Executive Summary

Neobanks have become more popular by providing competitive offerings like personal finance management features and budgeting tools and wrapping those features in a slick user experience. But nearly every neobank struggles against a common existential threat: profitability.

Three Key Questions This Report Will Answer:

• What factors will drive the neobank market forward in the next five years?
• How are neobanks in different global markets approaching scale versus profitability?
• What are best practices neobanks can take in their profitability pursuit?

WHAT’S IN THIS REPORT? In this report, Insider Intelligence explores how the neobank market has grown rapidly, and what’s in store as the industry pivots from hyper-growth to sustainability. The report begins by examining the global neobank market through the lenses of valuations, users, and accounts. Next, it explores the factors that will propel the neobank market to new heights over the next five years, and the challenge of reaching profitability underpinning this growth. Finally, it discusses how different neobanks in key global markets are prioritizing scale versus profitability, identifying best practices to emulate and pitfalls to avoid.