Now that we’re in the second decade of the 21st century, people are becoming increasingly aware of how digital technology can revolutionize their day-to-day lives. The digital transformation has affected almost every industry, from online shopping and bill payment services to mobile banking and peer-to-peer payment solutions.
Even the banking sector is no exception, as a growing number of consumers are ditching their traditional bank accounts in favour of modern financial solutions like Neo Bank. But what exactly is Neo Bank, and what are its benefits? Let’s find out in this article!
What is a neobank:
A neobank is a digital bank without branches. They offer all traditional bank services via a digital setup or mobile apps. These banks don’t charge you any maintenance fee, and all their costs are transparent. They also partner with traditional banks to provide you with cards and virtual accounts. The neo-banking industry is growing rapidly in India since many consumers who prefer money management with their mobile app or other digital methods prefer opening their accounts with these neobanks.
How are NeoBanks different from traditional banks:
Neobanks are often considered ‘the future of banking’ because they combine the best features of traditional banks with the convenience and accessibility of online banking. First, They are more innovative and agile than their larger counterparts which means they can better respond to customer needs and trends.
Second, they are much more accessible than traditional banks, meaning that they can be used by a broader range of customers and serve as a stepping stone for those looking to move onto other financial products. And third, they are generally less expensive than traditional banks, making them more attractive to consumers on tight budgets.
Advantages of Neobank:
By now, I am sure you have an idea of what are Neobanks and how they differ from the traditional banks. Let’s move further and learn about the advantages of a Neobank:
1. Low cost:
Since neo banks don’t have any physical branches and require minimal regulation, the cost of running the bank is low, resulting in higher revenues. Therefore, customers don’t have to pay the monthly or yearly maintenance fees to keep their accounts open, and no hidden charges are involved.
NeoBanks offer excellent convenience to their customers because they are entirely digital. This means that you get access to all the banking features straight on your smartphone, and you can benefit from these services from the comfort of your home.
In case you face any issues, most of the Indian NeoBanks provide 24×7 support, which means that you can get in touch with one of their representatives with a few clicks. NeoBanks are known to solve customer issues faster than traditional banks and require fewer efforts from the user.
3. Better features and products:
NeoBanks has a broader range of products available when you compare them with traditional banks. They offer the best savings plan with higher interest rates, and you can also avail loans with minimal documentation. The registration process is fast and easy, making it a perfect choice for people getting their first bank account.
4. Fast processing time:
Everyone is aware of the fact that NeoBanks offer faster processing time. For example, if a person wants to apply for a loan in a traditional bank, he’ll have to wait in a queue for his turn to get the application form. Once he has the application form filling it out and submitting the required documents are two mandatory processes which are time-consuming. Along with this, there are several other processes which you have to go through when you apply for a loan at a traditional bank, and sometimes that can get tiring.
However, this isn’t the issue with NeoBanks because they bypass these time-consuming processes, and you can do it directly from the app or website. They also have innovative strategies like a pre-qualified loan which you can get in a few hours.
International payment at ease:
Paying a friend or a merchant internationally can be challenging when you are using traditional banking services. This is because users have to apply for an upgrade to an international debit card that can allow them to send their money outside the country.
However, when you are using a NeoBank, you can use the virtual debit card to send international payments without going through the process of card upgradation.
We hope you enjoyed our article on Neo bank. With this knowledge, we know that you can make the most of your investment and savings, as you can use a Neo bank to store your money safely and securely. So what are you waiting for? Start using Neo bank today by visiting our website.
Author Bio: Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She’s been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo Save, a neobank that offers a 7% interest rate on savings along with benefits such as insurance on balance, safe & secure banking, and so on, Naina stays updated with the latest of what happens in the banking and fintech industries. She has taken upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.