Fintechs and Banking: A Note on Neobank Risks
DOI:
https://doi.org/10.33423/jaf.v25i1.7507Keywords:
accounting, finance, fintech, neobanks, mobile banking, online banking, cybersecurity, millennials, Gen Z, monetary policyAbstract
The fintech industry has made rapid inroads into banking in the last several years. Pundits tout that it will improve efficiencies while giving consumers broader choices in developing their banking portfolios. Others posit that it will erode bank profitability and that its success is tied to monetary policy. Our research focuses on an overlooked aspect of fintech: neobanks, sometimes called a challenger bank, that allow customer access to apps and software that streamline online and mobile banking. This paper will cover a brief history of fintechs, fintech advantages, and finally, discuss some of the risks of neobanking.
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