Digital banks continue to experience rapid growth in users, assets and revenue, with Brazil’s Nubank, ING (Global) and China’s WeBank leading the sector. Profitability among digital banks has improved, with a shorter time to break even. Nubank, ING (Global) and WeBank are the world’s top three digital banks Profitability among digital banks has improved, with a shorter time to break even WeBank, ING (Global), Ally Bank, Nubank, Wio Bank and TymeBank are the top digital banks in their respective regions Singapore, 20 February 2025 - Brazil’s Nubank, ING Global and China’s WeBank lead the TABInsights’ World’s Top 100 Digital Banks Ranking 2025. This annual ranking highlights the most successful first- and second-generation digital banks, operating independently from traditional commercial banks to provide a unique virtual customer experience. Collectively, these 100 banks held $2.4 trillion in total assets, $2 trillion in deposits, $1.4 trillion in loans and generated $78 billion in total revenue at the end of financial year (FY) 2023. Their combined assets, loans, deposits and revenue grew at a compound annual growth rate of 7%, 8%, 7% and 18%, respectively, from FY2021 to FY2023. Top-ranked banks by region include TymeBank for Africa, WeBank for Asia Pacific, ING (Global) for Europe, Wio Bank (UAE) for the Middle East, Ally Bank (US) for North America, Nubank for Latin and South America, SeaBank (Indonesia) for Southeast Asia and Revolut for the UK. Nubank, ING (Global) and WeBank are the world’s top three digital banks Nubank rose from fifth place in 2024 to first in 2025, achieving a pre-tax return on equity (ROE) of 27% in 2023. Its strategy shift to multi-product offerings helped grow its customer base from 33.3 million in FY2020 to 93.9 million in FY2023, and its revenue surged by 85%, driven by a 119% increase in net interest income. Despite higher non-performing loans, Nubank excelled in credit risk management, reaching a record 10.2% risk-adjusted net interest margin in the fourth quarter (Q4) of 2023. Notably, Nubank allocates only a small percentage of its total operating expenses to marketing but has become one of Brazil’s most valuable brands. ING (Global), the largest digital bank by asset size, surpassed Ally Bank to secure second place, outpacing both Nubank and WeBank in coverage, profitability and balance sheet dimensions. In FY2023, ING (Global) improved its profitability, achieving a 24% revenue growth driven by higher interest rates, following a 1% decline in FY2022 due to the discontinuation of retail operations in France and the Philippines. WeBank, with the largest user base among digital banks worldwide, demonstrated financial resilience through strong operational efficiency, achieving a cost-to-income ratio (CIR) of 32% and an impressive pre-tax ROE of 30% in FY2023. Its ongoing investment in research and development, with annual technology spending consistently exceeding 9% of revenue, enhances its technological capabilities and market competitiveness. Nine of the top 10 digital banks in the 2024 ranking remain in the top 10 for 2025, with Toss Bank entering ninth place and K Bank from South Korea dropping out. The top 10 banks have built significant asset sizes and customer bases, with assets ranging from $16 billion and nine million customers as of FY2023. On average, these banks offer 8.3 top-line products, compared to 6.6 for the top 100 digital banks. Their strong profitability is reflected in an average pre-tax ROE of 22% and a CIR of 40%. All top 10 banks reported full-year profitability for FY2023, except for Toss Bank, which broke even by the third quarter (Q3) of 2023. Profitability among digital banks has improved, with a shorter time to break even In the 2025 ranking, 61% of the top 100 digital banks reported full-year profitability, up from 48% in 2024. These banks achieved an average ROE of 16% in FY2023, compared to 14% the previous year. Asia Pacific led with 43%, followed by Europe at 34% and North America at 13%. Europe saw growth in profitable digital banks, with institutions like bunq from the Netherlands, Aprila Bank from Norway, and UK-based banks such as Allica, Atom, Monzo and Zopa Bank reaching profitability. Despite this, the global break-even ratio remains below 25%, with many digital banks still in the early stages of building primary banking relationships. The time to reach full-year profitability has shortened, from an average of five to six years to just two years for leading second-generation digital banks. Platform-based digital banks typically achieve break-even even faster. WeBank, MYBank, KakaoBank, OakNorth Bank, UnionDigital Bank and Wio Bank are among those that have reached profitability quickly. On average, the top 100 digital banks offer 6.8 core products in 2025, up from 6.2 in 2024. While they are diversifying their offerings, interest income remains the primary revenue driver. The average loan-to-deposit ratio (LDR) slightly declined from 71% in FY2022 to 69% in FY2023, reflecting a more cautious lending approach due to credit risk and costs. 2024 and 2025 are expected to be pivotal years for more digital banks to reach break-even. Digital banks like Toss Bank, TymeBank, C6, Klarna and ZA Bank are expected to achieve full-year profitability. By the 2026 ranking, over 70% of the top 100 digital banks are projected to be profitable. WeBank, ING (Global), Ally Bank, Nubank, Wio Bank and TymeBank are the top digital banks in their regions Asia Pacific leads in the number of digital banks in the 2025 ranking, with 47 banks, followed by Europe with 30 and North America with 10. Latin and South America, and the Middle East and Africa contribute seven and six banks, respectively. Europe dominates in assets, holding around 53% of the total assets of the top 100 digital banks, driven by well-established banks. Despite Asia Pacific’s higher number of digital banks, its share of assets, deposits, loans and revenue is lower than Europe’s. North America holds 22% of revenue, slightly below Asia Pacific's 24%. The top 10 digital banks in Asia Pacific include four from China, three from South Korea, two from Japan, and one from Indonesia. Leading banks by market are ING (Australia), WeBank (China), Mox Bank (Hong Kong), Airtel Payments Bank (India), SeaBank (Indonesia), SBI Sumishin Net Bank (Japan), CIMB Bank (Philippines), ANEXT Bank (Singapore), KakaoBank (South Korea), O-Bank (Taiwan), LINE BK (Thailand) and Cake (Vietnam). MYBank and Su Merchants Bank rank second and third in China, both within the region's top five. SeaBank leads Southeast Asia, ranking 10th in Asia Pacific. After rebranding in FY2021, it achieved profitability in FY2022, with its pre-tax ROE rising from 1.5% to 5.3% in FY2023. The top 10 digital banks in Europe include three from the UK, three from the Netherlands, and one each from the Czech Republic, Germany, Russia and Sweden. ING leads, followed by T-Bank, Klarna and Revolut. Klarna excels in customer, coverage and funding dimensions, focusing on cost management through artificial intelligence (AI) investments. Revolut surpassed other UK digital banks in customer and coverage but lags in the balance sheet dimension. Its strong growth is driven by a diversified revenue model, market expansion and customer engagement, with its customer base growing from 26 million to 38 million in FY2023, a 95% revenue increase, and a pre-tax ROE of 32%. Among the 10 digital banks ranked in North America, two are from Canada, and the rest are based in the US. Ally Bank, Tangerine and Axos Bank are the top three. Ally and Axos excel in balance sheet and coverage, while Tangerine, a subsidiary of Scotiabank, outperforms in profitability. Ally's LDR was 89% in FY2023, while Tangerine's decreased from 24% in FY2021 to 21% in FY2023. Tangerine saw a 44% revenue increase, improved its CIR from 42% to 32%, and raised its pre-tax ROE from 25% to 34%. Ally's pre-tax profit dropped 46% due to reduced revenue and higher credit loss provisions. The top five digital banks in Latin and South America are from Brazil, with Nubank leading the region, followed by Banco Inter, C6, PicPay Bank and Neon. Despite Nubank’s larger customer base and profitability, Banco Inter and C6 outperformed in the balance sheet dimension with higher LDRs of 91% and 92% in FY2023. In the Middle East, Wio Bank leads, followed by Mashreq Neo and Liv. Launched in September 2022, Wio Bank reached a pre-tax profit of $0.5 million in 2023, making it one of the fastest digital banks to break even. In Africa, TymeBank remains the top digital bank, with Nigeria’s Carbon in second place. The acquisition of fintech loan company Retail Capital in FY2022 enhanced TymeBank’s small and medium-sized enterprise (SME) lending. In FY2023, its LDR increased to 48%, and revenue more than tripled, with TymeBank achieving its first month of profitability in December 2023. View the full World’s Best Digital Banks Ranking here View the World’s Best Digital Banks Ranking report here About the World’s Digital Banks Ranking Since 2022, TABInsights, the research arm of TAB Global, has ranked over 160 leading digital banks across 42 markets using a balanced scorecard that assesses capabilities in five key areas: customer, market/product coverage, profitability, asset and deposit growth, and funding. Instead of focusing on scale, the evaluation prioritises factors such as profitability, operational efficiency, funding access and the strength of the loan book and balance sheet. This year’s ranking introduces a new indicator, "funding as a percentage of total assets," alongside "funding value," to better reflect funding levels relative to total assets. The assessment includes digital banks with minimal physical outlets, where the physical presence is non-transactional and serves only digital customers. Digital banking services from commercial banks are included only if they operate as standalone entities or subsidiaries, with separate brands, onboarding processes and products tailored to specific user groups, distinct from mobile apps accessible to all customers of the parent bank. About TABInsights TABInsights is the global research arm of TAB Global, interacting with a wide spectrum of financial institutions across the Asia Pacific, the Middle East and African regions. TABInsights provides a range of custom and bespoke research for financial institutions in emerging and established markets to facilitate management decision-making process and guide business strategy. TABInsights provides strategic analysis and recommendations to institutions across all verticals including retail, transaction, risk and technology functions. Visit https://tabinsights.com/ for details. About TAB Global TAB Global owns and manages a number of world class digital content platforms namely, The Asian Banker, Wealth and Society, BankQuality.com, as well as learning platforms like The Banking Academy and The Skill Store. Incorporated in Singapore, it has offices in Beijing, Dubai and support offices in Kuala Lumpur and Manila, with plans to expand to Johannesburg, London, Zurich and New York. Visit https://www.tab.global/ for details. For further information, you may get in touch with: Mr. Foo Boon Ping President and Managing Editor TAB Global M: +65 9826 9470 [email protected]
