The Neo banks: A new business model in the global financial ecosystem in times of Covid-19 and its impact on the colombian economy
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https://orcid.org/0000-0003-3234-6260
Abstract
Neo banks are a new business model in the global financial ecosystem that have been able to take advantage of the opportunities created by the COVID-19 pandemic. In Colombia, these financial entities have experienced significant growth and can have a positive impact on financial inclusion and competition in the financial sector. The aim of this article was to identify the importance of Neo banks in the economic reactivation in Colombia and global financial trends in times of COVID-19. The article is of a descriptive-analytical type, supported by secondary data collection sources. The results suggest that Neo banks, by offering their digital financial services in terms of accessibility, agility, and quality throughout the Colombian territory, is a powerful strategy for improving the socio-economic situation of rural inhabitants and empowering vulnerable communities. However, a challenge for these entities is overcoming barriers to access financial products in Colombia, enabling greater financial inclusion for population segments that had not been considered by traditional banks, and enabling better capital conditions for investment in the banking sector and the granting of credit to SMEs. It is concluded that Neo banks benefit significantly by incorporating FinTech solutions (technology in financial processes) into their operations. With greater channeling of public monetary resources towards Neo banks, their contribution to the national economy will be greater. This, in turn, will allow for a greater margin of capital maneuverability in the banking sector for the granting of investment credits to SMEs and entrepreneurs, achieving a favorable long-term impact for the country's economic reactivation. Considering the COVID-19 crisis within the financial context, the business models of Neo banks and FinTech are collaborative towards greater financial inclusion without diminishing user security systems.
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