United States Neobanking Market is growing at a CAGR of 27.32% due to the Surge in Internet Usage and Reduced Costs

The neobanking market is witnessing significant growth due to the growing number of internet users and the integration of advanced technology. This trend is further propelled by reductions in fees and operational costs, making banking services more affordable and attractive to a wider audience.

According to the Markets and Data Research report, “United States Neobanking Market Assessment, By Region, Opportunities, and Forecast, 2018-2032F”, the United States Neobanking market is valued at USD 34.56 billion in 2024 and is anticipated to reach USD 263.67 billion by 2032F, growing with a CAGR of 27.31% in the forecast period 2025 – 2032F owing to a growing number of internet users worldwide. For instance, in 2024, SoFi, the digital personal finance company, announced the expansion of a new small business marketplace inside the SoFi product experience. This new feature will allow SoFi to serve millions of American small business owners by connecting their financing needs to SoFi's network of providers. Furthermore, in 2024, Chime Financial Inc., a prominent company in the United States Neobanking market, launched MyPay. This new feature enables eligible members to access up to USD 500 of their pay, including government benefits, before payday with no interest, credit check, or mandatory fees. This new offering transforms how people in America access their earnings every day.

The usage of high technology while opening an account speedily attracts customers in search of quick and less time-consuming banking services. The offering generates wider market opportunities due to digitalization and financial inclusion, while demanding shifts due to preferences for tech-savviness and customized banking experiences. With a supportive regulatory framework, strict standards of compliance, and the rapid acquisition of new technologies, neobanks can execute their functions securely and efficiently. Increased access to smartphones and the internet has laid a concrete foundation for neobanking services to reach everybody worldwide and continue growing in this field.

Neobanking refers to banks that operate exclusively online, without any physical branches. These digital-first banks offer traditional financial services, such as current and savings accounts, through mobile apps and websites, often with minimal or no fees. By leveraging digital technology, neobanks provide quick account openings, real-time transactions, and seamless user experience, addressing the increasing demand for convenient and efficient banking solutions in the modern digital age.

Spread through 121 pages, the "United States Neobanking Market" report includes an in-depth TOC, over 18 market data figures, the latest market developments, key drivers and opportunities, and a thorough study of major company profiles. Moreover, the report offers strategic recommendations, pricing analysis, market share analysis, and value chain analysis in detail.

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Key Takeaways:

• Due to the growing frequency of fraudulent activities worldwide, along with the reduced costs and innovative services as well as the integration of advanced technologies, the United States neobanking market is anticipated to grow exponentially.
• AI and machine learning help neobanks to provide customized financial services, from tailored investment recommendations to fraud detection in real-time, aside from automating routine jobs and reducing human errors.
• Additionally, lower fees and customized and innovative services have powered the growth of neobanks in the financial services market. It has transformed the rules of competition and changed customer perceptions of banking.
• West region holds a significant share of the United States Neobanking market and is estimated to experience robust growth in the forecast period due to the increasing population in urban areas and major technology hubs in the region.

The global fraud detection and prevention market is segmented into the following categories:

By Account Type: Savings Account, Business Account

By Application: Enterprises, Personal, Others

By Service: Mobile Banking, Payments and Money Transfer, Checking/Savings Account, Loans and Insurance, Investments, Others

By Region: Northeast, Midwest, West, South

Based on region, the West segment is holding a considerable share of the United States neobanking market in 2024. The region is experiencing continuous growth and is expected to reach USD 105.68 billion by 2032F, due to the increasing population in urban areas, expanding the customer base for neobanking services. Additionally, major technology hubs like Silicon Valley promote innovation and early adoption of digital solutions, supported by advanced digital infrastructure that enhances online banking experiences for consumers seeking convenience and efficiency. Furthermore, the West places great emphasis on fintech, supported by enormous venture and technology company investments. The combination of such factors puts the West in a competitive position for the growth of neobanking market, setting the trends and benchmarks for the remainder of the country, while fastening an already leading position in the market. 

Northeast region is turning out to be the main force in the United States neobanking market as the region is among the major financial centers, with innovations and venture capital investments in digital financial services flowing from cities such as New York. The Northeast indeed has a very high population density in the urban centers, hence offering a great market potential for neobanking solutions.

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Major Companies Operating in the United States Neobanking Market include:

• Chime Financial Inc.
• Acorns Grow Incorporated
• Revolut Group Holdings Limited
• Alliant Credit Union Corporation
• Finco Services Inc. (Current)
• Primis Financial Corporation
• M1 Finance LLC
• SoFi Technologies Inc.
• Zeta Services Inc.
• Axos Financial Inc.

Key players are making huge investments in new products and services to increase their market presence. For instance, in May 2024, Chime Financial Inc. is integrating FairPlay's Fairness-as-a-Service solutions to further its mission of helping Americans achieve financial progress. By embedding FairPlay's technology into its underwriting models, Chime will enhance members' access to short-term liquidity and credit-building opportunities.

Since companies focus on research and development activities, they are able to provide innovative new features that continue shaping the changing needs of consumers and manage the competitive advantage of companies. Market players focus on strategic plans for expansion across various regions. These include new product development, partnering through contractual agreements, and merger and acquisition deals to expand their portfolio with new technologies and market opportunities. Further, additional investment in technology and infrastructure added to the points of scalability of operational improvement and better service delivery. Strategic partnerships between organizations and other fintech startups contribute to the innovation of ideas and the expansion of services available. Put together, these activities underline a dynamic and fast-changing neobanking landscape with continuous innovation and global expansion. Also, in March 2024, Chime Financial Inc., a major player of the United States Neobanking market announced that chime members can now reap more rewards as the company introduced its new cashback feature called Chime Deals in partnership with Upside Services Inc. Cashback opportunities offered by this feature include up to USD 0.22/gal back on gas, up to 11% back on groceries, and up to 24% back on dining at over 30,000 locations nationwide. All cashback offers are accessible using Chime Visa Debit Cards and Chime Credit Builder Secured Visa Credit Cards. In January 2024, Helix by Q2 Software, Inc. announced a partnership with Acorns Grow Incorporated to launch Acorns’ Mighty Oak Debit Cards.

Additionally, In September 2024, Revolut Group Holdings Limited announced that receive an investment of USD 45 billion from Abu Dhabi’s Mubadala Investment Company. The transaction ensured Mubadala became part of an elite group of investors in the company. Additionally, Revolut Group Holdings Limited announced the rollout of Revolut Pay to enhance fraud risk combat in the crypto ecosystem. The launch aimed to offer a shield to users of crypto exchanges and implement additional security measures to protect their digital assets.

“United States Neobanking Market Assessment, 2018 - 2032F” evaluates the future growth potential of the United States neobanking market and provides statistics and information on market size, structure, and future market growth. The report intends to provide advanced market intelligence and help decision-makers make investment decisions for their organizations more strategically. Moreover, the report identifies and examines the emerging trends along with key drivers, challenges, and opportunities in United States neobanking market.

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