Neobanking Reaches Mainstream Adoption, Claims 1.4B Accounts Globally

2026-03-24 - 06:40

Globally, neobanking has evolved from a niche proposition for tech-savvy early adopters to becoming a mass-market sector. According to strategy consulting firm Simon-Kucher, the sector now serves 1.4 billion accounts globally, representing 19% of total banking accounts. These companies continue to attract new customers by delivering strong customer satisfaction and innovative products, posing an increasing threat to banking incumbents who are losing ground. The 2025 Simon-Kucher Neobanking Study, conducted across 16 markets, revealed that regional banks are particularly hard hit, losing relevance worldwide against neobanks and experiencing plummeting acquisition shares. In 2020, 33% of the customers polled across these markets became new bank account holders at a regional bank over the prior year. By 2025, that figure had declined to 26%, falling to 29% in 2022-2023. In comparison, neobanks captured 39% of new banking relationships worldwide in 2025. Among the markets studied, regional banks in Canada, Australia, the UK, Mexico and Argentina suffered the most, with account acquisition shares ranging from 17% to 22%. Regional bank account acquisition share over time, Source: Simon-Kucher Neobanking Study 2025, Neobanking beyond disruption, 2026 Neobanks’ biggest strengths Neobanks excel in customer experience, low fees, and innovation. Notably, 52% of customers were satisfied with their primary neobank, compared to 40% for large and national banks. Customers also praised the simplicity of opening an account, the digital banking experience, and the competitive charges offered by neobanks, which they found superior to those of traditional banks. Despite these advancements, large banks maintained a lead in trust, security, and service breadth. Customer ratings of neobanks versus large banks by value driver, Source: Simon-Kucher Neobanking Study 2025, Neobanking beyond disruption, 2026 Neobanks also lead in innovation. Notably, findings from the study revealed that customers are turning to neobanks for newer, higher-engagement categories such as investment products and cryptocurrencies. 48% of customers with alternative investments, including cryptocurrencies, maintained these products at a neobank, a figure that stands at 34% for investment products. These results suggest that neobanks are gaining traction in areas where innovation and speed are paramount. Reasons for shifting to a neobank The study also revealed that consumers switch to neobanks primarily for financial incentives, citing higher savings rates, greater cashback rewards, and fee-free checking as top reasons. However, the thresholds are highly location specific, with customers in North America, for example, demanding significantly larger financial incentives than customers in Latin America (LatAm) or Central Europe. Cultural nuances also shape decisions. Customers in Brazil prioritize fast customer support, while in Nordic countries, they place a high priority on good app experiences. The state of neobanking The neobanking industry has reached mass scale and mainstream adoption worldwide. As the sector matures, the number of neobanks has declined, with customer growth and revenue increasingly being concentrated among a small group of global leaders. Nubank from Brazil and Revolut from the UK serve 131 million and 65 million customers, respectively, making them among the biggest neobanks in the world. In addition, more than 20 institutions now exceed 10 million customers and roughly 100 have passed the one-million-user mark, according to a global analysis conducted by Simon-Kucher. Customer relationships are also deepening, with more users shifting lending, deposit, and investment activity to neobanks. As a result, revenues per customer jumped to approximately US$100 per account per year in 2025, up from US$75 in 2023, according to the firm. This improvement signals continued progress toward neobanking profitability. Regional differences While neobanking has risen globally, regional dynamics vary. In Asia-Pacific (APAC), success hinges on building strong network effects, performing well with loans, and navigating local regulations effectively. Despite the region’s massive scale and potential, many neobanks still struggle to make profits because each customer generates relatively little revenue on average. However, more established players are starting to improve their profitability and catch up to their financial goals. LatAm continues to lead global neobanking growth, with Brazil and Mexico emerging as leaders. Across the region, the competitive focus is now shifting from pure customer acquisition to higher average revenue per customer. In Europe, where neobanking first took shape, the market is evolving unevenly. The UK remains the clear leader, with more than 30 million accounts and global brands such as Wise, Starling, and Monzo. France continues to grow steadily through a mix of international and domestic players. However, momentum is weaker in Germany and Austria, where only 10-15% of consumers currently bank with a neobank. In Italy and Spain, fewer local champions have emerged, but international players like N26 and Revolut are rapidly gaining traction. Featured image: Edited by Fintech News Singapore, based on image by sosiukin via Freepik