A Tool for Detecting Neobanking Users

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: demographic...

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Main Authors: Aleksandra Amon, Timotej Jagrič
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:International Journal of Financial Studies
Subjects:
Online Access:https://www.mdpi.com/2227-7072/13/2/51
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author Aleksandra Amon
Timotej Jagrič
author_facet Aleksandra Amon
Timotej Jagrič
author_sort Aleksandra Amon
collection DOAJ
description 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.
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spelling doaj-art-7abae503f71b4f81a910cc8d034215dd2025-08-20T03:27:26ZengMDPI AGInternational Journal of Financial Studies2227-70722025-04-011325110.3390/ijfs13020051A Tool for Detecting Neobanking UsersAleksandra Amon0Timotej Jagrič1Institute for Finance and Artificial Intelligence, Faculty of Economics and Business, University of Maribor, 2000 Maribor, SloveniaInstitute for Finance and Artificial Intelligence, Faculty of Economics and Business, University of Maribor, 2000 Maribor, SloveniaThe 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.https://www.mdpi.com/2227-7072/13/2/51traditional banksneobanksuserscharacteristicsdemand
spellingShingle Aleksandra Amon
Timotej Jagrič
A Tool for Detecting Neobanking Users
International Journal of Financial Studies
traditional banks
neobanks
users
characteristics
demand
title A Tool for Detecting Neobanking Users
title_full A Tool for Detecting Neobanking Users
title_fullStr A Tool for Detecting Neobanking Users
title_full_unstemmed A Tool for Detecting Neobanking Users
title_short A Tool for Detecting Neobanking Users
title_sort tool for detecting neobanking users
topic traditional banks
neobanks
users
characteristics
demand
url https://www.mdpi.com/2227-7072/13/2/51
work_keys_str_mv AT aleksandraamon atoolfordetectingneobankingusers
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