Neobanking 2023

Profits at the end of the tunnel

Profits on the horizon

Since the rise of neobanking, the industry has attracted a myriad of investors and endless new players, with a staggering 100 neobanks launching each year.

In our 2022 Future of Neobanking report, we delved into the industry’s current status, its performance in key markets, and the path to profitability for these disruptors. Back then, this nearly billion-client industry, valued at over 300 billion dollars, grappled with a critical issue: Less than 5% of these challengers had managed to break even. 

The state of the industry

18 months after stating that only five percent or less of the neobanks were profitable, the number of non-profitable banks still by far exceeds the number of profitable banks. The good news is that there is evidence of a growing number of neobanks who appear to have cracked the code or are getting very close to doing so.

Continued customer appeal

The total number of neobanking clients has, as predicted, now stands at roughly 1.1 billion clients globally - on a year-on-year basis that is an impressive increase of almost 20%.

Continuous industry growth

Since 2022, the neobanking industry revenue has increased by 43% with the rise of true neobanking giants truly disrupting their markets and stealing the market share from uncumbent players.

Climbing revenues:

Average revenues increased from $69 to $75 per client level although with wide dispersion accross markets and banks, and still leaving ample room for further growth.

The secret sauce for success


How can you become a “Better Growth” neobank?

At Simon-Kucher, we are the advocates for sustainable and profitable growth.

To make that concept tangible, we launched a new measure of success for the sector, placing Neobanks on our “Better Growth” matrix, identifying those that achieved revenue growth with a clear lens on profitability.

Download our report to find out which 6 neobanks are positioned in our ‘Better Growth’ quadrant and what they do differently from the rest. 


Profit hacking 
Tangible ways to monetize neobanking clients 

At Simon-Kucher, we know this story all too well. In 2016, Madhavan Ramanujan summarized his views in the book Monetizing Innovation, providing a playbook for fast-growing companies who want to avoid these pitfalls. As the neobanking sector is maturing, there are four important lessons for neobanks: 



Forget product-market fit, aim for a product-market-pricing fit


Productize to segments


Leverage the power of bundling


Master the art and science of pricing

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With over three decades of experience working across financial services, Simon-Kucher supports retail banks across the financial services sector. As trusted advisors to banks of all sizes, we understand what it takes to grow in today’s challenging market.

Discuss the report in a one-to-one meeting with a member of our team.