3. Wikipedia [Electronic resource] :https://en.wikipedia.org/wiki/International_Bank_for_Reconstruction_and_Development. – Date of access: 24.03.2018. 4. NATIONAL BANK OF THE REPUBLIC OF BELARUS [Electronic resource] :http://www.nbrb.by/engl/today/about/general. – Date of access: 24.03.2018. 5. BELTA [Electronic resource] : http://eng.belta.by/economics/view/belarus–development–bank– works–on–three–supply–contracts–with–georgia–110277–2018/. – Date of access: 24.03.2018. 6. Development bank [Electronic resource] :: https://brrb.by/en/about/. – Date of access: 24.03.2018.

View metadata, citation and similar papers at core.ac.uk brought to you by CORE УДК 336.71 THE FUTURE OF NEOBANKS IN THE DEVELOPMENT OF BANKING SECTOR

И.М. Минарченко, И.Л. Сайко, слушатель группы ПИ–1701в Научный руководитель – А.С. Голикова, ассистент кафедры финансов Полесский государственный университет

The explosion of mobile technology and people’s distrust for traditional banks following the economic crisis make this a fertile time for new financial firms. The first wave of neobanks came on the scene in the early 2010s, and they have seen varying degrees of success. Today the landscape is shifting, with some neobanks acting more and more like traditional banks, even as traditional banks try to compete with the neobanks by launching stand–alone brands. In addition, fintech firms that operate in other sectors – primarily lending – are getting to the deposits business. So, what is a neobank? The most common definition of a neobank is an institution that provides some combination of checking accounts, savings accounts and debit cards via digital channels – primarily mobile –without any physical bank branches [1]. Neobank apps tend to be slick and simple, designed to help you better understand, and hopefully improve, your saving and spending habits. In general, a neo– bank is an institution that provides checking, a prepaid debit card and some form of savings account without the traditional brick–and–mortar building [6]. This usually includes features like mobile deposits, P2P payments, mobile budgeting tools and real–time digital receipts. Put simply, a ‘neobank’ is a bank sitting on a 100% digital and mobile platform (so no branches) but more than that, its systems are 100% new too (not legacy) so it is not simply a digital front end to a traditional (and mostly cumbersome from a technological perspective) bank [10]. Neobanks provide easy and simple account start–up with strong digital support, and exceptional (24/7) customer support [6]. You do your banking via smart phones, at ATMs. The neo–bank is ideal for young people with simple banking needs. Neobanks are completely digital banks built on new technology as opposed to the outdated infrastructure of legacy banks. They usually tout better interest rates, lower fees, if any, and better service. They have an easier time creating a good customer experience because they don’t build on the rusty rails of the existing financial system, making the way they operate more efficient and the user experience more enjoyable. Neobanks are known as “challenger banks” in Europe and some people argue that challenger banks shouldn’t be confused with neo–banks. While neo–banks offer a mobile–first banking experience in partnership with a traditional bank, challenger banks aim at becoming fully–licensed banks, creating new data–driven banking experiences and pricing models [6]. But for the purposes of our study we will use neobanks and challenger banks as equivalent concepts. Neobanks differ from traditional banks because of the next features: - low cost structure: no monthly fees, no withdrawal costs and low reloading fees; - large ATM networks with no fees; - no overdraft fees because the checking products are prepaid, reloadable debit cards; - a simple and engaging mobile experience, unlike banking on a phone with a traditional bank; - intuitive budgeting and money–tracking tools that allow you to determine whether or not you should buy an item;ПолесГУ –real–time balances: the balance on your smartphone is the exact amount of money you have available. The other main difference is the breadth of products they offer. Neobanks have been purely deposit focused, but experts say many are looking to expand beyond deposits as they evolve from startups backed by venture capitalists to viable and profitable companies [1]. 335

Examining geographic distribution of neobanks, we can observe that most of them are located in Europe, with some interesting solutions in USA and Canada, big demand in Brazil and low activity in Asia (which motivates Asian banks and investors look closely at what is created abroad, invest in it and work in collaboration with teams involved on how to bring these solutions to Asian markets). The majority of European neobanks work in the UK: Monese (55K installations of mobile app, £41M worth of transactions), Tandem (raised £22M being valued at £65M), Monzo (35K clients in a waiting list) and others [5]. Neobanks are focused on new market clients (not on the whole market, which is always comprised of current/old clients mostly) that influence their brand positioning, the language of communication and perception. These clients have never been served by traditional banks – by force of age or geographical position, as developing countries are characterized by low level of banking services penetration. There are several neobanks which have been created for the Snapchat generation already. A new level of client service and support is characteristic of newcomers – one may ask any question (literally any question in any sort of language) in messenger or via video communication in the same way one asks for advice from a friend – and it will be answered immediately. To consider neobanks as another distribution channel or cost cutting possibility is a fundamental mistake. To be purely online service or traditional company, selling certain product via online channels, are two absolutely different things. But there are some disadvantages of neobanks. If you’re paid in cash, a neobank isn’t likely your first choice. While there are options to deposit cash via special Internet sites, sometimes the sites charge a fee [1]. Also there are some concerns about security of neobanks because there is always an opportunity of hacking into your account. So, what is the future of neobanks? I would suggest four scenarios for the future of neo–banks: 1. Neo–banks are acquired and assimilated into larger financial brands; 2. Larger brands start their own digital “neo–bank–like” brands; 3. Neo–banking fails to become a viable business model, but nevertheless influences the industry; 4. Neo–banking becomes the dominant method of accessing underlying accounts held at traditional banks. Most analysts believe we will see dozens, if not hundreds, of neo–banks launch in the next few years. Neobanks are doing a remarkable job in completely changing the banking experience of a customer. Though the products neobanks offer are same as traditional banks, they impress customers with features like real–time analytics and cash flow forecasts. These banks are basically technology companies with a banking license and they’re digital first. The speed at which one can open a savings account, using their apps, is amazing. So, though neobanks have their own challenges like attracting customers, long–term cash flows, security concerns and so on, I can see a lot of potential for them, especially in developing countries.

Список использованных источников 1. Barba, Robert. 5 questions to ask before trying a neobank [Electronic resource]. – Mode of access: https://www.bankrate.com/banking/5–questions–to–ask–before–trying–a–neobank. – Date of access: 27.03.2018. 2. Grindstad, Sophie. What is a Neobank really? [Electronic resource]. – Mode of access: https://www.paconsulting.com/insights/what–is–a–neobank–really – Date of access: 29.03.2018. 3. Skinner, Chris. Neobanks don’t need to be “real banks” to compete in banking [Electronic resource]. – Mode of access:ПолесГУ https://thefinanser.com/2017/03/neobanks–dont–need–real–banks–compete– banking.html. – Date of access: 28.03.2018. 4. Solodkiy, Vladislav. 5 Reasons Why Neobanks Are So Cool (And There Is No Trouble With Tandem) [Electronic resource]. – Mode of access: https://gomedici.com/5–reasons–why–neobanks–are– so–cool. – Date of access: 27.03.2018. 5. Solodkiy, Vladislav. Traditional banks vs neobanks and e–wallets. [Electronic resource]. – Mode of access: https://medium.com/@slavasolodkiy_67243/traditional–banks–vs–neobanks–and–e–wallets– 83bb9b710ef2. – Date of access: 28.03.2018. 6. Watkins, Steve. Neo–Banking: What – Another Innovation? [Electronic resource]. – Mode of access: http://www.pertechindustries.com/neo–banking–what–another–innovation. – Date of access: 27.03.2018.

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7. Williams–Grut, Oscar. App–only bank Atom nears £1 billion in deposits. [Electronic resource]. – Mode of access: https://www.businessinsider.com.au/category/neobanks. – Date of access: 26.03.2018. 8. Wisniewski, Mary. Why a former trust company launched a digital–only bank [Electronic resource]. – Mode of access: http://fintechranking.com/2016/02/04/why–a–former–trust–company–launched–a– digital–only–bank. – Date of access: 26.03.2018. 9. Team Europe Mapping the Global NeoBank Landscape. [Electronic resource]. – Mode of access: https://techfoliance.com/fintech–corner/insights/mapping–the–global–neobank–landscape. – Date of access: 26.03.2018. 10. Posted in blog news. So…whatПолесГУ is a “neobank”? [Electronic resource]. – Mode of access: https://www.xinja.com.au/news/2017/what–is–a–neobank. – Date of access: 28.03.2018.

UDC 336.76 CROWDFUNDING AS A SOURSE OF FINANCE FOR INNOVATIVE CLUSTER OF POLESSKY STATE UNIVERSITY

M.A. Malakhova, K.V. Palubis, 3 курс Scientific adviser – A.S. Golikova, assistent Polessky State University

Nowadays, many social projects cease to exist at the stage of business planning. The reason for this is the lack of support from the state for many projects. The way out of this situation for start – up entrepreneurs are sites on public financing–crowdfunding [1]. The first crowdfunding projects were implemented in the sphere of show business and cinema. In the late 90's and early 2000–ies activists organized several online campaigns to raise funds for the promotion of musical groups and movies. After this crowdfunding activities have become more popular: special websites dedicated to a particular project are being created, the scope of activities is expanding, an increasing number of participants is involved. Today crowdfunding works in different areas. This is charity, politics, support of scientific and medical research, projects in the field of culture, sports, urban development, infrastructure, environmental protection, etc. Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Crowdfunding is a form of crowdsourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion was raised this way [2]. Although similar concepts can also be executed through mail–order subscriptions, benefit events, and other methods, the term crowdfunding refers to Internet–mediated registries [3]. This modern crowdfunding model is generally based on three types of actors: the project initiator who proposes the idea and/or project to be funded, individuals or groups who support the idea, and a moderating organization (the "platform") that brings the parties together to launch the idea. The Benefits of Crowdfunding From tapping into a wider investor pool to enjoying more flexible fundraising options, there are a number of benefits to crowdfunding over traditional methods. Here are just a few of the many possible advantages: Reach – By using a crowdfunding platform like Fundable, you have access to thousands of accredited investors who can see, interact with, and share your fundraising campaign. Presentation – By creating a crowdfunding campaign, you go through the invaluable process of looking at your business from the top level – its history, traction, offerings, addressable market, value proposition. PR & Marketing – From launch to close, you can share and promote your campaign through social media, email newsletters, and other online marketing tactics. Validation of Concept – Presenting your concept or business to the masses affords an excellent opportunity to validate and refine your offering. Efficiency – One of the best things about online crowdfunding is its ability to centralize and streamline your fundraising efforts. By building a single, comprehensive profile to which you can funnel all your prospects and potential investors, you eliminate the need to pursue each of them individually. So instead of duplicating efforts by printing documents, compiling binders, and manually updating each one when

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