According to data released by Finbold, neobanks added 134.8 million new customers in the first half of 2021, reaching a total of 437.2 million. A 44.57% growth from 2020 figures.
Customers in APAC are showing huge interest in digital banks and neobanks. But the offering side is very lively as well. In the first half of 2021, the APAC region accounts for 68 platforms, 4 more than at the end of 2020. 14 of the are India (find more information on India’s neobanks in this article) and Australia for 13.
According to the report by Finbold, traditional banks are facing a competitive and technological challenge. Neobanks offer state-of-the-art digital services thanks to their next-gen IT infrastructure, whereas traditional banking is still dealing with the never-ending story of how to provide digital services with an outdated legacy architecture.
Neobanks have challenges to face, too. They may be popular, and especially among younger people, but they don’t enjoy the same level of trust as traditional banks – yet. Also, Regulators are closely watching all newcomers in the strategic banking and payment markets, to ensure the compliance of regulation and consumer protection laws.
