Neobank Adoption Dynamics in Africa Shaped by Benefits Barriers and Fintech Regulation

Abstract

We examine how user perceived benefits and fintech regulation jointly shape neobank adoption outcomes across African markets. We apply the NeoAdopt Regulatory Model using a continent wide secondary dataset covering licensed digital only banks between 2018 and 2025. We analyze a validated sample of 34 neobanks drawn from a confirmed population of 148 platforms using standardized constructs and moderated regression analysis. We find that perceived cost efficiency and service accessibility strongly drive adoption intensity, while digital user experience plays a central role in building user trust and sustaining usage continuity. We also find that these benefit driven effects are not uniform. Regulatory clarity, consumer protection, and supervisory support significantly condition whether adoption stabilizes and scales into broader market penetration. The core contribution lies in identifying a staged adoption logic in which benefits trigger entry, experience sustains engagement, and regulation determines durability and scale. This refines digital banking adoption theory by integrating institutional moderation into benefit based models. The results offer globally relevant guidance for regulators and neobanks seeking sustainable digital finance diffusion and effective policy design in emerging markets.