According to research firm Statista the worldwide market size of neobanks and challenger banks was estimated to be nearly $47 billion in 2021. The sector is expected to grow at an annual rate of 53.4 percent until 2030, reaching a value of $2.05 trillion that year. (Source: Neobanks global market size 2021 | Statista) Still, neobank deposits are a fraction of the $19.2 trillion in total bank deposits in the U.S., as tracked by YCharts.
With that growth, there are signs that consumers are turning to fintechs such as neobanks for more of their everyday banking needs. Thirty-one percent of U.S. consumers named a fintech firm their “primary financial relationship” in 2021, up from only 6% in 2019, according to EY. And slightly more than half (53%) of those consumers have set up direct deposit with a fintech company.
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