Key factors of neobanking's occurence
DOI:
https://doi.org/10.32015/JIBM.2023.15.1.1Keywords:
neobanks, fintech, banking, factors of occurenceAbstract
Neobanks, exclusively digital fintech-based banks are swiftly becoming a significant player in the financial markets. They bloomed rapidly and continue to develop swiftly, while there is little known about determinants of their establishment and performance. Purpose of this research is to find key factors determining occurrence of neobanks in selected 43 countries. We use random-effects model to analyse 13 financial, economic, and cultural–geographical factors. We find number of ATMs, S&P500 and rural population to be significant factors in occurrence of neobanks in selected countries. Our study presents first insight in factors of demand for neobanks and thus, first step in understanding demand for this new banking business model.
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