Cart
0

Neo and Challenger Bank Market by Type of Bank (Neo Bank and Challenger Bank) - Global Opportunity Analysis and Industry Forecasts, 2016-2020

Get 20% Free Customization In This Report
BF_171798
Pages: 126
Jan 2017 | 6422 Views
 
Author's : Sheetanshu Upadhyay and Anshuman Budhiraja
Tables: 20
Charts: 24
 

Neo and Challenger Bank Market Overview:

Neo and Challenger Bank Market is registering a CAGR of 50.6% during the forecast period 2016-2020. Neo and challenger bank market has witnessed healthy growth rate in terms of customer base over the past few years, and is expected to witness optimistic growth in the near future.

The global market is driven by factors such as government regulations, convenience offered to consumers, and low interest rates as compared to traditional banks. However, acquisition of customers and profitability are major challenges faced by these banks. Increase in penetration of smartphone and internet in the emerging economies are expected to offer lucrative opportunities for market growth. Recent approvals of MYBank and WeBank by the Chinese authorities have provided opportunities to digital-only banks to expand their presence in China.
 

Neo and Challenger Bank Market Segmentation

Neo and Challenger Bank Market Segmentation


Get more information on this report : Request Sample Pages

Segment Review

The report analyses the neo and challenger bank market in terms of customer base based on bank type and country. On the basis of bank type, the market is segmented into neo and challenger bank. The report provides the market analysis of key countries namely, U.S., UK, Germany, China, and Australia. Neo banks lead the market in terms of customer base, and are expected to maintain their dominance throughout the forecast period. Challenger banks are expected to witness rapid growth in customer base in the near future due to favorable regulatory norms and enhanced convenience offered by these banks. Moreover, high prevalence of mobile and online banking in regions such as U.S., UK, and Australia is expected to drive the market in the coming years. In addition, increase in investments by angel investors and venture capitalists in fintech startups would aid these banks to sustain the competition. Furthermore, widespread launch of digital subsidiaries by traditional banks and large customer base of these banks are expected to supplement the market growth.
 

TOP IMPACTING FACTORS: NEO AND CHALLENGER BANK MARKET

TOP IMPACTING FACTORS: NEO AND CHALLENGER BANK MARKET

 


Get more information on this report : Request Sample Pages


Convenience offered to consumers

Traditional banks offer banking services to businesses and consumers through their branches and other online channels. The emerging trend of neo and challenger banks offering their banking services through digital channels (online or mobile app banking) in Europe and U.S. is expected to boost the market growth. Moreover, customers do not have to visit bank branches for opening bank accounts and processing their loans, which supplement the market growth. Thus, enhanced convenience offered by these banks for such services is expected to increase the customer base and boost the market growth.

Regulations supporting market growth

Approvals and granting of banking licenses by financial authorities have increased over the past few years. This has supplemented the market growth and offered opportunities for development. For instance, Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have approved and granted licenses to neo and challenger banks, namely Atom Bank in June 2015, Tandem Bank in December 2015, Starling Bank in July 2016, and Monzo Bank in August 2016. In addition, German Banking Authority, BaFin, has granted licenses to Fidor Bank in 2009, and N26 bank in 2016. Chinese authorities have approved and granted licenses to WeBank and MyBank to cater to the financial needs of small entrepreneurs. This is expected to positively impact the market growth.

COMPARATIVE SHARE ANALYSIS OF NEO AND CHALLENGER BANK MARKET CUSTOMER BASE, BY COUNTRY 2016 & 2020 (%)

COMPARATIVE SHARE ANALYSIS OF NEO AND CHALLENGER BANK MARKET

 


Get more information on this report : Request Sample Pages


The U.S., UK, and Germany occupy prominent shares in the market in 2016, owing to favorable regulations, higher fintech adoption index, and rise in investments in these countries. The U.S. is expected to be the market leader during the forecast period. China and the UK are expected to witness higher growth rates on account of relaxations in regulatory requirements, high penetration of internet and smartphones, and large untapped consumer base in these countries.

UK: a lucrative market for neo and challenger banks

The UK accounts for approximately one-fifth share of the total customer base in 2016, and is the second largest market in terms of customer base among U.S., Germany, China, and Australia. Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) provides approval of digital banks launched in the UK market. The high penetration of smartphones (64%) and retail banking in the region has contributed to the growth of the neo and challenger bank market. The region has witnessed an influx in the number of neo and challenger banks in the recent years. Atom is one of its first kind of challenger banks that has received funding of $167 million. Some of the other popular digital neo and challenger banks along with their customer base in the region are Atom Bank Plc (40,000), Monzo Bank (40,000), and Pockit (100,000). Fidor Bank Ag and Number26 are few of the challenger banks that were launched in Germany, but intends to expand in the UK market. There are several new banks, which have received or are yet to receive the banking license (challenger bank) or would work in collaboration with traditional banks as neo banks. Starling bank and Tandem were granted banking licenses in July 2016 and July 2015, respectively. Osper, Loot, and Monese are some of the neo banks launched in 2012, 2013, and 2014, respectively.

UK Neo and Challenger Bank Market Customer Base, 2016-2020
 
Competitive landscape

The key market players profiled in the report are Atom Bank Plc, Movencorp Inc., Simple Finance Technology Corporation (acquired by BBVA), Fidor Bank AG (acquired by BPCE Group), N26, Pockit Limited, UBank Limited, Monzo Bank Limited, MyBank (Alibaba Group), and WeBank (Tencent Holdings Limited). They have adopted product launch and partnership & agreements as their key strategies to strengthen their foothold and increase their customer base. Prominent players, such as Atom Bank Plc, N26, UBank, and WeBank, have launched new products and extended their service offerings of existing products to sustain the market competition. The other players in the value chain include Holvi Bank, Hello Bank, Koho Bank, Rocket Bank, and Soon Banque.

KEY BENEFITS

  • The report provides an in-depth analysis of the neo and challenger bank market across major countries as well as the projections of customer base for the forecast period.
  • The projections in the report are based on analysis of the current market trends and highlights the market potential for the period of 2016‐2020 in terms of customer base.
  • The report conducts extensive analysis of the market by following key product positioning and monitoring the top contenders within the market framework.
  • The report provides quantitative as well as qualitative market trends to help the stakeholders in understanding the situations prevailing in the market.

KEY MARKET SEGMENTS OF NEO AND CHALLENGER BANK MARKET

BY BANK TYPE

  • Neo Bank
  • Challenger Bank

BY COUNTRY

  • U.S.
  • Germany
  • UK
  • China
  • Australia

MARKET PLAYERS IN THE VALUE CHAIN

  • Atom Bank Plc
  • Movencorp Inc.
  • Simple Finance Technology Corporation (acquired by BBVA)
  • Fidor Bank AG (acquired by BPCE Group)
  • N26
  • Pockit Limited
  • UBank
  • Monzo Bank Limited
  • MyBank (Alibaba Group)
  • WeBank (Tencent Holdings Limited)
  • Holvi Bank
  • Hello Bank
  • Koho Bank
  • Rocket Bank
  • Soon Banque
 

Chapter: 1 INTRODUCTION

1.1. Report Description
1.2. Key Benefits
1.3. Key Market Segments
1.4. Research Methodology

1.4.1. Secondary Research
1.4.2. Primary Research
1.4.3. Analyst Tools and Models

Chapter: 2 EXECUTIVE SUMMARY

2.1. CXO Perspective

Chapter: 3 MARKET OVERVIEW

3.1. Market Definition and Scope
3.2. Key Findings

3.2.1. Top Winning Strategies
3.2.2. Top Investment Pockets

3.3. Porters Five Forces Analysis

3.3.1. Moderate Bargaining Power of Suppliers
3.3.2. High Bargaining Power of Buyers
3.3.3. Moderate Threat of Substitutes
3.3.4. High Threat of New Entrants
3.3.5. High Intensity of Competitive Rivalry

3.4. Business Model
3.5. Key Market Players Competitive Analysis, 2015
3.6. Market Dynamics

3.6.1. Drivers

3.6.1.1. Convenience Offered To Consumers
3.6.1.2. Best Interest Rates Offered Over Traditional Banks
3.6.1.3. Regulations Supporting Market Growth
3.6.1.4. Key Challenge of Acquisition of Customers
3.6.1.5. Profitability: A Challenge for Digital Banks
3.6.1.6. Increase in Smartphone and Internet Penetration in Economies Such as China

3.7. Developments

Chapter: 4 NEO AND CHALLENGER BANK MARKET, BY BANK TYPE

4.1. Overview

4.1.1. Market Size and Forecast

4.2. Neo Bank

4.2.1. Key Market Trends
4.2.2. Growth Factors and Opportunities
4.2.3. Market Size and Forecast

4.3. Challenger Bank

4.3.1. Key Market Trends
4.3.2. Growth Factors and Opportunities
4.3.3. Market Size and Forecast

Chapter: 5 NEO AND CHALLENGER BANK MARKET, BY COUNTRY

5.1. Overview

5.1.1. Market Size and Forecast

5.2. U.S.

5.2.1. Key Market Trends
5.2.2. Growth Factors and Opportunities
5.2.3. Market Size and Forecast

5.3. United Kingdom

5.3.1. Key Market Trends
5.3.2. Growth Factors and Opportunities
5.3.3. Market Size and Forecast

5.4. Germany

5.4.1. Key Market Trends
5.4.2. Growth Factors and Opportunities
5.4.3. Market Size and Forecast

5.5. China

5.5.1. Key Market Trends
5.5.2. Growth Factors and Opportunities
5.5.3. Market Size and Forecast

5.6. Australia

5.6.1. Key Market Trends
5.6.2. Growth Factors and Opportunities
5.6.3. Market Size and Forecast

5.7. Rest of the World

5.7.1. Key Market Trends

Chapter: 6 RELATED INDUSTRY INSIGHTS

6.1. Cyber Insurance

6.1.1. Executive Summary

6.2. Usage-Based Insurance

6.2.1. Executive Summary

Chapter: 7 COMPANY PROFILES

7.1. Atom Bank PLC

7.1.1. Company Overview
7.1.2. Key Strategic Moves and Developments

7.2. Movencorp Inc.

7.2.1. Company Overview
7.2.2. Key Strategic Moves and Developments

7.3. Simple Finance Technology Corporation (Acquired By Banco Bilbao Vizcaya Argentaria)

7.3.1. Company Overview

7.4. Fidor Bank Ag (Acquired By Bpce Group)

7.4.1. Company Overview
7.4.2. Key Strategic Moves and Developments

7.5. N26

7.5.1. Company Overview
7.5.2. Key Strategic Moves and Developments

7.6. Pockit Limited

7.6.1. Company Overview
7.6.2. Key Strategic Moves and Developments

7.7. Ubank Limited

7.7.1. Company Overview
7.7.2. Key Strategic Moves and Developments

7.8. Monzo Bank Limited

7.8.1. Company Overview
7.8.2. Key Strategic Moves and Developments

7.9. Mybank (Alibaba Group)

7.9.1. Company Overview

7.10. Webank (Tencent Holdings Limited)

7.10.1. Company Overview
7.10.2. Key Strategic Moves and Developments

Other players in the value chain include

  • Hello Bank
  • Koho Bank
  • Rocket Bank
  • Soon Banque

*Profiles of these players are not included. The same will be included on request

List of Tables

TABLE 1. REGULATORY INITIATIVES of KEY COUNTRIES
TABLE 2. NEO and CHALLENGER BANK CUSTOMER BASE, BY BANK TYPE, 2016-2020 (MILLION)
TABLE 3. NEO BANK CUSTOMER BASE, BY COUNTRY, 2016-2020 (MILLION)
TABLE 4. CHALLENGER BANK CUSTOMER BASE, BY COUNTRY, 2016-2020 (MILLION)
TABLE 5. NEO and CHALLENGER BANK CUSTOMER BASE, BY COUNTRY, 2016-2020 (MILLION)
TABLE 6. U.S.: NEO BANK CUSTOMER BASE, 2016-2020 (MILLION)
TABLE 7. UNITED KINGDOM: NEO and CHALLENGER BANK CUSTOMER BASE, 2016-2020 (MILLION)
TABLE 8. GERMANY: CHALLENGER BANK CUSTOMER BASE, 2016-2020 (MILLION)
TABLE 9. CHINA: CHALLENGER BANK CUSTOMER BASE, 2016-2020 (MILLION)
TABLE 10. AUSTRALIA: NEO BANK CUSTOMER BASE, 2016-2020 (MILLION)
TABLE 11. ATOM BANK PLC: COMPANY SNAPSHOT
TABLE 12. MOVENCORP INC: COMPANY SNAPSHOT
TABLE 13. SIMPLE FINANCE TECHNOLOGY CORPORATION: COMPANY SNAPSHOT
TABLE 14. FIDOR BANK AG: COMPANY SNAPSHOT
TABLE 15. N26: COMPANY SNAPSHOT
TABLE 16. POCKIT LIMITED: COMPANY SNAPSHOT
TABLE 17. UBANK LIMITED: COMPANY SNAPSHOT
TABLE 18. MONZO BANK LIMITED: COMPANY SNAPSHOT
TABLE 19. MYBANK: COMPANY SNAPSHOT
TABLE 20. WEBANK (TENCENT HOLDINGS LIMITED): COMPANY SNAPSHOT

List of Figures

FIGURE 1. CURRENT MARKET AREAS and FUTURE OPPORTUNITIES IN NEO and CHALLENGER BANK MARKET
FIGURE 2. NEO and CHALLENGER BANK MARKET SNAPSHOT
FIGURE 3. TOP WINNING STRATEGIES of NEO and CHALLENGER BANK MARKET, 2013-2016 (%)
FIGURE 4. TOP WINNING STRATEGIES of GLOBAL NEO and CHALLENGER BANK MARKET
FIGURE 5. TOP INVESTMENT POCKETS IN NEO and CHALLENGER BANK MARKET
FIGURE 6. PORTERS FIVE FORCES ANALYSIS
FIGURE 7. KEY MARKET PLAYERS COMPETITIVE ANALYSIS, 2015
FIGURE 8. TOP FACTORS IMPACTING NEO and CHALLENGER BANK MARKET, 2016-2020
FIGURE 9. GLOBAL SMARTPHONE PENETRATION STATISTICS
FIGURE 10. LAUNCH of KEY BANKS
FIGURE 11. COMPARATIVE COUNTRY MARKET SHARE ANALYSIS of NEO BANK CUSTOMER BASE, 2016 & 2020 (%)
FIGURE 12. NEO BANK CUSTOMER BASE, 2016-2020 (MILLION)
FIGURE 13. SHARE ANALYSIS of NEO BANK CUSTOMER BASE, BY COUNTRY, 2016-2020 (%)
FIGURE 14. COMPARATIVE COUNTRY MARKET SHARE ANALYSIS of CHALLENGER BANK CUSTOMER BASE, 2016 & 2020 (%)
FIGURE 15. CHALLENGER BANK CUSTOMER BASE, 2016-2020
FIGURE 16. SHARE ANALYSIS of CHALLENGER BANK CUSTOMER BASE, BY COUNTRY, 2016-2020 (%)
FIGURE 17. SHARE ANALYSIS of NEO and CHALLENGER BANK CUSTOMER BASE, BY COUNTRY, 2016-2020 (%)
FIGURE 18. U.S. NEO BANK CUSTOMER BASE, 2016-2020 (MILLION)
FIGURE 19. SHARE ANALYSIS of UK NEO and CHALLENGER BANK CUSTOMER BASE, 2016-2020 (%)
FIGURE 20. COMPARATIVE SHARE ANALYSIS of UK NEO and CHALLENGER BANK CUSTOMER BASE, 2016-2020 (%)
FIGURE 21. UK NEO and CHALLENGER BANK CUSTOMER BASE, 2016-2020 (MILLION)
FIGURE 22. GERMANY CHALLENGER BANK CUSTOMER BASE, 2016-2020 (MILLION)
FIGURE 23. CHINA CHALLENGER BANK CUSTOMER BASE, 2016-2020 (MILLION)
FIGURE 24. AUSTRALIA NEO BANK CUSTOMER BASE, 2016-2020

 

The neo and challenger bank market is still in its infancy stage, however has witnessed a steady growth since its inception. Neo and challenger banks started as a concept to disrupt the financial services industry and restore customer’s confidence post financial crisis, thus providing the required financial capital to the underbanked consumers and underserved SMEs. Banking regulators and other financial authorities have a favorable stance on the approvals for these digital challengers. Regulations and policies favor the opening of fintech startups in Europe over United States. The market has observed an influx of digital neo and challenger banks to cater to the increasing need of consumers. These digital challengers offer the same services of current account, savings account, mortgages etc. with a web or mobile interface thus, reducing their costs (labor, administration etc.), which are then passed on to the customers.

Rise in investments by angel investors and venture capitalists has enabled the growth of these banks in the recent years and is expected to further drive the market in future. For instance, Atom Bank Plc, a UK-based digital challenger bank raised $167.2 million to fund its operations and expand its service offering. The incumbents namely, Greendot Corporation, Capitalone, American Express retaliated with the launch of their respective digital subsidiaries to capitalize on their financial capital and a strong customer pool. Key players operating in this market have adopted diverse strategies to strengthen their foothold. For instance, in May 2016, Fidor Bank Ag entered into a partnership with Telefonica Germany GmbH, a leading provider of broadband, landline and mobile telecommunications services, to launch O2 mobile-bank account. Under this partnership, Fidor bank offered its banking license to the latter that is valid throughout Europe and aid Telefonica Germany GmbH to foray into banking services.

 

PURCHASE OPTIONS

* Taxes/Fees, If applicable will be
added during checkout. All prices in USD.

Reach out to us

Call us on
( U.S. - Canada toll free )
+1-800-792-5285,    Int'l : +1-503-894-6022
Drop us an email at
help@alliedmarketresearch.com

Send Enquiry
 

Request Sample

Request Customization

Request sample

OR

Purchase Full Report of
Neo and Challenger Bank Market- Global Opportunity Analysis and Industry Forecasts, 2016-2020

  • Online Only
  • $2500
  • Online cloud Access only
  • Restricted Print, copy, paste,download
  • Read Only
  • 20% free customization (Pre-Sale)
  •   Free quartery industry update
  •   Free report update (Within 180 days)
  •   Subscription Model Sign In
  • Data Pack
  • $2777
  • Restricted to one authorized users
  • One print only
  • Available in Excel
  • 20% free customization (Pre-Sale)
  •   Free quartery industry update
  •   Free report update (Within 180 days)
  •   Subscription Model Sign In
  • Single User
  • $3677
  • Restricted to one authorized users
  • One print only
  • Available in Excel & PDF
  • 20% free customization (Pre-Sale)
  •   Free quartery industry update
  •   Free report update (Within 180 days)
  •   Subscription Model Sign In
  • Five User
  • $4416
  • Limited to 5 authorized users
  • Print Upto Five Copies
  • Available in Excel & PDF
  • 20% free customization (Pre-Sale)
  •   Free quartery industry update
  •   Free report update (Within 180 days)
  •   Subscription Model Sign In
  • Enterprise
    License/PDF

  • $6159
  • Unlimited within company/enterprise
  • Unlimited within company/enterprise
  • Available in Excel & PDF
  • 20% free customization (Pre-Sale)
  •   Free quartery industry update
  •   Free report update (Within 180 days)
  •   Subscription Model Sign In

*Taxes/Fees, if applicable will be added during checkout. All prices in USD

 

HAVE QUESTIONS?
SPEAK WITH ANALYST

 
 

FREQUENTLY ASKED
QUESTIONS?

 
 

DID YOU MISS ANYTHING?
DO YOU HAVE SPECIFIC REQUIREMENTS?

 
 
 

Why Allied Market Research

 

Infallible Methodology

To ensure high level data integrity, accurate analysis and impeccable forecasts

Analyst Support

For complete satisfaction

Customization

On-demand customization of scope of the report to exactly meet your needs

TARGETED MARKET VIEW

Targeted market view to provide pertinent information and save time of readers

 
 

Featured Reports

 
 

Featured Readings

 

Get Fresh content delivered

Get insights on topics that are crucial for your business. Stay abreast of your interest areas.

 
Get Industry Data Alerts
 

Access reports on all emerging
market of BFSI on Knowledge Tree Platform
Free Demo