Work

A Tool for Detecting Neobanking Users

Year: 2025

Type: article

Abstract: The banking sector is experiencing significant disruption due to technological advancements and evolving customer demand. This study analysed over 2000 banking and/or neobanking users across 28 countries. A multinomial logit model was applied to examine three user characteristics groups: demographics, banking habits, and neobanking habits. Several interesting effects were found. Higher-educated and single users are more likely to use neobanks, while self-employed and lower-income users are less likely. Neobank users prioritize affordability, availability, and speed, while traditional bank users prioritize stability and personal interaction. We have developed a tool to identify clients likely to leave traditional banks, fully or partially, with high reliability. Even partial outflows mean banks lose important services generating significant revenue to competitors. A crucial factor here is the single banking market, which eases switching between banks. Neobanks further reduce barriers, enhancing customer mobility. Moreover, opening an account with a neobank takes only minutes. The findings of this study provide valuable insights for banks and neobanks, allowing for a more comprehensive understanding of users’ characteristics that reflects current customer demand and enables new strategies to better address them.

Source: International Journal of Financial Studies

DOI: 10.3390/ijfs13020051

Authors: Aleksandra Amon, Timotej Jagrič

Institution: University of Maribor

Language: English

Topic: Digital Transformation in Financial Services

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,172

Funder: Univerza v Mariboru