Banking Without Borders_ What Drives Neobank Use in Latin America

Financial inclusion in Peru remains low, with only 55.9% of adults owning a deposit account and 13.4% having an active credit card. This is potentially exacerbated by an oligopolistic banking sector where four banks dominate 80% of the market, insufficient payment infrastructure due to high installation costs, and widespread financial illiteracy, as 41% of Peruvians lack basic financial capabilities. These barriers hinder economic growth and perpetuate poverty, limiting access to essential financial services. Neobanks, leveraging fully digital platforms and mobile technology, present an opportunity to address these challenges by providing inclusive, cost-effective, and user-centric financial solutions. However, their usage in Peru remains underexplored. Thus, this study explores the factors influencing the intention to use neobanks in Peru guided by an adaptation of the Theory of Planned Behavior that incorporates behavioral beliefs and control as predictors of Behavioral Intention. Data from 192 respondents were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results indicate that Privacy Concerns, Expense Control, and Service Quality significantly drive Behavioral Intention, with Privacy Concerns showing a surprisingly positive impact.