Global Neobanks Industry Report 2024: Monzo, Revolut, Nubank, and KakaoBank – The Digital Challenger Banks

Dublin, March 07, 2024 (GLOBE NEWSWIRE) — The “Digital Challenger Banks – The Dawn of Profitability” report has been added to ResearchAndMarkets.com’s offering.

The report analyses strongly performing digital banks worldwide and provides an understanding of essential factors for building successful neobanks, and discovering reasons for neobank failures and prevention strategies are crucial aspects of navigating the evolving financial landscape .Digital-only banks have become commonplace across the world, offering a digital-first approach to banking that focuses on an improved customer experience. Historically, these banks have focused on customer acquisition at all costs, placing doubt on their ability to turn a profit in the long run.

However, the tide seems to be changing, with a number of the neobanks examined in this report seeing their first glimpse of profitability. This review focuses on some of the most interesting neobanks (including Monzo, Revolut, Nubank, and KakaoBank) and covers a range of categories, such as financial performance, product offering, and funding. It also examines two notable neobank failures and what other challengers can do to avoid such a fate.

2023 saw a remarkable transformation in the fortunes of digital challenger banks, particularly in the context of surging interest rates driven by global efforts to tackle inflation through monetary policy. Many neobanks were still on the journey towards generating a profit. However, a notable shift unfolded in 2023, with a significant majority of digital players not only anticipating but also realizing a full year of profit. This trend was largely propelled by a substantial increase in net interest income. The shift underscores a pivotal turning point for digital challengers, marking their increasing financial sustainability and resilience in an ever-evolving market landscape.

Scope

• Traditional banks and neobanks alike have reaped the benefits of increased interest rates. Neobanks with lending products have experienced a stark increase in net interest income. However, rates are expected to begin falling in 2024, so neobanks will need to acquire more customers to generate similar revenues.
• Neobanks face a crucial opportunity to strategically allocate profits from this prosperous period. With the upcoming decline in interest rates, it is imperative for them to wisely invest in expanding lending portfolios and acquiring income-generating assets such as treasuries. This proactive approach is essential for neobanks to not only sustain but enhance their profitability, showcasing strategic foresight in the evolving financial landscape.
• Successful neobanks have begun exploring new revenue streams, such as launching investment and cryptocurrency trading products, premium accounts for the mass affluent, and even white labeling their in-house software.

Reasons to Buy

• Identify some of the strongly performing digital banks across the world.
• Learn about the key factors that are essential to building a successful neobank.
• Discover why neobanks fail and what they can do to avoid it.

Key Topics Covered:

1. Executive Summary
1.1 Overview
1.2 Key findings
1.3 Critical success factors

2. The Global Digital Challenger Bank Market
2.1 Neobanks are a global force in retail banking

3. The UK
3.1 Monzo
3.2 Starling
3.3 Chase UK

4. The European Economic Area
4.1 Revolut
4.2 bunq
4.3 N26

5. Americas
5.1 Chime
5.2 Nubank

6. Asia-Pacific
6.1 Trust Bank
6.2 KakaoBank
6.3 GXS Bank
6.4 ZA Bank
6.5 Alex Bank

7. Neobank Failures
7.1 Xinja
7.2 Orange Bank

8. Appendix
8.1 Abbreviations, acronyms, and initialisms
8.2 Methodology
8.3 Secondary sources
8.4 Further Reading

• About the Publisher
• Contact the Publisher

List of Figures
Figure 1: Digital providers have seen an increase in popularity since the COVID-19 pandemic
Figure 2: Neobanks have been consistently growing their asset portfolios
Figure 3: Monzo has drastically increased its net interest income
Figure 4: Monzo’s newly unveiled investment offering
Figure 5: Starling’s balance sheet approach has led to two full years of profitability
Figure 6: Starling’s lending portfolio now consists mostly of mortgages
Figure 7: Revolut offers five different current account tiers
Figure 8: Countries in which Revolut operates
Figure 9: bunq offers three paid current accounts and one free savings account
Figure 10: Asia-Pacific consumers are the most positive towards digital providers
Figure 11: KakaoBank’s rapid expansion of its lending products has facilitated income growth
Figure 12: GXS gamifies everyday banking tasks via a bingo competition
Figure 13: ZA Bank’s loan book saw only limited growth in 2022
Figure 14: ZA Bank customers are unhappy with the digital services they receive
Figure 15: Alex Bank has consistently attracted deposits and loans since its reporting started

A selection of companies mentioned in this report includes

• Monzo
• Starling Bank
• Xinja
• ZA Bank
• GXS Bank
• GXBank
• Nubank
• Chase UK
• Revolut
• bunq
• N26
• Chime
• Trust Bank
• KakaoBank
• Alex Bank
• Orange Bank

For more information about this report visit https://www.researchandmarkets.com/r/abm693

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