A Decade of Double-Digit Growth: Neobanks to Hit Over $10 Trillion in Transaction Value by 2028

June 23, 6:01 pm

Over the past years, millions of people worldwide have turned to neobanks or app-only banks, choosing them over traditional high-street financial institutions. Although COVID-19 had a major role in this, with digital banking services becoming more appealing amid lockdowns, the global neobanking market continues seeing double-digit growth.

According to data presented by AltIndex.com, neobanks are set to witness a decade of double-digit growth, helping them to hit over $10 trillion in transaction value by 2028.

Europe Remains the Largest Neobanking Market, But China to See the Biggest Growth

Neobanks, sometimes called challenger banks, are fintech companies that offer nontraditional banking services digitally and don't have branches. Some of the largest players in this market include London-based Revolut and Monzo, the US Chime, and Brazilian Nubank. Ever since entering the market, these banks have been a game changer for millions of people searching for alternatives to traditional bank services. All of them saw an influx of clients over the past years, helping them gross more revenue than ever and fuel further market growth.

According to Statista Market Insights, the total transaction value in the global neobanking market has skyrocketed by a whopping 2,660% in the past seven years, rising from $230 billion to $6.37 trillion in 2024. However, the entire market is expected to see even more years of impressive growth.

Statista expects the double-digit transaction value growth to continue by 2028, resulting in a market volume of $10.4 trillion, or 63% more than this year.

In regional comparison, Europe will remain the world's largest neobanking market, accounting for more than half the total transaction value. Statista expects the European neobanking market to grow by 69% and hit a $5.3 trillion value by 2028, up from $3.1 trillion this year.

The US market is projected to grow by 56% in this period, with its transaction value jumping from $1.78 trillion to $2.79 trillion. Although far below the two countries in transaction value, the Chinese market will grow even more. According to Statista, the Chinese neobanking sector will surge by 78% in the next four years and hit a $55.1 billion value, up from $30.8 billion this year.

Almost 390 Million People to Use Neobanking Services by 2028, 80 Million more than this Year

Besides seeing its transaction value jump by more than 60%, the global neobanking market will also draw tens of millions of new users in the following years.

In 2024, more than 301 million people use neobanking services, or 50 million more than last year. Statista expects another 80 million people to flock to the market in the next four years, pushing the total user count to nearly 390 million.

Every third user in 2028 will be from Europe. The US market is expected to count over 80 million users, making up 20% of the world's total. Far behind, the Chinese market will hit 1.4 million users in 2028, up from 1.1 million this year.

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