Purpose This study aims to integrate Delone and McLean’s information system success (DMISS) model with the innovation resistance model to evaluate the relationship between behavioural intention to ...use (BIU) and innovation resistance in the context of neo-banking. The primary objective of this study is to identify the drivers of neo-banking adoption and the barriers to its adoption and incorporate constructs such as e-trust (ETR) and personal innovativeness (PIV) to provide a more comprehensive understanding of the factors influencing neo-banking adoption. Design/methodology/approach A structured survey-based questionnaire was used to gather data from a diverse sample population in India. The Partial Least Squares Structural Equation Modeling (PLS-SEM) model was employed to further examine the adoption of neobanking services and users' intention to use neobanking services. Findings This study reveals a significant correlation between BIU and the uptake of neobanking services, demonstrating the value of consumers' readiness to embrace these offerings. However, resistance to usage has emerged as a major obstacle for consumers concerned about data security, technology reluctance and perceived risks associated with digital-only neobanks. Research limitations/implications Analysing the driving and restraining factors will provide substantial information on the formation of consumers' decision-making processes in the Indian banking industry, which is undergoing rapid digital transformation. This information is of great importance to scholars, practitioners and policymakers, as it highlights the factors that may facilitate or impede the adoption of neobanking in India. The outcomes of this analysis will be of particular interest to researchers, experts and stakeholders in the field as they will provide valuable insights into the dynamics of consumer behaviour in the Indian banking sector. Originality/value This study represents an initial effort to examine BIUs and usage resistance within the rapidly developing neobanking sector in India. The findings of this study build on the existing research in this area and contribute to the ongoing discussion on the adoption of neo-banking.
The emergence of Open Banking and the COVID-19 pandemic have caused disruptions in the global economy and the way consumers use financial-banking services. As consumers avoided visiting branches, ...banks and other financial service providers, who were hesitant to change their traditional models, had to embrace technology and other changes to stay competitive and meet customer demands. For numerous financial organizations, the current situation has led to a hastening of their digitization efforts both internally and externally. However, for some, it has exposed shortcomings in fulfilling the needs of their customers. As online banking has transitioned from a “nice-to-have” feature to an essential way of life, many new banks have taken advantage of the technological gap. // With online banking evolving from a "convenient option" to a crucial necessity, numerous emerging banks have capitalized on the gap in technology. Therefore, PSD2 has presented a chance for traditional banks to expand their market share and offer their products to customers who were previously unreachable. In recent times, Open Banking has emerged as an emblem of the financial sector's digital and transformative progress. The fundamental principles of the Internet age aim to empower consumers with control over their financial services and lower the obstacles to accessing them. Digital and neo banks represent a new breed of banks that operate solely online with the primary goal of making financial transactions easier for consumers. They offer round-the-clock availability and enable quick and effortless execution of all kinds of operations, aligning perfectly with the current trend towards digitalization. The digital transformation of banks necessitates a fundamental shift in their organizational culture, beginning with the understanding that banks must continuously evolve to meet customer expectations for comprehensive, seamless, and agile services. This article emphasizes the impact of current economic conditions on the actions of financial-banking service consumers and the development of financial intermediaries
The purpose of the article/hypothesis: Is to identify the peculiarities of Fintech startups activities, to track trends and perspectives of interaction between classic banks and Fintech companies, as ...well as to research the activities of neobanks and formulate proposals for improving the Fintech ecosystem in Ukraine with the aim of providing quality digital financial services to various categories of consumers. Methodology: Methods of statistical analysis, analogy, synthesis and theoretical generalization were used when researching the materials of specialized analytical agencies, official websites of foreign and domestic banks, state financial strategies and scientific literature. Results of the research: The active growth of a number of Fintech startups in the world and in Ukraine forms a positive dynamic of the digital transformation of the banking sector. The cooperation between banks and Fintechs allows the use new innovative products in banking, such as artificial intelligence, robo-consultation, blockchain, cryptocurrencies, the Internet of Things, virtual and augmented reality. For the further digital transformation of banking in Ukraine the financial market participants must implement international open banking standards and tools for remote identification and verification of clients, actively introduce artificial intelligence and machine learning tools into finance, and develop a Fintech ecosystem.
Purpose This study aims to explore how the shift from traditional to digital banking transforms the nature of trust between banks and their younger clients (aged 18–35) from the perspective of bank ...employees. Design/methodology/approach Qualitative semi-structured interviews with representatives of Ukrainian classical banks and neobanks were conducted. The interviews were analysed using the theoretical approach of institution-based and social network-based trust to identify the key distinctions between the nature of trust in traditional and digital banking. Findings The employees of the banks reported that digitalization processes have helped to mitigate trust issues; as a result, their banks have not experienced any difficulties in this regard among young people. Furthermore, social networks, particularly social approval, were found to be significant factors for establishing trust in digital banking among young people. Research limitations/implications The results of this study could assist bank managers in adapting their strategies for cultivating trust among younger clients and aiding international law regulators and government institutions in preventing unintended circumstances in financial services. These contributions were shaped by the study’s limitations, including its focus on only two concepts of trust building: institution-based and social network-based, as well as its specific Ukrainian context. Originality/value This study highlights social approval as a valuable constituent of the trust-building process that influences trust in institutions. Furthermore, while gaining social approval – particularly through digital platforms – can promote trust-building among young people, this “easy way” may have negative societal consequences by endorsing unscrupulous institutions.
The banking paradigm is being transformed because users have changed. They need a new model of service: timely, efficient, profitable and effortless. Banks should be prepared to disclose their data ...to partners (fintech companies, IT developers, retail chains) using standardized and open application programming interfaces (API). They must also be prepared to connect to new industry platforms, where they act as participants rather than owners of experience and customer relationships. Such a comprehensive transformation takes long time and is determined by the bank’s risk appetite and readiness to digital business. There are classification and main relationships between the terms that denote promising areas of modern banking (Lifestyle-banking, Behavioral banking, Bank-as-a-Service, Open banking, Omnichannel banking, White label banking, Neobanks). It is determined that the concepts of Lifestyle-banking and Behavioral banking are close, but the latter is aimed at the formation of rational financial behavior, which creates a conflict of interests, as financial culture begins to excite the classic bank only when large loan arrears. Omnichannel is an additional characteristic of Lifestyle and Behavioral banks, and all of them are impossible without Open banking. The substructure of Open Banking is the concepts of BaaS and White label banking. To speed up interaction between different stakeholders, Open Banking is based on an API that traditional banks have avoided for security reasons. PSD2 has been introduced as the legal basis for opening bank data of customers with their permission to authorized third-party suppliers. Trends in rethinking banking: digitization of all elements of the banking business; focus on customer needs; cooperation with fintech companies to stimulate innovations; creation of a standardized structure for exchange of banking data through API; abstraction from the peculiarities of each banking system; development of intuitive banking operations; transition to component architectures or modular structures to facilitate and accelerate the development of new services and channels; increasing the level of consumer protection. A comparative characterization of what the banking revolution can give to society as a whole and to each client individually, and the risks that we must be aware of, is given. It is determined what modern banks need to do to increase their competitiveness: review their strategic goals and place more emphasis on consumer experience; use the accumulated analytics for individualized customer service, which will increase profitability; develop a clear and flexible management structure that easily adapts to the changing business environment, provides coherence, adaptability, speed and reliability throughout the ecosystem to turn business components into interchangeable and reusable assembly units of processes or services; identify key indicators, regularly measure them and compile reports, structuring business relationships.
El presente trabajo analiza la existencia de regulaciones para las fintech, neobancos y bigtech en el Ecuador; el objetivo es evidenciar la presencia de estas empresas en el país y como se encuentra ...su regulación. La metodología del estudio es cualitativa y documental bibliográfico. Como resultado, se encontró que en el Ecuador no existe una ley específica para ninguna de las tres figuras antes mencionadas, pero, en la práctica, existen 32 fintech legalmente inscritas en el Sistema de Rentas Internas del Ecuador. Además, se manejaron más de USD 5 millones y treinta mil transacciones durante 2019, considerando solo las reportadas a la Superintendencia de Bancos. Como conclusión se indica que las fintech, neobancos y bigtech dinamizan la economía ecuatoriana y es de vital importancia crear una regulación; para lo cual, se recomienda tener en cuenta tres ejes: 1. conformación y autorización; 2. operación y control; y 3. sanciones y delitos. Se recomienda que estas empresas cuenten con un Oficial de Seguridad de la Información (OSI), pilar fundamental para evitar que se materialicen los riesgos de seguridad de la información.
The rapid digitalization of all spheres of life is the main trend of recent years. The banking sector was one of the first to actively respond to changes in the global economic system and is now one ...of the leaders in the process of financial services digitalization. The article is devoted to the study of the digitalization processes of the banking sector of Ukraine at the present stage. Initially, the article highlights the main prerequisites for digital transformation of the domestic banking sector and the most dynamic trends in current process, which have become particularly active as a result of the COVID-19 pandemic. It is noted that Ukraine is actively developing digital instruments in banking according to world rankings, including the level of digital competitiveness and the level of contactless payments, and over the past five years there has been a steady improvement in Ukraine's position. First of all, the basic advantages and benefits of traditional banking institutions transition to digital sphere for both banks and their customers are summarized. Also, the number of banking branchs in Ukraine during 2016-2021 is studied and the main patterns in their dynamics are identified. In addition, the issues of banking chatbots, in particular the efficiency of their activities and areas of use in banking, as well as the list of the most active chatbots in the banking market are also thoroughly studied. Attention is also drawn to online banking applications and their importance for providing quality banking services, the main focus is made on the five best banking applications in 2021. Besides, the article focuses on Ukrainian neo-banks, first on the important differences in their work, basic characteristics and competitive advantages, as well as existing barriers for digital domestic banks. At last, an opinion on the role of FinTech in stimulating innovation and digitalization of the banking sector has been formed. The final point of the article is to outline future potential or already existing, but not yet very active trends and tendencies in the process of further digital transformation of both the global banking sector and the Ukrainian one in particular.
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