China, India & Brazil lead the way in next gen banking

A new report from Kantar explores the adoption of ‘Neobank’ offerings across the world.
29 October 2019
City banking
kirsty cooke

Head of Digital Content

Alipay, WeChat Pay, Monzo, Nubank and the likes have widely been considered a revolution in retail banking, but their impact on the traditional retail banking market in many major economies has yet to be fully felt. The full report can be downloaded here.

In a survey of 3,000 banking customers around the world, Kantar found:

  • 93% of consumers in China have used neobank services thanks to the integration of financial services with social media services from Alibaba and WeChat
  • 50% of Indians have utilised next-gen services thanks to the popularity of PayTM
  • Almost one third (32%) of Brazilians have used a neobank, primarily Nubank.
  • Across Western Europe only a small minority of consumers has opened a neobank account. The Netherlands and Germany lead with 4% usage; France and Spain are lagging with 2% usage
  • In the USA, only 2% of consumers have utilised the services of a neobank

The new study also finds that;

  • Traditional banks are doing a good job of transitioning their clients to banking app usage, with 60% of traditional bank clients willing to use a banking app. The USA represents the exception, where only one in four are prepared to use a banking app.
  • Neobank customers continue to use traditional banking services, whilst using neobank apps for 40% of their interactions.
  • In Europe and the USA, neobanks continue to face a ‘trust gap’ with clients when compared to traditional banks. Just 19% of customers completely trust their neobank, compared to 47% of traditional bank customers.

Discussing the report, Reg van Steen, the lead author, commented. "In China, India and Brazil, neobanks have made the leap to the mainstream. Elsewhere, however, consumers are still just ‘checking them out’ or ‘cherry-picking’ particular benefits. Neobanks need to develop their value proposition beyond ‘Free and easy’ to persuade consumers to change their primary bank. Traditional banks are very good at being fast followers in the market place but need to move beyond functional needs and tap in to emotions."


From Bricks to Clicks: The impact of neobanks so fardraws on data and insights from across Kantar and provides unique insights, covering actual customer penetration, share of wallet, trustworthiness and likeability of this new category of banks. It provides indispensable information for incumbents and disruptors in the retail banking market. The full report can be found here.