Author: Xu, Wenjie
Title: Why do neobanks prosper more in some countries than in others?
Advisors: Tong, Wilson (AF)
Jiang, Li (AF)
Degree: DFinTech
Year: 2022
Subject: Banks and banking
Internet banking
Hong Kong Polytechnic University -- Dissertations
Department: Faculty of Business
Pages: vi, 108 pages : color illustrations, map
Language: English
Abstract: The past several years have witnessed a dramatic rise in neobanks, also known as digital banking, as part of digitalization transformation. The COVID-19 pandemic has presented new challenges in the banking sphere and has accelerated the trend of switching from traditional banking to neobanks. However, the development of neobanks as an acceptable new form of banking has not been evenly distributed across different countries. In this study, using a comprehensive sample of 548 neobanks from 61 countries, I investigate the factors contributing to the unbalanced development at both the macro and firm levels. Furthermore, an overview of global neobank development, global ranking of neobanks, and the impacts of COVID-19 have been conducted. The marco level analysis is measured from neobank penetration success, customer acquisition success, fund raising success. The findings indicate that neobanks tend to prosper more in countries with bigger market sizes, more advanced information technology adaptation, greater bank concentration, and an inefficient institutional environment. At the firm-level, acquisition of funding has been used as a proxy for neobank prosperity. Prosperous neobanks are featured with product diversity, multicounty coverage, and funders with banking and entrepreneurial experience. In addition, the COVID-19 pandemic has also accelerated neobank's development. Those neobanks which are successful serve more IOS users, cater to low-income groups, offer multiple products, and cover overseas markets. The current study explores the determining factors for the development of neobanks while covering an exciting new topic in fintech. The results may provide valuable insight into the future of neobanks for regulators and investors.
Rights: All rights reserved
Access: restricted access

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