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SEON Predicts Neobank Transaction Value Will Hit $2.6trillion by 2027 as “Neobanks Are Here to Stay”

The pandemic catalysed the growth of neobanks as digital-first solutions were prioritised by citizens around the globe. Three years on, customers are returning to banks with branches, but this has impacted the growth of neobanks. In fact, according to a new report by SEON, the fraud prevention software provider, the market will reach a total transaction value of $2.6trillion by 2027. 

Revolut, Robinhood and NuBank are all prime examples of successful neobanks. In 2018, Revolut’s revenue was £58million; just four years later this grew 14 times over, with revenue reaching £850million. While Revolut is arguably the UK’s most popular neobank, in the US, the most successful is Robinhood as the institution has raised $6.2billion since its inception, according to the report.

Furthermore, SEON’s research shows the popularity of neobanks in Brazil. Not only is NuBank the second largest neobank, having raised $4.1billion since inception, based in the country, but nearly half (43 per cent) of the population have some form of a digital bank account. However, the country with the most neobanking users is India. While the overall population of the country using a neobank account is lower, over 371 million citizens have an account.

The report provides a country-specific percentage rate of neobank adoption based on the gap between observed neobank users of 2023 and predicted neobank users by 2027 to identify the nations predicted to have the greatest rise in neobank adoption rates. Here, the Philippines, Mexico and Portugal are leading the charge.

Neobanks aren’t flawless

Digitally native banks have a variety of perks including lower fees, faster onboarding and more accessible services, however, they aren’t flawless. Due to their digital nature, they can be susceptible to fraud. Notably, account opening fraud, identity theft and account takeover attacks are prominent in the field.  The report also highlights the devastating impact that money laundering can have on a neobank; with consequences ranging from a reputation hit, to a fine, all the way to deregistration.

Tamas Kadar, CEO and co-founder of SEON
Tamas Kadar, CEO and co-founder, SEON

Tamas Kadar, CEO, and co-founder of SEON notes: “Our latest ‘Neobanking Index’ shines a light on a thriving sector and highlights why we believe neobanks are here to stay. While there’s a lot to be excited about, those in the field must remain vigilant to the effects of online fraud and financial crime, which have the potential to cause monetary and reputational losses.”

To assist those in the neobanking sector to avoid such difficulties, SEON’s Neobanking Index provides practical guidance on how companies can best protect themselves and their customers from these risks. Broken down into four key levels.


  • Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.

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