Quantitative and theoretical analysis of neobank growth in Europe and the United States : insights from the Monzo Case
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Abstract
Over the years and after the economic and health crises worldwide, the banking industry
has completely transformed into a system that is the present and future of reality. All
banking systems have transformed into digital banking, bringing huge changes to the way
banks operate now.
This thesis analyses the global transformation and expansion of neobanks - digital financial
institutions whose operation is achieved without a physical presence, that is, without the
existence of physical branches. Neobanks, wishing to keep up with technological
innovation and the needs of modern people, have developed a new banking approach with
the result of reducing their costs and prioritizing high-profile financial services through
mobile phones. They are distinguished by flexibility, as they operate in a friendly and user-
friendly manner, thus simplifying the user's daily life. Because of this, millions of
customers are choosing this new way of banking.
The main purpose of this thesis is to analyse neobanks in an integrated framework, which
will include both theoretical and empirical research. The focus will be on the international
expansion methods they follow. The differentiation of neobanks from other financial
environments in the competitive landscape will be examined, through a bibliographic
analysis, as well as the various regulatory functions and challenges they have faced. More
specifically, Europe and the United States of America will be approached, as they are two
fairly developed markets in the field of fintech adoption.
The theory of this dissertation includes academic research and industry reports, in order to
accurately analyse the methods and extensions of the most leading digital banks, such as
Revolut, SoFi and others. The practical part is based on the quantitative case study of
Monzo Bank, a Neobank based in the United Kingdom. The study will analyze key
performance indicators, such as the number of customers, individuals and businesses, their
deposits together with their lending activity, the growth of the bank's income, the average
income per user, the loan loss ratio and the net interest margin. These indicators are known
using official financial data from Monzo's Annual Report for the financial year 2025 and
are evaluated based on annual growth. Their interpretation is done through the analysis of
measurements and the correlation between variables, so that they constitute the financial
progress and expansion of the bank.
The theoretical analysis together with the evaluation of the data will provide a holistic
approach and understanding of the operation of neobanks, so that they can achieve the
expansion and evolution they desire in the increasingly digital and dynamic financial
environment. The study will be completed with reference to the sustainability of the
systems used by neobanks and the potential shaping of the future of the banking system
worldwide, beyond the limitations of traditional financial systems.
Postgraduate Studies Programme
MBA TQM International - Ευρωπαϊκό Πρόγραμμα Μεταπτυχιακών Σπουδών στη Διοίκηση Επιχειρήσεων – Ολική Ποιότητα με διεθνή προσανατολισμό (MBA TQM Int)Department
Σχολή Οικονομικών, Επιχειρηματικών και Διεθνών Σπουδών. Τμήμα Οργάνωσης και Διοίκησης ΕπιχειρήσεωνNumber of pages
89Language
EnglishCollections
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Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα
Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα