The Latest Trends and Innovations in Neobanking 2023 (2023)

As the financial industry continues to evolve, neobanking has emerged as one of the most exciting and innovative sectors to watch. With a focus on digital-first solutions, neobanks are shaking up traditional banking models and transforming the way people manage their money.

In this post, we'll explore some of the latest trends and innovations in neobanking and how they're changing the game for consumers and businesses alike.

The rise of neobanking in fintech

Neobanking refers to a type of financial institution that operates entirely online, with no physical branches. These banks offer all the traditional banking services, such as checking accounts, savings accounts, and loans, but with a digital-first approach that leverages technology to provide a faster, more convenient, and more personalized experience for customers.

One of the biggest advantages of neobanking over traditional banking is the ease and accessibility it provides consumers. With neobanking, customers can manage their finances from anywhere, at any time, using their mobile phones or computers. This is particularly beneficial for those who have busy lifestyles and don't have the time or inclination to visit a physical bank branch.

Neobanks also aim to deliver a more personalized user experience, allowing users to organize their money in novel ways and personalize their app experience to suit their financial goals. From a customer service perspective, neobanks set themselves apart from traditional banks by delivering timely support and messaging using social media and in-app chat rather than requiring users to phone a call center or wait days for an email response.

This fresh approach to banking has helped the neobanking industry see significant growth in recent years.

The global neobanking market was valued at $66.82 billion in 2022 and is expected to grow at a compound annual growth rate of 54.8% from 2023 to 2030

Latest trends and innovations in neobanking

Neobanking is a dynamic and rapidly evolving sector. As of March 2023, there are currently 276 neobanks in the world, putting pressure on neobanks to continuously innovate to offer their consumers more than the next latest competitor.

With new trends and innovations emerging in neobanking all the time. Here are some of the most significant that are transforming the industry:

1. Artificial intelligence and machine learning

Neobanks are increasingly leveraging AI and machine learning to provide more personalized and customized banking insights to their customers. Some neobanks use AI algorithms to analyze customer spending patterns and make personalized budgeting recommendations, helping their customers to save and learn how to budget their money more efficiently.

By leveraging spending data in ways that provide their customers with maximum value, neobanks are changing the way that consumers view the use of data, leading to a more positive perception of neobanks over the traditional banking system.

2. Personalized digital experience

Neobanks are also offering a more personalized digital experience to their customers, such as the ability to choose the color of their debit card, set up custom spending categories and even add personal imagery to their savings pots.

Through greater personalization and the inclusion of simple customization options, neobanks can make their platforms sticky, developing a stronger personal and emotional connection with their customers that will help them retain business in the long term.

3. Cryptocurrencies and blockchain technology

Some neobanks are even embracing cryptocurrencies and blockchain technology, allowing customers to manage their cryptocurrency from their neobanking app. One such neobank is Revolut which allows its users to buy, sell, and send crypto at the touch of a button with no hidden fees.

As the crypto market continues to grow and evolve, and with neobanks constantly looking for a competitive advantage, we’ll likely see more neobanks embracing cryptocurrencies in the near future.

4. Environmental and social sustainability

Neobanks are increasingly taking a more socially responsible approach to banking, and some are now enabling their users to schedule and make donations to a charity of their choice from within their banking app.

With 57% of consumers admitting to being more loyal to brands that show a commitment to addressing social inequities, neobanks are becoming the bank of choice for the younger generation looking to align their personal values with the businesses and financial institutions they choose to support.

5. Digital wallets and payments

In addition to providing basic banking services such as checking and savings accounts, neobanks have revolutionized the way consumers make payments and transfer money.

With features such as digital wallets, customers can store their payment information securely and use it to make transactions with just a few clicks, and peer-to-peer payments allow users to transfer funds instantly to friends and family members, even if they don't have an account with the same bank.

For users who regularly travel, neobanks also offer low-cost international money transfers and low exchange rates when withdrawing or spending money in other currencies. This makes it easier and more affordable for neobank users to continue using their neobank card abroad rather than taking out large sums of cash and needing to exchange it back at the end of their vacation.

6. Open banking and API integrations

Thanks to open banking and the simplicity of API integrations, neobanks can expand their in-app offering without disrupting the user experience.

Neobanks are taking advantage of open banking to offer seamless integrations with other financial services, such as investment apps and Buy Now Pay Later (BNPL), but perhaps one of the most interesting uses of open banking by neobanks is in aggregating account information.

By utilizing open banking, neobanks can give their users visibility across all their bank accounts without needing to handle the customer authentication process directly or worry about complying with the revised Payment Services Directive (PSD2) and the General Data Protection Regulation (GDPR).

7. Instant loans and credit

Taking out a loan with a traditional bank can be a long and tedious process. In an attempt to make this process easier for consumers, some neobanks are now offering instant loans and credit approvals to their customers, which can see them access funds in minutes, not days.

By utilizing spending data, neobanks can fast-track the approval process, making it easier for their customers to access additional funds, take out a loan and handle their debt all from within their banking app and, in some cases, without taking into consideration their credit score.

Offering popular banking services such as these encourages users to utilize their neobank cards more, helping to generate revenue for the neobank while simultaneously providing a better experience for the end user.

Staying ahead of the curve by utilizing the power of digital gift cards

In the increasingly crowded neobanking market, neobanks must do more to attract, engage, and retain their customers. Fortunately, digital gift cards enable neobanks to do just that by providing them with a cost-effective, convenient, and versatile tool that can quickly and easily be implemented across any acquisition, engagement, or loyalty program.

By offering digital gift cards as a sign-up bonus or for completing specific actions, such as making a first deposit or referring friends, neobanks can incentivize their users to engage with their banking app and build a regular habit of using their bank cards. Gift cards are also one of the best ways for neobanks to reward existing fans, ensuring they don’t switch to an emerging challenger bank.

With a single API connection to Tillo’s innovative platform, neobanks can tap into 2,000+ brands that people love, ensuring they have the right incentive to offer each and every one of their customers, regardless of their preferences. They’ll also gain access to unbeatable commercial terms, helping to make their programs more cost-effective.

To find out more, get in touch with Tillo today, and we’ll show you the power of digital gift cards in neobanking.


The Latest Trends and Innovations in Neobanking 2023? ›

Similar to open banking services, Neobanking is also becoming increasingly popular as one of the fintech trends in 2023 due to its numerous advantages. More specifically it includes diverse services like digital banking and several types of money transfers as well as investments.

What is the trend in neobanking in 2023? ›

Similar to open banking services, Neobanking is also becoming increasingly popular as one of the fintech trends in 2023 due to its numerous advantages. More specifically it includes diverse services like digital banking and several types of money transfers as well as investments.

What should banks focus on in 2023? ›

According to BAI research, new customer acquisition is the #1 priority for banks in 2023. To unlock their full growth potential, banks must tap into younger generations—segments that desire more convenient, digital-friendly ways of accessing services.

What are the emerging technologies in neobanks? ›

Integrating latest technology like Analytics, Artificial Intelligence, Voice Interfaces etc. have transformed neo banks to maximize their potential. Integrating such technological advancement could help neo banks boost their customer experience.

What is the outlook for commercial banks in 2023? ›

Economic outlook for 2023 is uncertain: Although some economic indicators point to a recession, the resilient job market signals it will look different from recessions in the past. Banks are bracing for downturns: Commercial banks are stepping up loan loss provisions despite consistently strong credit quality.

What is the outlook for the neobank industry? ›

The neobanking market size is expected to grow to $556.66 billion in 2027 at a CAGR of 47.2%. The growing demand for digitalization among banking institutions across the globe is contributing to the growth of the neobanking market.

What innovations will banks see in 2023? ›

3 Financial innovations to watch for banks in 2023
  • Digital evolution. Digital innovations continue to define the market. ...
  • Ecosystem Transformation. As the market changes, so do financial service providers. ...
  • Open Finance. ...
  • Staying ahead of the game. ...
  • How Fincog can help.
Apr 3, 2023

What are the trends in financial industry 2023? ›

Financial institutions embrace a more conservative strategy. More focus on innovation and automation. AI for financial services goes mainstream. Increased focus on compliance and consistent risk management.

What are the key challenges for banks in 2023? ›

What Did Bankers Identify as Top Issues?
  • Retaining and Recruiting Employees. Rising to number one from the second-most pressing issue at 21% going into 2022, more than one-third (34%) of bankers described retaining and recruiting employees as the biggest concern going into this year. ...
  • Regulatory Change. ...
  • APIs/Open Banking.
Feb 23, 2023

What are the 4 pillars of banking of the future? ›

This framework is the digital-first platform, supported by four pillars – omni-channel banking, smart banking, modular banking, and open banking. Each of these four pillars is fundamental to success in the banking industry of the future.

What technology will banks have in the future? ›

Banking Technology Trends

Corporate and retail banks are unlocking insights and competitive advantages through analytics, big data, and AI. Banking data centers are powering advanced analytics, AI, and other new capabilities such as chatbots, real-time risk management, and intelligent fraud detection.

What are 5 new or emerging technologies? ›

Top 5 Emerging Technologies to Watch Out For in 2023
  • Quantum Computing. ...
  • Metaverse. ...
  • Brain-Computer Interfaces (BCIs) ...
  • Synthetic Biology. ...
  • Advanced Robotics and Automation.
Apr 8, 2023

What are the big 5 emerging technologies? ›

The five technologies are Big Data, Machine Learning, Artificial Intelligence, the Internet of Things (IoT), and the Blockchain.

What are the top 7 emerging technologies? ›

Top New Technology Trends
  • Computing Power.
  • Smarter Devices.
  • Datafication.
  • Artificial Intelligence and Machine Learning.
  • Extended Reality.
  • Digital Trust.
  • 3D Printing.
  • Genomics.
Apr 3, 2023

What is the fintech outlook for 2023? ›

The fintech industry is constantly evolving and improving, and 2023 is no exception. It is predicted that the fintech space will multiply and reach $174 billion in 2023. The banking industry has recently experienced a massive surge in adopting fintech solutions as users are becoming more tech-savvy.

What is the economic outlook for 2023 JPM? ›

GDP growth in 2023

Developed Market growth is forecast at 0.8%, U.S. growth is forecast at 1%, Euro Area growth is projected to come in at 0.2%, China's economy is forecast to grow 4.0% and Emerging Market growth is forecast at 2.9% in 2023.

What will banking look like in 2030? ›

Successful banks of 2030 will master data-driven customer experience across channels, underpinned by artificial intelligence and robotic automation. Consumers are becoming far more aware of the value of their personal data and the importance of keeping it safe and secure.

Who are neobanks target customers? ›

Neobanks target tech-savvy consumers looking for simple digital solutions to meet their financial needs.

What is the downside of neobank? ›

Downside of Neobank – Things to Consider

Users are unable to make cash withdrawals and deposits due to the absence of physical bank branches. Chequebooks are not available in neobanks because they are less commonly used by people nowadays.

Who do neobanks target? ›

Startups and SMEs

Neobanks primarily focus on supporting startups, small and medium-sized businesses as traditional banks do not have specific solutions for their business problems.

Which areas of technologies will you invest in 2023? ›

The leading technology trends in 2023 will revolve around AI, cloud, cybersecurity, the metaverse, crypto, robotics, IoT and quantum computing.

What is one small business trend to look out for in 2023? ›

Augmented reality and virtual reality will come into their own. Augmented reality (AR) and virtual reality (VR) have been in the zeitgeist for some time now, but they might see more widespread adoption by businesses in 2023. Best of all, small businesses could take the lead on the trend.

What are the top financial risks for 2023? ›

So, without further ado, let's take a look at the biggest risks likely to drive market sentiment in 2023, starting with:
  • Debt Crises.
  • Central banks overtighten. ...
  • China. ...
  • European energy crisis. ...
  • Inflation. ...
Feb 8, 2023

Which challenges the financial industry will face up the next 5 years? ›

Increasing competition, operational silos, rising costs, and unending pressure from customers to deliver more and better are just a few of the biggest pain points retail bankers are feeling in 2023.

Will central banks be forced to pivot in 2023? ›

Policy makers will shift to focusing on growth rather than inflation. Plus a selection of the writer's favorite columns. Maintaining liquidity may be a challenge in financial markets next year.

Did Bank of America say they expect a recession in 2023? ›

Our base projection is for a recession to occur in the US economy beginning in the third quarter of 2023, occur through the fourth quarter of 2023 and into the first quarter of 2024,” Moynihan said during an appearance at The Financial Review's Business Summit on Tuesday.

What are the 5 C's of banking? ›

Most lenders use the five Cs—character, capacity, capital, collateral, and conditions—when analyzing individual or business credit applications.

What are the 4 C's of banking? ›

Standards may differ from lender to lender, but there are four core components — the four C's — that lender will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.

What will banking look like in 2025? ›

By 2025, Alan McIntyre, senior managing director for banking at Accenture, expects payments to move completely away from cards and phones toward wearables and biometrics. “Whether it is tapping a ring that you wear or facial recognition, the payment will become more seamless,” he said.

What problems can FinTech solve in the next 3 to 5 years? ›

Key Discussion Points
  • India's progress with financial inclusion through Jan Dhan Yojna, and the role of FinTech in driving accessible credit to masses.
  • How UPI showed the way to open Banking through democratized access to funds.
  • Use cases of autonomous finance and strengthening personal finance management.
Feb 24, 2021

What is the next wave of digital transformation in banking? ›

He says that “The next version of digital transformation facilitates modern banking by hyper-personalizing customer experiences, bringing down costs, driving operations in the blockchain (that, in turn, underpins the cryptocurrency), and securing transactions.

What will banking look like in 10 years? ›

The decade of banking after that

We will witness a radical transition from traditional banking to brand-new, hyper-personalised experiences. The financial economy is already boosted by fintech innovation, increasing business-to-consumer (B2C) and consumer-to-consumer (C2C) payments.

What are the 8 essential future technologies? ›

They include: artificial intelligence (AI), augmented reality (AR), blockchain, drones, Internet of Things (IoT), robotics, 3D printing and virtual reality (VR). Today, the Essential Eight continue to evolve and make their mark — with the pandemic accelerating emerging tech adoption.

What are 2 current trends and emerging technologies? ›

Artificial Intelligence (AI) for development. IoT technologies, infrastructure and applications (smart societies) Blockchain technologies, infrastructure and applications.

What are 5 future technologies that will be mainstream? ›

Here are five developments that they should be prepared for in the year ahead.
  • Green tech at a tipping point.
  • Hyper-connectivity and cyber-resilience.
  • Quantum computing R&D.
  • Gene editing goes mainstream.
  • Artificial intelligence everywhere.
Jan 19, 2023

What are 3 emerging trends in technology? ›

The emerging, supporting technologies and trends include (but are not limited to) spatial computing and the spatial web; digital persistence; multientity environments; decentralization tech; high-speed, low-latency networking; sensing technologies; and AI applications.

What are six technologies with potential impacts on US interests out to 2025? ›

They identified the following six technologies as most likely to enhance or degrade US national power out to 2025 1 Biogerontechnology, 2 Energy Storage Materials, 3 Biofuels and Bio-Based Chemicals, 4 Clean Coal Technologies, 5 Service Robotics, and 6 The Internet of Things.

Which technology is best in future? ›

Here is the list of the most in-demand and trending tech skills that will offer you a successful career:
  • Data Science.
  • Cloud Computing.
  • Artificial Intelligence.
  • DevOps.
  • Blockchain.
  • RPA (Robotic Process Automation)
  • Augmented Reality (AR) and Virtual Reality (VR)
  • Cybersecurity.
6 days ago

What are the 6 major technologies? ›

While a single piece of technology often overlaps into different areas, there are generally six different categories of technology: communication, electrical, energy, manufacturing, medical and transportation.

Which technologies are growing the fastest? ›

Autonomous Can't Drive 55

For now at least, technology for autonomous vehicle drive control systems is in the fast lane with a CAGR of 64%, hurtling into the number one fastest growing technology spot.

What are the list of emerging technologies in 2030? ›

Artificial intelligence (AI), cloud computing, and virtual and augmented reality (VR and AR) are among the key technologies that will underpin the delivery of education in 2030.

What is the financial outlook for 2024? ›

Year-over-year, % Annual GDP growth in the United States is projected at 1.5% in 2023 and 0.9% in 2024 as monetary policy moderates demand pressures.

Which sector will boom in 2023 usa? ›

Healthcare. If interest rates remain high and the U.S. economy moves into a recession this year as a result (as many experts are predicting), Akullian points to the healthcare sector as a contender for strong performance in 2023.

What is the JPMorgan strategy for 2023? ›

Our strategists expect the Fed and other central banks around the world to keep interest rates high for most of 2023, but they believe the cycle of interest rate hikes should come to an end sometime next year. Talk of a recession has been ongoing for a while, sending bonds and equities down 15% to 25% in 2022.

What are JPMorgan capital market assumptions 2023? ›

“Our 2023 Long-Term Capital Market Assumptions project asset classes resuming their traditional roles in portfolios, with equities providing strong capital appreciation, fixed income providing meaningful income and alternatives providing diversifying exposure to unique return streams,” said Monica Issar, Global Head of ...

What's going on in banking 2023? ›

Growing deposits will be a priority in 2023. Banks' concerns over small business deposits soared to 72% from 41% in 2022. For credit unions, retail deposits topped the list, skyrocketing from 18% in 2022 to 70% in 2023.

Is there a banking crisis 2023? ›

In the immediate aftermath of the SVB and SB failures, according to data published by the Federal Reserve, smaller U.S. banks lost nearly $200 billion in deposits in the week ending March 15, 2023.

What is the future of neobanks? ›

Neobanks are now being heralded as the future of banking. According to statistics, the global neobanking market size stood at $47.39 billion in 2021 and is estimated to grow at an astronomical rate (compounded annual growth rate) of 53.4 per cent from 2022 to 2030.

What makes a neobank successful? ›

Licensed neobanks are disrupting the global financial services industry on the back of strong trends, but their long-term success hinges on their ability to create an artificial-intelligence-powered banking model that is customer centric, operationally efficient, and profitable at scale.

What are the key success factors for neobanks? ›

The main success factor for neobanks
  • Smartphone popularity and on-the-move data availability.
  • A shift in trusting digital retail experiences that require less physical interaction.
  • Service availability for previously unserved markets, such as remote populations, seeking financial services.
Feb 22, 2023

Is Zelle a neobank? ›

Neobank pioneer Varo Bank has become the first digital bank to join Zelle's payment network.

Is venmo a neobank? ›

Neobanks are mobile-native alternatives to traditional branch-based banks. Young businesses in the sector like Cash App, Venmo, Chime, Money Lion, and Dave offer a suite of services including checking and savings, prepaid cards, peer-to-peer payments, paycheck advances, and mobile investing.

Who is the parent company of Neo bank? ›

The company's Neo Money™ account is provided by Concentra Bank, a Canadian chartered bank and CDIC member. Your savings would be covered under CDIC for up to $100,000.

What is the future of fintech 2023? ›

The fintech industry is continuously evolving, driven by advances in technology and changes in consumer behaviour. 2023 will witness significant trends in AI and machine learning, blockchain, digital banking and mobile payments, cybersecurity and fraud prevention, and open banking and API integration.

Are neobanks the future of banking? ›

As technological transformations continue to disrupt the world, neobanks too could one day eclipse the traditional banks and become the future of banking.

Will money markets go up in 2023? ›

Progressing into 2023, we are likely coming into the tail end of the Fed's rate tightening cycle. Based on federal fund futures, the market anticipates a terminal rate in the 5.25% to 5.50% range. Sensitive to economic data and Fed speak, the futures can be volatile.

What does the future of fintech look like? ›

We expect fintech to become increasingly important as the boundaries of the digital and physical worlds blur further. Fintech offers the ability to move seamlessly between these worlds by unifying our digital and physical wallets and identities, facilitating commerce and economic activity.

How big is the fintech market in 2023? ›

The global fintech market attained a value of approximately USD 194.1 billion in 2022 and is expected to grow in the forecast period of 2023-2028 at a CAGR of 16.8% to reach USD 492.81 billion by 2028.

What are the weaknesses of neobanks? ›

Downside of Neobank – Things to Consider

Users are unable to make cash withdrawals and deposits due to the absence of physical bank branches. Chequebooks are not available in neobanks because they are less commonly used by people nowadays.

What markets will boom in 2023? ›

Three Key Sectors in Which to Invest in 2023
  • Consumer staples. ...
  • Precious metals. ...
  • Healthcare.
Jan 12, 2023

Should I withdraw my money from the bank 2023? ›

Despite the recent uncertainty, experts don't recommend withdrawing cash from your account. Keeping your money in financial institutions rather than in your home is safer, especially when the amount is insured. “It's not a time to pull your money out of the bank,” Silver said.

How high will the cash rate go in 2023? ›

How high will the cash rate rise? Here's what Australia's big four banks are predicting about the movements of the RBA cash rate in 2023: ANZ: Following the RBA's April cash rate hold, ANZ economists now expect one more hike of 25 basis points in August, which means the cash rate would peak at 3.85%.

What are the top 5 trends in fintech? ›

  • Data-driven platforms and automation. ...
  • AI-driven hyper-personalized customer experiences. ...
  • Payment diversity: Embedded finance, blockchain and crypto. ...
  • Risk management tech: Compliance, privacy and cybersecurity. ...
  • Quantum computing: The rise of the new fintech era.
Feb 7, 2023

What are the five trends shaping the future of fintech? ›

Fintech trends are constantly evolving and shaping the future of financial services. These trends include the adoption of digital currencies, the rise of robo-advisors, the growth of peer-to-peer lending, and the emergence of blockchain technology.

What is the next big thing in finance? ›

The next big thing in finance is fintech, which is to say, how finance and the world of finance grapples with and integrates all of these advances in technology that will impact how individuals save, how they invest, and how they interact with all aspects of their finances.


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