Digital-only banks are poised for significant growth

• Adoption of digital-only banks is increasing.
• Neobanks, including Chime, are raising the bar for customer expectations.
• Do you work in the Banking industry? Get business insights on the latest tech innovations, market trends, and your competitors with data-driven research.

Sophisticated mobile banking tools are a top factor fueling US neobanks‘ stratospheric rise—one that’s taken on more importance amid the pandemic. Incumbent financial institutions, neobanks, and tech companies alike can benefit from understanding exactly how leading neobanks are raising the bar for customer expectations and trust to successfully scale their businesses.

For example, San Francisco-based Chime—the largest US neobank—has attracted more than 7.4 million account holders by 2019. The company is projected to grow this figure to 19.8 million by 2024.

Overall, the number of digital-only bank account holders is accelerating. This year, 23.1 million will bank this way, with that figuring more than doubling by 2024, according to our estimates.

Insider Intelligence

And by and large, the development of more neobanks in the US will bring awareness to digital-only banking, and eventually wane-out traditional banking firms.

More to Learn

Interested in learning more about the banking space? Here are some related reports that might interest you:

1. The Rise of Banking-as-a-Service, which looks at five major BaaS providers, ranging from fintechs to 20-year-old legacy providers that we think represent a good cross-section of approaches to offering BaaS.
2. AI in Banking, which identifies the most meaningful AI applications across banks’ front and middle offices.
3. The Global Neobanks Report, which explores how the neobank market has grown rapidly, and what’s in store as the industry pivots from hyper-growth to sustainability. Learn more about the financial services industry.