Portland, OR -- (SBWire) -- 09/22/2017 --The global Neo and Challenger Bank 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.
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.
The neo and challenger bank market analysis is provided in the report with respect to the current trends and future estimations in the following countries, namely U.S., UK, Germany, China, and Australia.
KEY FINDINGS OF THE NEO AND CHALLENGER BANK MARKET STUDY
- The U.S. accounts for the largest customer base in neo bank market in 2016, and is expected to maintain its dominance throughout the forecast period.
- In Challenger bank market, Germany accounts for the lions share in 2016.
- The neo and challenger banks market in China is anticipated to witness the fastest growth rate during 2017-2020.
- Neo banks has the largest customer base in 2016, and is expected to dominate the market in the near future.
- The customer base of challenger banks market is projected to grow at a significant rate during the forecast period.
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Neo and Challenger Bank 2017: What Does the Year Ahead Hold
Digital challenger banks are simplifying the financial world, creating a customer centric approach to services, and transforming the way banking is viewed by the public and the market. In return, they endeavor to deliver larger returns on equity as compared to those offered by prominent traditional banks. They strive to offer greater flexibility when it comes to lending through streamlined operations and costs." states Sheetanshu Upadhyay, BFSI Research at Allied Market Research.