Isn’t it so much easier to check your bank account status, make deposits and withdrawals or send money to a friend right from your smartphone? You aren’t alone. We’re all loving the convenience of online banking. This is why the global neobanking market is seeing rapid growth. The market is projected to grow from a value of $210.16 billion in 2025 to $3,406.47 billion by 2032, exhibiting a whopping CAGR of 48.9%. What we love best is that Europe leads the world in the adoption of neobanks for personal banking, accounting for 37.75% of the total market share in 2024.  

The digital-first approach and cost-effectiveness are redefining how people and businesses conduct banking. For millennials and Gen Zs, neobanking offers an easy way to manage money with a focus on speed and simplicity. Don’t you know what a neobank can offer you? Let’s lay the foundations. 

What is a Neobank? 

Unlike traditional banks with their sprawling networks of physical branches, neobanks operate exclusively online, primarily through intuitive mobile apps. They leverage cutting-edge technology to deliver a seamless and often superior banking experience. Their services are the same as traditional banks. That’s checking and savings accounts, payment services and, sometimes, even loans. The difference is that they have no physical branch. Everything is available digitally.  

Some neobanks, while operating independently, might partner with traditional banks to provide Deposit Guarantee Schemes (DGS) or equivalent deposit insurance, ensuring the safety of customer funds. 

However, the contrast with traditional banks is stark. Traditional institutions are burdened by legacy infrastructure and costly physical branches. They often struggle to adapt to the fast-paced digital demands of younger consumers. You might have experienced their slower processes, less intuitive online interfaces and, often, higher fees. 

By eliminating these physical overheads, neobanks can offer lower fees, higher interest rates on savings and a level of transparency in pricing that traditional banks often lack. 

Why Millennials and Gen Z Love Neobanking 

Millennials and Gen Z have grown up with smartphones and instant digital interactions. So, it’s no surprise that they expect their financial services to mirror the speed and convenience of other aspects of their lives. A 2024 survey reveals that nearly 99% of Gen Z had used a mobile banking app in the last month. Plus, almost 50% of them preferred to manage their finances exclusively through their phones. Meanwhile, over 65% of millennials prefer digital-only banks. There are multiple reasons for these numbers. 

Amazing User Experience 

Neobank apps are built with a focus on intuitive design and ease of use. Account opening takes mere minutes, entirely online. No cumbersome paperwork or branch visits. Once onboard, you can manage everything, from deposits and transfers to bill payments and budgeting, directly from your smartphone. This digital-first approach aligns perfectly with the preferences of Gen Z and millennials, who prioritise accessibility and seamless digital interactions. 

You’re In Control 

Neobanks often integrate smart features that empower users with greater financial control. AI-driven insights can break down spending habits, automated budgeting tools help you stay on track, and goal-setting features make saving more engaging. These features only add to the user experience, which is a critical factor for 73% of Gen Z when choosing a brand. We understand this and constantly work to offer real-time functionalities and intuitive experiences. 

Your Digital Financial BFF 

Convenience, coupled with transparent fee structures and a mobile-first philosophy, positions the best neobanks as ideal financial partners for Gen Z and millennials. 

Licensed by the European Central Bank, Snappi stands for neobanking that puts you in control. 

We bring you the trustworthiness of traditional banking with the innovative mindset of disruptive fintech. Learn more about our personal banking solutions.