Europe: Early maturity, fragmented momentum
Europe has one of the most established neobanking landscapes, but adoption and competitive intensity vary significantly by market. While digital banking is well entrenched, neobanks face very different levels of primacy and switching resistance across countries.
- Neobanks account for over one-third of new account openings, but primary-bank adoption remains uneven.
- In the UK, almost 60% expect a neobank to become their primary bank within the next three years, roughly double the level seen in Austria and Switzerland, and materially higher than in Germany.
- Switching resistance also differs sharply within Europe: in the UK, switching thresholds are ten times those reported in Germany and Austria, reflecting very different competitive dynamics across markets.
For a deeper dive into how these dynamics are playing out in the UK specifically, see our analysis of neobanking growth, limits, and what comes next.
North America: Strong adoption, slower monetization
Neobanking adoption continues to grow steadily across North America, but monetization remains uneven. While consumers are open to digital banks, primary bank switching thresholds are high, particularly in the US, limiting neobanks’ ability to capture primacy.
- Neobanks now account for close to 40% of new account openings.
- But consumer behavior is relatively conservative: 29% use only one bank, while 60% use multiple banks but with a clear primary provider.
- Consumers in North America require the highest financial incentives globally to switch primary banks - above USD 300 per month in perceived benefits.
Understand why primacy and profitability remain the key challenges in North America.
Latin America: Scale at speed, shifting to primary relationships
Latin America is the most advanced neobanking region in our research. Neobanks have moved beyond early adoption and are increasingly winning primary relationships, not just secondary accounts.
- Neobanks lead new customer acquisition, capturing 40%+ of new account openings in several Latin American markets.
- Multi-banking is widespread, with consumers averaging more than two banking relationships.
- In markets such as Brazil, up to 20% of consumers report having no clear primary bank, signaling that the concept of a primary bank is eroding.
Australia: Competitive market, measured neobank growth
Australia represents a neobanking market where growth is steady and disruption is incremental. Neobanks are gaining traction, but strong incumbents and high competition shape adoption dynamics.
- The number of neobanking accounts is increasing, but large national banks still capture close to half of new banking relationships.
- Primary banking relationships remain relatively stable, with only 14% considering a neobank as their primary bank.
- Cautious switching behavior is reflected in a higher switching threshold than in some markets – around USD 200 per month.
