Role of Neo Banks in traditional finance disruption

Role of Neo Banks in traditional finance disruption

Abstract

Neobanks — digital-only financial entities that operate without physical branches — have rapidly gained prominence by offering customer-centric, technology-driven banking solutions. This paper systematically reviews the literature on how neobanks disrupt traditional banking and synthesises secondary data to empirically interpret their impact on efficiency, customer adoption, and financial inclusion. The findings demonstrate that neobanks are reshaping conventional banking models through digital innovation, customer experience, cost efficiency, and partnerships, while also posing challenges such as regulatory limitations and competition for legacy banks. The study concludes with implications and directions for further research.

Authors

Dr. Nidhi Shekhar, Anand Kumar, Anish Raj, Amit Suman, Anchal Chauhan

Institution

NIET Business School, Greater Noida

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