Neobanks are going mainstream globally, but Australia is taking its time
Around the world, neobanks have evolved from niche players into a global force that traditional banks can no longer ignore, according to the Global Neobanking Study 2026 from Simon-Kucher. In Australia, their rise is also evident, but at a slightly slower pace.
Simon-Kucher’s analysis shows that neobanks now capture 39% of new banking relationships worldwide, hold 19% of all accounts, and generate roughly 5% of global retail banking revenue.
Neobanks are digital-only banks that operate without physical branches and typically offer banking services through mobile apps and online platforms. Unlike traditional banks, they are built on modern technology stacks and often focus on lower fees, faster onboarding, and a more streamlined customer experience.
“Neobanks are no longer a niche option for tech-savvy early adopters,” said Christoph Stegmeier, Senior Partner in the Financial Services practice at Simon-Kucher. “They now compete head-to-head with incumbents on customer acquisition, satisfaction, engagement, and relevance.”
In Australia, the emergence of neobanks is also underway, but progress is somewhat slower. Across 16 markets assessed, the authors found that Australian consumers are among the least likely to have a neobank as their primary bank, ranking only ahead of Austria. Around 60% of consumers have used a neobank, but fewer than 15% consider one their primary bank.
On average, Australian consumers have just over 1.8 banking relationships, compared to for instance 2.25 in the leading market (Turkey).
Joshua Koh, Partner at Simon-Kucher, said that while digital banks are gaining momentum globally, Australia stands out for a more gradual shift. “Australia is a market where adoption is strong, but conversion is still catching up. Customers are open to neobanks and value the experience, but when it comes to their primary bank, trust and financial value remain decisive.”
However, momentum is building. Thirty-five percent of Australian consumers expect a neobank to become their primary bank within the next three years, with a further 32% saying this is somewhat likely. This shift is driven by high satisfaction with neobanks across several areas – with neobanks notably outperforming Australia’s Big Four banks on customer satisfaction.
Yet the strong reputation and customer trust built by the Big Four banks (Commonwealth Bank, Westpac, NAB, and ANZ) is still limiting neobank growth compared to other markets. In Australia, the major banks benefit from long-standing customer relationships, integrated credit histories, and products such as home loans that anchor customers over time, according to Simon-Kucher.
For neobanks, Koh said their growth trajectory in Australia will be marked by incremental growth rather than the rapid expansion seen in other markets. Their success will depend on delivering clear financial value: rates, fees, and rewards that meet switching thresholds.
“The next phase of competition in Australia will be won on financial value,” said Koh. “Providers that deliver clear, tangible benefits will be best positioned to turn strong customer engagement into primary banking relationships.”
