Neo banking is well-known not only in India but all over the world. Every day, a new player comes into the market who primarily intends to simplify financial services. As the financial ecosystem is changing and focusing on customer satisfaction and experience, it has shepherded to a gap between what customers expect and what conventional do banks offer. And, here comes the “Neobank”. It generally strives to bridge this gap.
Understand the term “Neobank”
A Neobank is basically termed as a digital bank without any physical branches. It covers different financial service providers who cater to present-day tech-savvy customers. In other words, Neobanks are similar to Fintech firms offering mobile-first financial payment and digitized solutions, money lending services, money transfers etc.
Neobank is completely online. It can be said as an umbrella of financial service providers who attract tech-savvy customers. You must note that Neobanks do not have their own bank license, they rely on their bank partners to offer bank licensed services.
Why choose “Neobank”?
Neobanks are quite different and comprised of a unique business model from those of traditional banking systems. These banks marginally make money between money inflow and lending. Such types of online banking services provide customized services and highly customer-centric services to their customers backed by technology.
Neobank digital banking services are easily available at your fingertip. It is secure as it uses advanced technologies like facial identification, artificial intelligence (AI), and biometrics and all banking services are linked with one portal.
Sam Gupta, CEO, RBP Finivis said, “when deciding on a neobank, customers should see if its value aligns well with them and also check if there are any bonus benefits. “The lightness of a digitised bank is the greatest benefit in itself.”
How to Choose the Right Neobanks?
People planning for Neobanks digital banking services must choose the Neobank securely. They can follow the tips given to choose the right Neobank.
- Do your extensive research
- Consider your core values
- Understand the costs
- Check for interest rates
- Find the trade-offs
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