The Digital Banking Revolution and the Premises for the Emergence of Neobanks in Moldova

Abstract

The digital banking revolution has profoundly changed the way banks operate today. This transformation is also due to the emergence of neobanks, which have forced traditional banks to adapt to these major changes. The digital banking revolution has been driven by the introduction of digital technologies such as mobile applications, artificial intelligence, and blockchain. All of these have changed the way customers access and interact with banks. Compared to traditional banks, neobanks have excluded branches and/or counters from their infrastructure and offer online services at low cost and with 24/7 accessibility. In the Republic of Moldova, the conditions for the emergence of digital banks are emerging. They are linked to the introduction of technology in banks, financial education, and the need for financial inclusion. The advantages of neobanks over traditional banks are cost, transparency, accessibility, speed, and personalization. However, they also come with a number of disadvantages: lack of physical contact, limited use by the elderly, regulation, limited services when complex banking services are required, and exclusive dependence on technology and the internet. In the Republic of Moldova, in addition to the premises mentioned above, which are specific to all countries, there are also specific local premises, such as migration and the diaspora. The future of neobanks in the Republic of Moldova depends on their ability to adapt to local specifics. The research methods will be description, comparison, analysis and synthesis. At the end of the research, we will present the research findings materialized in conclusions and recommendations. JEL: G21, G28, G51