Abstract

It is widely acknowledged that (digital) technologies orchestrate socio-economic development, especially at the intersection of technological innovation and ‘socio-politico-economic’ space. Yet, the meaning of ‘development’ in the Global South remains contested. Small and medium entrepreneurs (SMEs), financial inclusion and integral engagement of digital technologies are central to this debate. The capability and emergence mechanisms that digital technologies, including digital platforms orchestrate, have spawned new ecosystems such as Neobanks – banks built on digital technologies and digital ecosystems in providing banking services in form and function. In the context of Neobank, digital technologies do not only evidently come to the fore influencing every facet of strategy and operation but also sociotechnical engagement. The interplay of Neobanks, nature of digital technologies, SMEs and financial inclusion is understudied. In our study, we apply a critical realism and sociomateriality lens to unearth how technology, strategy, operations, and social context co‑construct banking practices capable of reducing inequalities for SMEs. We first addressed the fragmented literature on Neobanks definitions by integrating non-researched sources with academic discourse, producing a streamlined definition. Next, drawing on realist-narrative review of 36 Neobanks across six geographies, we unearth five interlinked dimensions: banking services, staff compositions, digital technologies, cybersecurity, and digital savvy customers: essential in illuminating the capabilities, tangibility and materiality (form and matter) of digital technologies in enabling Neobanks agility.

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