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Neo banks are digital banking platforms that simply operate online and do not have a physical presence but obviously have some added advantage to them from this arrangement of operation. These banks avoid traditional queuing systems, long complaint resolution times, and result in speedy actions as compared to traditional bank. The tech-driven nature of the bank provides the facility to create accounts without going through the time-consuming processes seen in a traditional bank.
Features of Neobanks
These banks have to partner with a physical bank in India in order to deliver their services to their audience. If we look into the traditional banks’ basic offerings such as savings accounts, credit cards, and personal and business home loans… Neo banks do it differently.
Neobanks also give great offers on their credit cards. Neobanks are known for their fast operations and are becoming a more feasible choice, and some Neobanks are also starting to offer some really unique products such as high-limit unsecured credit cards that are offered on business performance.
The future
So, why are Neobanks going to be a part of the future? The answer lies in the pace at which technology is expanding and people’s positive reactions towards it. Although giving money to a machine and having the “trust factor” of the human interaction that we receive in traditional banks, Neobanks have the potential to replace old traditional banking systems because of the following reasons:
1. Customer experience: Neo banks have very streamlined business models and better technology at their disposal. They provide ease and convenience in seamless account creation, near real-time cross-border payments, and artificial intelligence (AI) and machine learning (ML)--enabled automated accounting, budgeting, and treasury services.
2. Transparency: Neobanks are really transparent and are more than happy to resolve customer complaints in real time regarding charges and penalties incurred by the customer.
3. Deep insights: Most Neobanks provide easy-to-understand interfaces to their customers that contain data for services such as payments, payables, receivables, and bank statements which serve as an excellent tool for business to reduce their expenditure.
So, although there are some setbacks regarding the license and the trust factor, Neobanking is the dawn of banking, where a more convenient, cheaper, and personalized way is adopted in order to meet customer needs. As more and more consumers are digitalizing their financial demands, neobanks are leading the way and innovating the financial ecosystem. So, if you have not joined the train of neo banking, it may be best to grab the opportunity now and enjoy the luxury of the future of money in your hands.
Thank you.
Regards,
Samir Khan,
Kautilya, IBS Mumbai.
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