projected to be US$4,020.416m by 2022. An annual growth rate (CAGR) of 22% can be seen in 2022-2026.

The Top Neobanks in the USA:-

1. Chime with 13.1 million account holders.
2. Current with 4.0 million account holders.
3. Aspiration with 3.0 million account holders.
4. Varo with 2.7 million account holders.

The Top Neobanks in the UK:-

1. Monzo with 5.8 million account holders.
2. Revolut with 3.1 million account holders.
3. Starling with 1.9 million account holders.
4. Monese with 1.8 million account holders.

The Top Neobanks in India are:-

1. Jupiter
2. InstantPay
3. PayZollo
4. Freo
5. Chqbook

Overall, the USA got the highest number of digital bank account holders with 29.8 million. The number of neobank users is going to reach 350.12m by 2026 and the user penetration by 4.4% by 2026.

The top 10 Neobanks in 2021 are:-

1. Revolut
2. Statrys
3. N26
4. Monzo.

Source:- Statista