A Tool for Detecting Neobanking Users

Aleksandra Amon () and Timotej Jagrič
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Aleksandra Amon: Institute for Finance and Artificial Intelligence, Faculty of Economics and Business, University of Maribor, 2000 Maribor, Slovenia
Timotej Jagrič: Institute for Finance and Artificial Intelligence, Faculty of Economics and Business, University of Maribor, 2000 Maribor, Slovenia

IJFS, 2025, vol. 13, issue 2, 1-18

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.

Keywords: traditional banks; neobanks; users; characteristics; demand (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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