The post-internet era has seen a phenomenal change in most types of business activities. Banking is one of them. Over the years and with the passage of time, banking has brought about a pleasant change, the way it happens today and with lots of simplified processes, for the convenience of global customers.
Whenever we talk about a bank, the first few things which come to our mind are about its services, benefits and how convenient it is for customers. Convenience also includes logistics. In other words, is there a branch of the bank, conveniently located to the customer’s residence? However, off late, there is an exciting development that’s happening globally! And this is creating a sensation everywhere. The new name creating waves globally is Neo banking!
What is so interesting about Neo Banking then?! Read on to know more!
The emergence of Neo banking
If what we hear is true, then the traditional banking system could well be challenged in times to come as the concept of Neo banking is keeping customers and financial service providers equally interested. The concept of Neo Banking which began about 5 years ago through Financial Technology firms is a new type of digital Banking system. What adds to the excitement is that Neo Banking does not have any branches. In a way, it looks to be refreshingly different from the traditional Banking system as it is completely online.
Emerging businesses and independent business professionals are seeing Neo bank as an effective system to meet their financial requirements towards setting up their businesses. There are significant advantages as a Neo banking system is well-equipped with specific accounting features, including VAT and invoicing that are basic necessities for the self-employed.
How does Neo bank work?
Neo banks offer all the services which a traditional banking system does. They include digital banking, money lending, money transfers, etc. For easy understanding, a ‘Neo Bank’ is a bank that is completely supported by a digital and mobile platform. As mentioned earlier, it does not have any physical branches. The systems associated with Neo Banking are also new. A good example of a Neo Banking system would be the mobile apps that facilitate the administration and processing of credit cards as they rely on customers having an account with an underlying Bank and corresponding bank license, but offer a user-friendly interface.
Neo banks don’t have a bank license of their own but largely depend upon banking partners to provide bank licensed services. The main objective of Neo banking is to bridge the gap between services what a traditional banking system continues to offer and Customer Satisfaction. Compared to a traditional banking system, Neo banks have a completely different business model altogether. As Neo banks are designed to be customer-centric and are online, there is a considerable benefit in user fees. This is an all technology-driven system, especially for those users, who would like to literally allow technology to take over their day-to-day living.
Neo banking is a completely data-driven arrangement where customer data is collected and used even for micro-level analysis. Operating on modernized platforms helps officials analyze customer behavior and how they adapt to the Neo banking system.
As far as opening a Neo bank account is concerned, it’s very easy and can be done via smartphones in minutes. Customers are not required to wait until their documents are verified as that happens as a parallel process. This has attracted a large number of people, especially those people who may be dismissed by traditional banks because they don’t have a large enough income to make them a creditable customer. There are some banks who insist that customers keep the balance in their account at a certain level. These prerequisites are removed by Neo banking. Another positive sign is that Neo banks offer free accounts, as well as a range of accounts with a monthly fee, but even these are much lower than an established bank would charge for the same service.
What are the advantages of Neo banking?
Here are some key points that may interest you in moving towards a Neo bank.
The simple account creation process
The tedious process involved in creating an account in the traditional banking system seems to be well addressed in the Neo banking system, to the satisfaction of the customers. This process is completely eliminated while creating an account with a Neo bank as you you can do it in a couple of simple steps, right at the comfort of wherever you are, and on your phone! And, you’ll have the account ready in just a couple of minutes!
Smooth and Secure International payments
An attractive arrangement with Neo banks is the seamless way by which international payments can be made through Neo bank cards. This card is enough to make international payments too and there is no need to have a separate International Debit card. You can use your card to make purchases, or transact while you’re overseas, with current exchange rates.
User-friendly interface
All that matters is end-user experience and Neo bank works its way well to achieve that goal. With this newly introduced mobile banking app, there is little opportunity to face an otherwise slow on a non-responsive banking app. Neo bank apps are designed to be user-friendly, crisp and clean which facilitate smooth user operations.
Smart reporting
Any transactions made through Neo bank are immediate and your account balance is updated instantly and can be viewed at the bottom end of the app. The Neo-app also provides you with an analysis of your expenses, along with a savings goal that can be customized to best suit your needs. This helps you manage your finances in a much better and informed manner.
A great Business option
Neo banks are proving to be of good support to new as well as established businesses. From accepting payments to managing cash flow to reconciling transactions, Neo banking can provide a completely different user and customer experience. Apart from saving time, this exciting system can help you exercise control over your banking transactions. In addition, users can keep themselves updated on payment dues and receivables at any stage.
Conclusion
One of the big discussions in the financial industry is about Neo banking. In recent years, we’ve seen a massive change in the finance industry. With a number of financial technology players emerging in the country, digital payments are embraced on a large scale. Customers prefer online banking than physical banks and physical cash. As a rapidly developing economy, India is also moving towards adopting financial technology. More and more people are getting comfortable making online payments through digital gateways like Google Pay, Paytm, PhonePe, etc.
If we think about these numbers, we can see the potential Neo banks have in our country. Neo banks provide a better degree of assurance and fluidity that traditional banks don’t. They can easily sustain themselves and turn out to be profitable. Overall, Neo banks are changing the entire banking experience. It will take some more time to grow this new financial sector, but it evident and clearly visible that the number of people resorting to digital banking is only increasing by the day and that’s where Neo banking can really challenge traditional banking. Years to come will see more of Neo banking and that is not a surprise.
Experienced Digital Marketing professional with a demonstrated history of working in the information technology and services industry. Skilled in Search Engine Optimization (SEO), Landing Page Optimization, Adwords, Search Engine Marketing, HTML, CSS, WordPress, and Social Media Optimization (SMO). Now working with DeveloperOnRent a fast growing IT outsourcing Company
