Innovation in Financial Services: The Rise of Neo-Banks and FinTech Companies

Abstract

With improvement in defining and redrawing the boundaries through use of technology, cut throat competition has emerged in the financial services industry attributed. For instance the rise of neo banks. This paper investigates and examines such innovations by these institutions that aid in growth and competition of this new trend by facilitating better consumer experience, customized services, and strong use of technology. In this regard, a comprehensive approach has been taken outlining numerous case studies and interviews with expert practitioners, which aim to clarify how exactly these innovations work and what effects they have on customers and financial market. The outcomes not only point out enhanced service provision and cut down in expenditures for the clientele but also changes in the forces of the market that persuade the conventional banks to recalibrate their business strategies. By looking at these disruptive outcomes, the study points to some of the opportunities and directions of evolution that other financial services may explore towards more flexible and technology-based services. This research sheds light on theoretical aspect in addition to providing practitioners a way through challenges of digitization of financial services.