NEO Bank and Its Uniqueness!

There is a great hype going around Neo banks in the Fintech Industry and for good reason. These banks have changed the future of the banking and finance industry significantly. They operate digitally, allowing you to make online transactions remotely.

All the operations take place virtually, which means they don't have any physical location. Currently, Neo Bank has limited offerings, probably the savings and current account services only.

What are Neo Banks?

Neo banks are digital banks operated and managed online. They are also known as branchless banks, ideally best suited for tech-savvies who can easily manage their monetary operations remotely through mobile apps.

Basically, Neo bank is a money-management app that comes packed with a plethora of features used for streamlining the management operations. It provide a seamless user experience and operates at a faster pace as compared to traditional banks.

The registration process is pretty straightforward. There is no paperwork involved, and neither do you need to fill any lengthy forms. You can download the app on your mobile and complete the registration in a few steps.

Objective of Neobanks

Neobank offers you savings & checking accounts, online payment, money transfer services, budgeting and educational tools.

Credit facilities are available, but only a few banks offer credit. These banks offer a high-level of security features ensuring your money is safe. The bank you choose for your Savings Account should be federally insured.

Neobanks have clean, smart, and intuitive mobile apps. They feature a neat surface with all the payment and banking options displayed on a single centralized system. It aims to create a banking environment that enables people to process multiple transactions within simple clicks, therefore saving you the cost of travelling.

The app has every feature that streamlines complex banking activities. Right from opening a savings account to making transactions, the Neobanks app allows you to execute any online activity easily.

Benefits of NeoBanks

Cost - Effective

Neobanks are not associated with any physical brand, which means it doesn’t require operational and labor costs. Overall, there is only a small fee required to run the basic banking operations.

Convenient Banking

Digital operations mean you can use any feature of the app from the comfort of your home. No need to visit the branch. With Neobanks, it is much easier to manage your finances and get your issues resolved.

Fast Processing Time

With the entire operations taking place digitally, Neobanks accept and process customer requests efficiently. Customers can pre-qualify for the loan and check the interest rates of the same from their mobile.

Quick Reporting

The stats are updated on the dashboard every few minutes, allowing you to get the most up-to-date information about your account balance. It also enables users to get the payment and transaction details from a single mobile app.

Support International Banking

You have to upgrade your debit/credit card for international banking in the traditional banks, but Neo banks enable people to process a large number of international transactions without having to update anything.

Drawbacks of Neo Banks

No branch. Online banking is getting undoubtedly popular and it isn’t uncommon for Neobanks to establish a partnership with ATM for banking operations. However, most people want to visit the bank’s branch and meet the executives in person for better customer support service.

Neo bank offers quality support through its robust online customer support service tools.

Limited to Tech-savvy Customers

Neobanking is for the users who are comfortable using the latest technology. If you can’t keep up-to-date with the latest technology trends, then neobanks may not work for you. Besides, it might get a little trickier to Handle the banking operations from your smartphone.

Best Neo Bank List in India

• Airtel Payments Bank
• NiYO
• Digibank by DBS
• Finin
• FamPay
• InstantPay
• Open Neo Bank
• Yodaa
• Streak Card

In addition to Offering financial services, Neobanks offer valuable stats and insights that allow people to get a clear picture of the banking services. All this can be done from the mobile screen, allowing you a high level of convenience and comfort.

Neo Banks vs Traditional Banks

Neobanks are comparatively better than traditional banks, as they focus on offering customer-centric financial services. The main difference between the Neobanks and traditional banks is that the latter supports digital operations and has no physical branch. Traditional banks, on the other hand, have physical branches located in different parts of the country.

For example, the procedure of obtaining a loan from a traditional bank is absolutely different from the same in the Neobanks. If you apply for the mortgage application in the traditional banks, it will take a lot of paperwork, many in-branch meetings, and documentation. Plus, the process is lengthy and time-consuming. Neobanks streamline this process by automating the manual tasks and saving you a lot of time on Labor-Intensive procedures.

Security Features

Neobanks have implemented the latest security protocols, including biometric verification, two-Factor authentication, and RBAC. This encryption technology is used to ensure that the users enjoy online banking operations safely. The bank complies with the latest privacy and anti-money laundering laws.

Bottom Line

Neobanks is transforming the world of banking. It’s become easier for customers based across the world to ensure seamless and effective transactions without having to pay a visit to the physical branch. However, this banking is still quite new to the industry and is in the development stage. So, whether or not this form of banking will shape the future of the finance industry is still a question!