Factors affecting neobanks sustainability and development
Keywords:
Neobanks, neobanks growth, fintech, neobanking market, traditional banks
Abstract
Neobanks have managed to disturb the comfort of traditional banks in the market for financial products and services. The new digital-only banks are considered to be a serious competitor to the traditional, brick-and-mortar delivery of services. Nevertheless, aside from the swift growth, the sustainability and future growth of the neobanks' business models are yet to be determined. Accordingly, there is a need to identify some of the most important factors that will have a significant impact on the neobanks' ability to sustain their business operations.
Downloads
Download data is not yet available.
References
1. Saksonova S, Kuzmina-Merlino I. FinTech as financial innovation – the possibilities and problems of implementation, European Research Studies Journal, 20, 2017; pp. 961–973.
2. Vives X. Digital disruption in banking’, Annual Review of Financial Economics, 11, 2019; pp. 243– 272.
3. Hopkinson G, et al. How neobanks' business models challenge traditional banks. Young Graduate News, International Business Centre at Aalborg University, 2019.
4. Finnovate. Neo-Banks: Performance and New Ideas, Finnovate Research – Ideas for financial innovation, 2018, October.
5. Jungkiu C, et al. The rise of digital banking in southeast Asia, Boston Consulting Group, Commissioned by Google Cloud, 2020.
6. Wewege L, et al. Disruptions and digital banking trends’, Journal of Applied Finance & Banking, 10, 2020; pp. 15–56.
7. OECD. Digital Disruption in Banking and its Impact on Competition, 2020. http://www.oecd.org/daf/competition/digital-disruption-in-financial-markets.htm
8. Stegmeier C, Daniels L. The global growth of neobanks – A geographical analysis. Exton Research Report Neobanks 2021: Shifting from growth to profitability.
9. Valmonte G. Retail Banks: Why All is Not Lost in the Battle with NeoBanks. Monstarlab, 2020.
10. Filmer J. The threats and opportunities for neobanks in 2022, Publicis Sapient, 2022. https://www.publicissapient.com/industries/financial-services/neobanks-the-threats-and-opportunities-in-2022 11. Volenik A. 10 Biggest Digital Banks in 2022, TopMobileBanks.com. 2022. available at: https://topmobilebanks.com/blog/biggest-digital-banks-2021/ 12. Ahuja S. Opportunities and Challenges for Neobanks Are Large in the U.S. Gerson Lehrman Group INSIGHTS/ARTICLES, 2021.
13. Green R. US neobank Moven is closing its consumer bank after funding fell through due to the coronavirus, Business Insider, 2020. available at: https://www.businessinsider.com/us-neobank-moven-shutters-as-coronavirus-dries-up-funding-2020-3
14. Eyers J. Xinja collapse a ‘successful failure’: Byres. Australian Financial Review, 2021. available at: https://www.afr.com/companies/financial-services/xinja-s-collapse-a-successful-failure-byres-20210330-p57f7x 15. Lake R, Foreman D. Simple Is Closing: What To Expect And What To Do Now, Forbes, 2021. available at: https://www.forbes.com/advisor/banking/simple-is-closing-what-to-expect-and-what-to-do-now/
16. Woodford I. The short story of RBS’ failed digital bank Bó. Sifted, 2020. available at: https://sifted.eu/articles/rbs-bo-close-decline/ 17. Daniel E. Digital bank Bo closes: Inside RBS’s failed challenge to the challenger banks. Verdict, 2020. available at: https://www.verdict.co.uk/bo-digital-bank-rbs-natwest/
18. Lukonga I. Fintech, Inclusive Growth and Cyber Risks: Focus on the MENAP and CCA Regions. IMF Working Paper. WP/18/201, 2018.
19. Arslanian H, Fischer F. The rise of FinTech’, in The future of finance: the impact of FinTech, AI, and crypto on financial services, Cham, Germany: Springer International Publishing, 2019.
20. Caplain J, at. Al. Future of Retail Banking. *KPMG Connected Enterprise for Retail Banking, 2020.
21. EIU. Financial and Professional Services: Trade challenges and opportunities post-pandemic. The Economist Intelligence Unit Report published by The UK's Department for International Trade, 2021.
22. Melnychenko S, et al. Dominant ideas of financial technologies in digital banking’, Baltic Journal of Economic Studies, 6, 2020, pp. 92–99.
23. Clerc L, et al. Neobanks seeking profitability. Neobanks: stakeholders seeking profitability. Autorité de Contrôle Prudentiel et de Résolution Banque de France, No 113, 2020.
24. Silva D, Ward P. Neobanks" — Who Will Win? LEK. Consulting / Executive Insights. Volume XVIII, Issue 28, 2016.
25. Dehaies S, Papadacci-Stephanopoli E. Panorama of the French neobanks: 2019: year of adaptation of the banking services to the new clients’ consumption patterns. KPMG, 2019.
26. Adamczyk A. Big banks are slashing overdraft fees—here’s how to avoid them altogether, CNBC – Make it, 2022. available at:
https://www.cnbc.com/2022/01/19/bank-of-america-wells-fargo-announce-changes-to-overdraft-fees.html
27. Valero S, et. al. Future banking scenarios. Evolution of digitalisation in Spanish banking’, Journal of Business, Accounting, and Finance Perspectives, 2, 2020, pp. 1–25.
28. AFI Policy framework on the regulation, licensing and supervision of digital banks, Alliance for Financial Inclusion, 2021. available at: https://www.afi-global.org/wp-content/uploads/2021/11/DFSWG-framework_FINAL.pdf
29. Jones R, Ozcan P. Rise of BigTech platforms in banking. Industry Paper 1, Said Business School, 2021.
30. McKee J. Financial fabric: The infrastructure for embedded finance. 451 Research, 2020. September.
31. BBVA Neobanks: creating a digital bank from scratch. Digital Economy Outlook. BBVA Research Department, 2016.
32. Thompson C. Be safe: Cybercrime in the financial services industry. Accenture, 2019. url:https://financialservicesblog.accenture.com/be-safe-cybercrime-in-the-financial-services-industry
33. Pazarbasioglu C, et. al. Digital Financial Services. World Bank Group, 2020, April.
34. Lorezen J. Neobanking, and then what? Evolutionary perspective of neobanking. FUTUREBANK, 2019.
35. Shettar M.R. Neo Bank: A new landscape. Journal of Xi'an University of Architecture & Technology Volume XII, Issue III, Issn No: 1006-7930, 2020, pp. 3843–3847.
2. Vives X. Digital disruption in banking’, Annual Review of Financial Economics, 11, 2019; pp. 243– 272.
3. Hopkinson G, et al. How neobanks' business models challenge traditional banks. Young Graduate News, International Business Centre at Aalborg University, 2019.
4. Finnovate. Neo-Banks: Performance and New Ideas, Finnovate Research – Ideas for financial innovation, 2018, October.
5. Jungkiu C, et al. The rise of digital banking in southeast Asia, Boston Consulting Group, Commissioned by Google Cloud, 2020.
6. Wewege L, et al. Disruptions and digital banking trends’, Journal of Applied Finance & Banking, 10, 2020; pp. 15–56.
7. OECD. Digital Disruption in Banking and its Impact on Competition, 2020. http://www.oecd.org/daf/competition/digital-disruption-in-financial-markets.htm
8. Stegmeier C, Daniels L. The global growth of neobanks – A geographical analysis. Exton Research Report Neobanks 2021: Shifting from growth to profitability.
9. Valmonte G. Retail Banks: Why All is Not Lost in the Battle with NeoBanks. Monstarlab, 2020.
10. Filmer J. The threats and opportunities for neobanks in 2022, Publicis Sapient, 2022. https://www.publicissapient.com/industries/financial-services/neobanks-the-threats-and-opportunities-in-2022 11. Volenik A. 10 Biggest Digital Banks in 2022, TopMobileBanks.com. 2022. available at: https://topmobilebanks.com/blog/biggest-digital-banks-2021/ 12. Ahuja S. Opportunities and Challenges for Neobanks Are Large in the U.S. Gerson Lehrman Group INSIGHTS/ARTICLES, 2021.
13. Green R. US neobank Moven is closing its consumer bank after funding fell through due to the coronavirus, Business Insider, 2020. available at: https://www.businessinsider.com/us-neobank-moven-shutters-as-coronavirus-dries-up-funding-2020-3
14. Eyers J. Xinja collapse a ‘successful failure’: Byres. Australian Financial Review, 2021. available at: https://www.afr.com/companies/financial-services/xinja-s-collapse-a-successful-failure-byres-20210330-p57f7x 15. Lake R, Foreman D. Simple Is Closing: What To Expect And What To Do Now, Forbes, 2021. available at: https://www.forbes.com/advisor/banking/simple-is-closing-what-to-expect-and-what-to-do-now/
16. Woodford I. The short story of RBS’ failed digital bank Bó. Sifted, 2020. available at: https://sifted.eu/articles/rbs-bo-close-decline/ 17. Daniel E. Digital bank Bo closes: Inside RBS’s failed challenge to the challenger banks. Verdict, 2020. available at: https://www.verdict.co.uk/bo-digital-bank-rbs-natwest/
18. Lukonga I. Fintech, Inclusive Growth and Cyber Risks: Focus on the MENAP and CCA Regions. IMF Working Paper. WP/18/201, 2018.
19. Arslanian H, Fischer F. The rise of FinTech’, in The future of finance: the impact of FinTech, AI, and crypto on financial services, Cham, Germany: Springer International Publishing, 2019.
20. Caplain J, at. Al. Future of Retail Banking. *KPMG Connected Enterprise for Retail Banking, 2020.
21. EIU. Financial and Professional Services: Trade challenges and opportunities post-pandemic. The Economist Intelligence Unit Report published by The UK's Department for International Trade, 2021.
22. Melnychenko S, et al. Dominant ideas of financial technologies in digital banking’, Baltic Journal of Economic Studies, 6, 2020, pp. 92–99.
23. Clerc L, et al. Neobanks seeking profitability. Neobanks: stakeholders seeking profitability. Autorité de Contrôle Prudentiel et de Résolution Banque de France, No 113, 2020.
24. Silva D, Ward P. Neobanks" — Who Will Win? LEK. Consulting / Executive Insights. Volume XVIII, Issue 28, 2016.
25. Dehaies S, Papadacci-Stephanopoli E. Panorama of the French neobanks: 2019: year of adaptation of the banking services to the new clients’ consumption patterns. KPMG, 2019.
26. Adamczyk A. Big banks are slashing overdraft fees—here’s how to avoid them altogether, CNBC – Make it, 2022. available at:
https://www.cnbc.com/2022/01/19/bank-of-america-wells-fargo-announce-changes-to-overdraft-fees.html
27. Valero S, et. al. Future banking scenarios. Evolution of digitalisation in Spanish banking’, Journal of Business, Accounting, and Finance Perspectives, 2, 2020, pp. 1–25.
28. AFI Policy framework on the regulation, licensing and supervision of digital banks, Alliance for Financial Inclusion, 2021. available at: https://www.afi-global.org/wp-content/uploads/2021/11/DFSWG-framework_FINAL.pdf
29. Jones R, Ozcan P. Rise of BigTech platforms in banking. Industry Paper 1, Said Business School, 2021.
30. McKee J. Financial fabric: The infrastructure for embedded finance. 451 Research, 2020. September.
31. BBVA Neobanks: creating a digital bank from scratch. Digital Economy Outlook. BBVA Research Department, 2016.
32. Thompson C. Be safe: Cybercrime in the financial services industry. Accenture, 2019. url:https://financialservicesblog.accenture.com/be-safe-cybercrime-in-the-financial-services-industry
33. Pazarbasioglu C, et. al. Digital Financial Services. World Bank Group, 2020, April.
34. Lorezen J. Neobanking, and then what? Evolutionary perspective of neobanking. FUTUREBANK, 2019.
35. Shettar M.R. Neo Bank: A new landscape. Journal of Xi'an University of Architecture & Technology Volume XII, Issue III, Issn No: 1006-7930, 2020, pp. 3843–3847.
Published
2022-02-15
Section
Banking and Finance
