Awareness And Preference Of Neobanking- A Systematic Literature Review

Abstract

The rapid evolution of digital banking has led to the emergence of neobanks, which are digital-only financial institutions offering services without a physical presence. This study provides an in-depth exploration of Neobanking in Asia, particularly focusing on India, while also incorporating global insights. Neobanks have disrupted traditional banking models by providing low-cost, user-friendly, and accessible financial services, especially for younger, tech-savvy individuals and underserved populations. This paper reviews the key drivers of neobanks adoption, including user awareness, perception, satisfaction, and trust. The challenges faced by neobanks in terms of regulatory compliance, cybersecurity, and financial inclusion are also discussed. The paper highlights key business models, the role of technological advancements like AI, and regulatory challenges neobanks face in gaining wider acceptance.

Purpose: The study explores the rise of Neobanking in India, while also examining global trends and their impact on the financial sector.

Design: A review of literature, market trends, and technological advancements such as artificial intelligence (AI) in Neobanking, with an analysis of adoption drivers and regulatory challenges.

Findings: Neobanks have disrupted traditional banking models by offering low-cost, user-friendly services to younger, tech-savvy individuals and underserved populations, but face barriers like regulatory compliance, cybersecurity, and financial inclusion.

Research Limitation: The study's findings are based on current literature and market trends, and the rapidly evolving nature of Neobanking may affect long-term relevance.

Originality: The research offers fresh insights into the Neobanking revolution, particularly in India, and proposes strategies to enhance adoption, trust, and regulatory frameworks for neobanks.