Australia Neobanking Market Report and Forecast 2025-2034

Australia Neobanking Market Outlook

The Australia neobanking market size was valued at USD 25.40 billion in 2023. The market is further projected to grow at a CAGR of 7.9% between 2024 and 2032, reaching a value of USD 50.62 billion by 2032.

Key Takeaways

• Neobanks continue to grow globally due to increased adoption of digital banking solutions, including mobile banking and online account opening.

• The number of users in the neobanking market is expected to amount to 1.73 million users by 2028.

• Key players in the market are Judo Bank Pty Ltd., National Australia Bank Limited, Alex IP Pty Ltd., and Tyro Payments Limited.

The growth of the neobanking market is primarily driven by several key factors. Firstly, rising investments in fintech in Australia have significantly contributed to the market's expansion, with the country experiencing a steady comeback in fintech investment, exceeding USD 1.5 billion in 2021. Additionally, the growing penetration of smartphones and increasing digitalisation has boosted the Australia neobanking market growth, with consumers transitioning towards cashless transactions and digital payment systems.

Moreover, the adoption of innovative digital payment mechanisms like e-wallets and mobile payments, alongside the encouragement of non-contact payment methods during the pandemic, have reshaped the payment landscape and influenced the market positively.

The emphasis on mobile banking and payments has been a prominent factor in increasing the Australia neobanking market share. With the increasing integration of mobile payment solutions within social media platforms and the rise of mobile point-of-sale payments for transaction, neobanks are catering to the evolving preferences of tech-savvy consumers, driving market growth. For instance, in the neobanking market, the average transaction value per user amounts to USD 28.13 thousand as of 2024.

Neobanks in Australia offer innovative checking and savings account services, providing customers with convenient and user-friendly digital banking solutions that cater to their everyday banking needs. Neobanks in Australia also offer loan products with streamlined processes, competitive rates, and digital accessibility, providing customers with efficient and transparent lending solutions that meet their financial needs. Neobanks in Australia provide advanced payment and money transfer services, enabling customers to make secure and fast transactions, both domestically and internationally, through digital channels, enhancing the overall banking experience for users.

Market Segmentation

Australia Neobanking Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Account Type

• Saving Account

• Business Account

Market Breakup by Service Type

• Checking/Savings Account

• Mobile Banking

• Loans

• Payments and Money Transfer

• Others

Market Breakup by Application

• Enterprise 

• Personal 

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Competitive Landscape

Market players are offering user-friendly interfaces, personalised financial solutions, and leveraging artificial intelligence and blockchain to revolutionise the banking sector in Australia.

• Judo Bank Pty Ltd.

• AMP Limited   

• National Australia Bank Limited  

• Alex IP Pty Ltd. 

• Tyro Payments Limited  

• Macquarie Group Limited 

• Bank of Queensland Limited 

• Wise Australia Pty Ltd. 

• Others

Key Highlights of the Report