Digital Disruption in Banking: A Comparative Analysis of Neo Banks and Traditional Institutions
DOI:
https://doi.org/10.53983/ijmds.v13n3.001Keywords:
Neo banks, traditional banking systems, business models, digital capabilities, comparative analysis, financial innovationAbstract
Purpose- This research aims to conduct a comparative analysis investigating the influence of neo-banks on traditional banking systems. It seeks to bridge the gap in understanding the dynamic changes occurring in the banking sector, particularly with the emergence of neo-banks, by analyzing existing literature and examining potential consequences for conventional banking models. Methodology- To accomplish the research objective, a methodical approach is employed, combining qualitative examination of current literature with quantitative data collection. The study focuses on key variables such as transaction value and user trends to provide a comprehensive understanding of the dynamics between neo banks and traditional banks. Findings- The analysis highlights significant disparities in the business models of neo banks and traditional banks, along with the profound impacts of technical advancements implemented by neo banks. Additionally, the study evaluates the strategic reactions of traditional banks to the rise of neo banking, including efforts to modify business models and enhance digital capabilities. Conclusion- This research enhances comprehension of the dynamic interplay between neo banks and traditional banks, offering insights into the challenges and opportunities facing the banking sector in the digital era.
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