Neo and Challenger Bank Customer Base to Grow by 50.6%, Globally, by 2020 - Seite 2

The U.S. accounts for approximately four-fifths share of the global neo bank market in terms of customer base in 2016, and is anticipated to maintain its dominant position throughout the forecast period. Substantial fintech investments amounting to $2.1 billion and $5.5 billion, respectively, have been made in New York and California in 2015, which reflect the market potential. The large SME market in the U.S. is relatively open to innovative solutions, which provide opportunities for challengers to innovate products and services.

The U.S. market is followed by the UK, which also has an impressive customer base, owing to favorable regulations and substantial investments funding such fintech startups. Challenger banks in the UK offer an alternative to banking arrangements for customers to differentiate themselves in terms of value services and improved service quality. Amendments in regulations and deregulation in the banking sector have facilitated the entry of challenger banks in the country. The growth of these banks in the country is on account of the reduced initial capital requirement.

The Chinese market has witnessed the entry of MYBank and WeBank post approval from China Banking Regulatory Commission (CBRC). Baidu, a challenger bank, has partnered with CITIC Bank International to launch its own online bank. The total number of SMEs in China is pegged at 42 million in 2013. The digital challenger banks intend to offer promising technologies and scale up their processes to cater to the underprivileged SME market. As per industry sources, China's mobile banking users increased by 50% in 2014, which reflects the untapped potential in the country.

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 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 lion's 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.