THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR

Ahmad Al-harbi

doi:10.17261/Pressacademia.2025.1974

THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR

Abstract

Purpose- This paper explores the rise of neobanks and challenger banks, analysing their transformative impact on the traditional banking sector. It argues these technology-driven entities reshape financial services through efficient, customer-centric solutions meeting modern consumer preferences. Methodology-The study employs a qualitative research approach via a comprehensive literature review, examining academic articles, industry reports, and case studies. Findings- Findings reveal a significant shift towards digital banking, driven by historical context, technological advancements (like mobile banking, AI, open banking APIs), and changing consumer behavior favouring convenience, transparency, cost-effectiveness, and personalization. Detailed case studies of neobanks like Revolut, Chime, and Nubank illustrate successful strategies disrupting traditional norms. These banks leverage technology for lower fees, enhanced user experience, and financial inclusion. The analysis highlights the pressure on traditional banks to innovate and adapt amidst this digital transformation. Conclusion- Neobanks and challenger banks represent a fundamental shift, compelling traditional institutions to embrace digital transformation to remain competitive. The paper underscores the need for adaptation and addresses the regulatory challenges posed by these emerging financial players.

Keywords

References

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Details

Primary Language

English

Subjects

Finance, Finance and Investment (Other), Business Administration

Journal Section

Research Article

Authors

Ahmad Al-harbi ^* This is me
0000-0003-1593-7835
Saudi Arabia

Publication Date

July 30, 2025

Submission Date

March 27, 2025

Acceptance Date

June 9, 2025

Published in Issue

Year 2025 Volume: 14 Number: 1

DOI

https://doi.org/10.17261/Pressacademia.2025.1974

IZ

https://izlik.org/JA32CC24UZ

Cite

RIS / Bibtex

APA

Al-harbi, A. (2025). THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR. Journal of Business Economics and Finance, 14(1), 15-24. https://doi.org/10.17261/Pressacademia.2025.1974

AMA

1.Al-harbi A. THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR. JBEF. 2025;14(1):15-24. doi:10.17261/Pressacademia.2025.1974

Chicago

Al-harbi, Ahmad. 2025. “THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR”. Journal of Business Economics and Finance 14 (1): 15-24. https://doi.org/10.17261/Pressacademia.2025.1974.

EndNote

Al-harbi A (July 1, 2025) THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR. Journal of Business Economics and Finance 14 1 15–24.

IEEE

[1]A. Al-harbi, “THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR”, JBEF, vol. 14, no. 1, pp. 15–24, July 2025, doi: 10.17261/Pressacademia.2025.1974.

ISNAD

Al-harbi, Ahmad. “THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR”. Journal of Business Economics and Finance 14/1 (July 1, 2025): 15-24. https://doi.org/10.17261/Pressacademia.2025.1974.

JAMA

1.Al-harbi A. THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR. JBEF. 2025;14:15–24.

MLA

Al-harbi, Ahmad. “THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR”. Journal of Business Economics and Finance, vol. 14, no. 1, July 2025, pp. 15-24, doi:10.17261/Pressacademia.2025.1974.

Vancouver

1.Ahmad Al-harbi. THE GLOBAL RISE OF NEOBANKS AND CHALLENGER BANKS: DISRUPTION IN THE BANKING SECTOR. JBEF. 2025 Jul. 1;14(1):15-24. doi:10.17261/Pressacademia.2025.1974