Fintech & trust

: a game-changer for neobanks in Germany

Abstract

Throughout the last decade, the fast-paced and disruptive technological developments have brought major changes in the banking industry, further promoting digitalization and the establishment of internet-only based neobanks. However, neobanks have raised concerns about data-handling, privacy and security-related risks, severely compromising their trustworthiness. Hence, they focus on providing unique customer experiences by including practical digital banking features in their value proposition. Also, they tackle environmental challenges and contribute to the achievement of the SDGs. Based on previous literature, an experimental study was conducted to examine the role of digital banking features regarding the trust perception among users and non-users towards neobanks in Germany, and the impact usage experience and digital affinity have on those trust levels. Results confirm the presence of links between six out of eight assessed features (Instant Push Notifications, Free Payments and Money Withdrawals Globally, Spending Analysis, Immediate Money Transfer, Customer Service, and Impact Measurement of SDGs Contribution) and trust, both among users and non-users of neobanks. Moreover, findings point to age-specific and experience-based variation in the influence of definite digital banking features on trust levels. Accordingly, the research supports neobanks in understanding which features to incorporate in their product portfolio and how to address customers’ needs and trust concerns.This dissertation provides significant academic and managerial implications, highlighting how digital banking features are valued in relation to trust, in Germany. Additionally, it presents important contributions for existing and upcoming players that want to gain in-depth insights about people’s trust perception to effectively plan future strategic endeavors.

Date of Award	21 Oct 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Miguel Rita (Supervisor)