Neobanking is set to boom in South Africa, with nearly a quarter (24%) of South African internet users expected to have a digital-only bank account by 2023.

According to Finder’s Neobanking Adoption Report, which polled 2 179 South African internet users, around 15% of adults currently have a neobank account and an additional 9% plan to open one by 2023.

With a further 6% planning to open a neobank account by 2027, just under a third (31%) could have a neobank within five years.

Finder’s global fintech editor, Elizabeth Barry, says neobanks are increasingly popular with consumers. “Neobanks allow consumers to set up an account from the comfort of their own homes. They’re usually quick to set up, low fee and focus heavily on providing a great customer experience.

“However neobanks do still require an internet connection and proof of identity so they’re not necessarily a silver bullet for the unbanked,” Barry adds.

“Neobanks are particularly popular with men – nearly 18% of men say they have a neobank account compared to 12% of women.”

Finder conducted the survey across 14 markets to reveal neobanking adoption in South Africa is at similar levels to Portugal (14%) and ahead of markets like the US (8%).

Of the countries included in the study Brazil (43%) and India (26%) have the highest percentage of adults with neobank accounts, followed by Ireland (22%) and Singapore (21%).