A neobank is a type of digital bank without any physical branches. Operating exclusively online, neobanks offer traditional banking services through mobile apps and other digital platforms. They focus on providing a more streamlined, technology-driven approach to banking, offering services like checking and savings accounts, payments and money transfers, and sometimes lending.
The transaction value of neobanks is expected to show an annual growth rate (CAGR 2023-2027) of 18.75% resulting in a projected total amount of US$1,534.00bn by 2027 and the number of users is expected to amount to 28.20m users by 2027.
Sam Boboev, COO & co-founder Botcommerce.io
In Simpler Terms
Using the services of a neobank means managing all your banking needs from your smartphone. Need to split a dinner bill with friends? Just transfer your share through the neobank app. Want to check your account balance or recent transactions while in line for coffee? It’s just a few taps away. Even depositing a check can be as simple as taking a photo of it with your phone. Revolut, anyone?
