Descriptive Approach of Neo-Banking System: Conception, Challenges and Global Practices
Abstract
The massive growth in demand for new technologies and applications in the banking sector has consequently heightened consumer concern about Neo-banks systems. A neo bank is a type of direct bank that operates exclusively using online banking without traditional physical branch networks that challenge traditional banks. This article primarily attempts to review the literature on Neo-banking and its practices. It has also highlighted the main initiatives, benefits, challenges, of Neo-banks systems globally. Furthermore, this study aimed to provide a theoretical discussion of Neo-banking by extending the TAM Model by security and trust to determine the identify the factors affecting users’ perception. It is found that there green banking is essential in the current global digital economy and the advances of technology and artificial intelligence. Therefore, considerable initiatives have been taken in the world in this regard by the banks and governments, but Neo-banks systems is still ay primary stage due to the low adoption by the consumer
References
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Bouteraa, M., Tamma, E., Aichouche, M. E. H., Achour, S., Lada, S., Ansar, R., Fook, L. M., & Chekima, B. (2023). International Joint Ventures’ Knowledge Acquisition: Critical Literature Review. Sustainability, 15(8), 6364. https://doi.org/10.3390/su15086364
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Chekima, B., Bouteraa, M., Ansar, R., Lada, S., Fook, L. M., Tamma, E., Abdul Adis, A.-A., & Chekima, K. (2023). Determinants of Organic Food Consumption in Narrowing the Green Gap. Sustainability, 15(11), 8554. https://doi.org/10.3390/su15118554
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David, G., Elena, K., & W. Straub, D. (2003). Trust and TAM in Online Shopping: An Integrated Model. Management Information Systems Research Center, 27(1), 51–90.
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Glushchenko, M., Hodasevich, N., & Kaufman, N. (2019). Innovative financial technologies as a factor of competitiveness in the banking. SHS Web of Conferences, 69, 00043. https://doi.org/10.1051/shsconf/20196900043
Gorodianska, L. V., Nosenko, T., & Vember, V. (2019). Neobanks operations and security features. 2019 IEEE International Scientific-Practical Conference: Problems of Infocommunications Science and Technology, PIC S and T 2019 - Proceedings, 839–842. https://doi.org/10.1109/PICST47496.2019.9061268
Instnt. (2022). 5 Challenges and Opportunities for Neobanks. https://www.instnt.org/ourblog/5-challenges-and-opportunities-for-neobanks
Juliana, N., Lada, S., Chekima, B., & Abdul Adis, A.-A. (2022). Exploring Determinants Shaping Recycling Behavior Using an Extended Theory of Planned Behavior Model: An Empirical Study of Households in Sabah, Malaysia. Sustainability, 14(8), 4628. https://doi.org/10.3390/su14084628
Khayrallah, A., Radia, N., Hickey, J., Singh, J., & Xu, V. (2015). Technology & Banking. Applied Innovation Review, 1, 23–38.
Knewtson S., H., & Rosenbaum, Z. A. (2020). Toward understanding FinTech and its industry. Managerial Finance, 46(8), 1043–1060. https://doi.org/10.1108/MF-01-2020-0024
Louis, J. E., Jang, B., Korea, S., & Korea, S. (2022). A COMPARATIVE LEGAL STUDY ON NEOBANK BETWEEN SOUTH. Journal of Law and Policy Transformation, 7(1), 109–123.
Mahadevan PV. (2022). Neobank Vs Digital Bank: Everything you need to know about the future of banking. https://blog.accubits.com/neobank-vs-digital-bank-everything-you-need-to-know-about-how-it-differs/#:~:text=your fintech product-,How is Neobanks different from digital banks%3F,whereas Neobanks are exclusively online.
Martinčević, I., Črnjević, S., & Klopotan, I. (2020). Fintech Revolution in the Financial Industry. Proceedings of the ENTRENOVA-ENTerprise REsearch InNOVAtion Conference (Online), 6(1), 563–571.
Mashhour, A. S. (2015). Community Perception of the Security and Acceptance of Mobile Banking Services in Bahrain: An Empirical Study. International Journal of Advanced Computer Science and Applications, 6(9), 46–54. https://doi.org/10.14569/ijacsa.2015.060906
Meijer, K. (2021). Customer Acceptance of Neobanks: What Role Does National Culture Play?
Mouakket, S. (2009). Investigating the Factors Influencing Customers ’ Adoption of Online Banking in the United Arab Emirates. Journal of International Technology and Information Management, 18(3), 361–384.
Oliver Wyman. (2019). Consumers demand better and cheaper digital offers from established banks. https://www.oliverwyman.de/media-center/2019/sep/financial-needs-neobanks.html
R. Hinkin, T. (1995). A Review of Scale Development Practices in the Study of Organization. Journal of Management, 21(5), 967–988. https://doi.org/10.1111/j.1745-4603.1989.tb00456.x
Riemann, J. C. (2021). An examination of critical factors influencing the future usage intention of innovative digital financial solutions for investment activities: Consumers’ attitude towards neobanks in germany.
Rup, B. K., Gochhayat, J., & Samanta, S. (2018). Role of biological sex and gender roles on perceived brand personality. International Journal of Knowledge-Based and Intelligent Engineering Systems, 22(4), 231–237. https://doi.org/10.3233/KES-180387
Shabu, K., & Ramankutty, V. (2022). Neobanking in India: Opportunities and Challenges from Customer Perspective. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4037656
Shvets, N., Dalgic, K., & Dalevska, N. (2021). Innovative approaches to the assessment of banking competition in ukraine in terms of digital transformation. Marketing and Management of Innovations, 14(1), 307–307. https://doi.org/10.1515/mt-1999-417-807
Society Bocconi Students Fintech. (2020). Neobank trends: EU vs Asia. https://bsfs.medium.com/market-landscape-two-different-countries-from-the-same-perspective-the-present-and-the-future-of-1cc65d5d675
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Stegmeier, C., & Verburg, M. (2022). The Future of Neobanking How can Neobanks unlock profitable growth? (Issue May).
The Economic Times. (2022). Explained: Neobanks, the next evolution of banking. https://economictimes.indiatimes.com/tech/trendspotting/explained-neobanks-the-next-evolution-of-banking/articleshow/86836735.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst.
Tosun, P. (2021). Brand Trust for Digital-Only Bank Brands: Consumer Insights From an Emerging Market. Atlas International Congress on Social Science 7, 75–85.
Valero, S., Climent, F., & Esteban, R. (2020). Future Banking Scenarios. Evolution of Digitalisation in Spanish Banking. Journal of Business Accounting and Finance Perspectives, 2(2), 1. https://doi.org/10.35995/jbafp2020013
Walden, S., & Strohm, M. (2021). What Is A Neobank? https://www.forbes.com/advisor/banking/what-is-a-neobank/
Benitezab, J., Jörg, H., Ana, C., & Florian, S. (2020). How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research. Information & Management, 57(2). https://doi.org/https://doi.org/10.1016/j.im.2019.05.003
Borges, L., Perun, M., & Daradkeh, Y. (2020). Digital Transformation and Customers Services: the Banking Revolution. International Journal of Open Information Technologies, 8(7), 124–128.
Bouteraa, M. (2020). Descriptive Approach of Green Banking in the United Arab Emirates (UAE). IBMRD’s Journal of Management & Research, 9(1), 1–9. https://doi.org/10.17697/ibmrd/2020/v9i1/152324
Bouteraa, M., Chekima, B., Lajuni, N., & Anwar, A. (2023). Understanding Consumers’ Barriers to Using FinTech Services in the United Arab Emirates: Mixed-Methods Research Approach. Sustainability, 15(4), 2931. https://doi.org/10.3390/su15042931
Bouteraa, M., Hisham, R. R. I. R., & Zainol, Z. (2021). Exploring Determinants of Customers’ Intention To Adopt Green Banking: Qualitative Investigation. Journal of Sustainability Science and Management, 16(3), 187–203. https://doi.org/10.46754/jssm.2021.04.014
Bouteraa, M., Raja Hisham, R. R. I., & Zainol, Z. (2020a). Green Banking Practices from Islamic and Western Perspectives. International Journal of Business, Economics and Law, 21(5), 1–11.
Bouteraa, M., Raja Hisham, R. R. I., & Zainol, Z. (2020b). Islamic Banks Customers ’ Intention to Adopt Green Banking : Extension of UTAUT Model. International Journal of Business and Technology Management, 2(1), 121–136. http://myjms.moe.gov.my/index.php/ijbtm
Bouteraa, M., Raja Hisham, R. R. I., & Zainol, Z. (2022). Bank Customer Green Banking Technology Adoption (pp. 64–102). IGI Global. https://doi.org/10.4018/978-1-6684-4610-2.ch004
Bouteraa, M., Raja Rizal Iskandar, R. H., & Zairani, Z. (2022). Challenges affecting bank consumers’ intention to adopt green banking technology in the UAE: a UTAUT-based mixed-methods approach. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-02-2022-0039
Bouteraa, M., Tamma, E., Aichouche, M. E. H., Achour, S., Lada, S., Ansar, R., Fook, L. M., & Chekima, B. (2023). International Joint Ventures’ Knowledge Acquisition: Critical Literature Review. Sustainability, 15(8), 6364. https://doi.org/10.3390/su15086364
Chekima, B. (2019). Consumer Values and Green Products Consumption in Malaysia. In Green Business (pp. 206–231). IGI Global. https://doi.org/10.4018/978-1-5225-7915-1.ch011
Chekima, B., Bouteraa, M., Ansar, R., Lada, S., Fook, L. M., Tamma, E., Abdul Adis, A.-A., & Chekima, K. (2023). Determinants of Organic Food Consumption in Narrowing the Green Gap. Sustainability, 15(11), 8554. https://doi.org/10.3390/su15118554
Chekima, B., & Chekima, K. (2019). The Impact of Human Values and Knowledge on Green Products Purchase Intention (pp. 266–283). https://doi.org/10.4018/978-1-5225-7906-9.ch012
Crassula. (2019). Neo Banks: Explaining the New Term in Digital Banking. https://crassula.medium.com/neo-banks-explaining-the-new-term-in-digital-banking-72877da38f33
David, G., Elena, K., & W. Straub, D. (2003). Trust and TAM in Online Shopping: An Integrated Model. Management Information Systems Research Center, 27(1), 51–90.
Davis, F. . (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly: Management Information Systems, 13(3), 319–339. https://doi.org/10.2307/249008
Fintech Futures. (2021). Global Neobanking Market Growth Outlook to 2026: Rising Adoption of Digital Tools Set to Increase Adoption Rates of Internet-Only Banks. Globe Newswire. https://www.fintechfutures.com/techwire/global-neobanking-market-growth-outlook-to-2026-rising-adoption-of-digital-tools-set-to-increase-adoption-rates-of-internet-only-banks/
Garbarino, S., & Holland, J. (2009). Quantitative and Qualitative Methods in Impact Evaluation and Measuring Results Issues Paper (Issue March).
Glushchenko, M., Hodasevich, N., & Kaufman, N. (2019). Innovative financial technologies as a factor of competitiveness in the banking. SHS Web of Conferences, 69, 00043. https://doi.org/10.1051/shsconf/20196900043
Gorodianska, L. V., Nosenko, T., & Vember, V. (2019). Neobanks operations and security features. 2019 IEEE International Scientific-Practical Conference: Problems of Infocommunications Science and Technology, PIC S and T 2019 - Proceedings, 839–842. https://doi.org/10.1109/PICST47496.2019.9061268
Instnt. (2022). 5 Challenges and Opportunities for Neobanks. https://www.instnt.org/ourblog/5-challenges-and-opportunities-for-neobanks
Juliana, N., Lada, S., Chekima, B., & Abdul Adis, A.-A. (2022). Exploring Determinants Shaping Recycling Behavior Using an Extended Theory of Planned Behavior Model: An Empirical Study of Households in Sabah, Malaysia. Sustainability, 14(8), 4628. https://doi.org/10.3390/su14084628
Khayrallah, A., Radia, N., Hickey, J., Singh, J., & Xu, V. (2015). Technology & Banking. Applied Innovation Review, 1, 23–38.
Knewtson S., H., & Rosenbaum, Z. A. (2020). Toward understanding FinTech and its industry. Managerial Finance, 46(8), 1043–1060. https://doi.org/10.1108/MF-01-2020-0024
Louis, J. E., Jang, B., Korea, S., & Korea, S. (2022). A COMPARATIVE LEGAL STUDY ON NEOBANK BETWEEN SOUTH. Journal of Law and Policy Transformation, 7(1), 109–123.
Mahadevan PV. (2022). Neobank Vs Digital Bank: Everything you need to know about the future of banking. https://blog.accubits.com/neobank-vs-digital-bank-everything-you-need-to-know-about-how-it-differs/#:~:text=your fintech product-,How is Neobanks different from digital banks%3F,whereas Neobanks are exclusively online.
Martinčević, I., Črnjević, S., & Klopotan, I. (2020). Fintech Revolution in the Financial Industry. Proceedings of the ENTRENOVA-ENTerprise REsearch InNOVAtion Conference (Online), 6(1), 563–571.
Mashhour, A. S. (2015). Community Perception of the Security and Acceptance of Mobile Banking Services in Bahrain: An Empirical Study. International Journal of Advanced Computer Science and Applications, 6(9), 46–54. https://doi.org/10.14569/ijacsa.2015.060906
Meijer, K. (2021). Customer Acceptance of Neobanks: What Role Does National Culture Play?
Mouakket, S. (2009). Investigating the Factors Influencing Customers ’ Adoption of Online Banking in the United Arab Emirates. Journal of International Technology and Information Management, 18(3), 361–384.
Oliver Wyman. (2019). Consumers demand better and cheaper digital offers from established banks. https://www.oliverwyman.de/media-center/2019/sep/financial-needs-neobanks.html
R. Hinkin, T. (1995). A Review of Scale Development Practices in the Study of Organization. Journal of Management, 21(5), 967–988. https://doi.org/10.1111/j.1745-4603.1989.tb00456.x
Riemann, J. C. (2021). An examination of critical factors influencing the future usage intention of innovative digital financial solutions for investment activities: Consumers’ attitude towards neobanks in germany.
Rup, B. K., Gochhayat, J., & Samanta, S. (2018). Role of biological sex and gender roles on perceived brand personality. International Journal of Knowledge-Based and Intelligent Engineering Systems, 22(4), 231–237. https://doi.org/10.3233/KES-180387
Shabu, K., & Ramankutty, V. (2022). Neobanking in India: Opportunities and Challenges from Customer Perspective. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4037656
Shvets, N., Dalgic, K., & Dalevska, N. (2021). Innovative approaches to the assessment of banking competition in ukraine in terms of digital transformation. Marketing and Management of Innovations, 14(1), 307–307. https://doi.org/10.1515/mt-1999-417-807
Society Bocconi Students Fintech. (2020). Neobank trends: EU vs Asia. https://bsfs.medium.com/market-landscape-two-different-countries-from-the-same-perspective-the-present-and-the-future-of-1cc65d5d675
Sprout Asia. (2021). How is a Neobank Different from a Traditional Bank? https://www.sproutasia.com/blog/how-is-a-neobank-different-from-a-traditional-bank
Stegmeier, C., & Verburg, M. (2022). The Future of Neobanking How can Neobanks unlock profitable growth? (Issue May).
The Economic Times. (2022). Explained: Neobanks, the next evolution of banking. https://economictimes.indiatimes.com/tech/trendspotting/explained-neobanks-the-next-evolution-of-banking/articleshow/86836735.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst.
Tosun, P. (2021). Brand Trust for Digital-Only Bank Brands: Consumer Insights From an Emerging Market. Atlas International Congress on Social Science 7, 75–85.
Valero, S., Climent, F., & Esteban, R. (2020). Future Banking Scenarios. Evolution of Digitalisation in Spanish Banking. Journal of Business Accounting and Finance Perspectives, 2(2), 1. https://doi.org/10.35995/jbafp2020013
Walden, S., & Strohm, M. (2021). What Is A Neobank? https://www.forbes.com/advisor/banking/what-is-a-neobank/
Published
2023-06-30
How to Cite
ZIOUACHE, Alaeddine; BOUTERAA, Mohamed.
Descriptive Approach of Neo-Banking System: Conception, Challenges and Global Practices.
International Journal of Business and Technology Management, [S.l.], v. 5, n. 2, p. 194-204, june 2023.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/22496>. Date accessed: 03 dec. 2023.
Section
Articles
