Future bank consumers rely entirely on their smartphones; they don’t merely use them. Moreover, those in Generation Z are technologically advanced, risk-averse, and a little frugal. Generation Z will approach financial services with a more practical mindset since they are more cautious and volatile than other generations.
Neobanking platforms are a perfect match for the objectives of those who have recently entered employment and have a lot of disposable income. Several Neobanking platforms only provide their services via mobile devices. Neobanks also provide users with personalized recommendations to help them develop sound financial practices. In an effort to instill the value of money and budgeting from a young age, some neobanks even offer customized services for teenagers.
Neobanks is the answer the fintech community came up with as a solution.
What is a neobank?
A neobank is a specific kind of financial organization that doesn’t have any physical branches and only does business online. They provide customers with digital-only financial services that are simple, quick, and convenient to use. Neobanks can provide lower banking fees and greater interest rates than traditional banks because of their minimal operating costs.
In essence, a neobank is a bank that only operates online, providing all financial services through an internet platform with no physical location. Debit cards, loans, money transfers, payments, and other services are only a few of the ones it offers. Everything is provided digitally and exclusively on mobile devices.
Neo banks target customers in the retail and SME (Small and Medium enterprises) categories, and they work to fulfill their client’s changing needs by offering solutions that are specially crafted for them. Neobanks not only provide all services online but also cutting-edge, client-focused services to make banking even more convenient for its clients.
Top five Advantages of Changing Your Financial Requirements to a Neobank
The cost-effectiveness of neobanking in comparison to traditional banks is one of its main advantages. Neobanks only conduct business online, which results in extremely minimal operating expenses. As a result, they may charge cheaper fees and provide greater interest rates on checking and savings accounts.
Neobanks, in contrast, are exempt from having to cover the costs of maintaining physical branches. As a result, businesses are able to charge minimal or no costs. Also, because there are no credit concerns and fewer regulations, neobanks are significantly more affordable.
Hassle-free account opening
Consumers can easily open an account and make use of the extensive features offered by the neo-banking system. Since all services are digitally accessed and thus always available, customers can open an account and enjoy neobanking services around-the-clock without having to go to a branch. Neo banks are a superior alternative to the conventional banking system because they do not have a time-consuming account opening process.
With Fi.Money, one can quickly start a zero-balance savings account online. There is no paperwork and no additional costs! Working professionals in India can join up with Fi.Money in under 5 minutes.
Most of the solutions prioritize and optimize their user interface and user experience because they are online-only services that excel at convenience and accessibility. In banking, the use of APIs has increased due to their real-time capabilities, which has improved financial management insight.
Neobanks employ AI to suggest additional financial services to customers based on client data, account information, patterns, and much more. Neobank apps are created to enhance the convenience of online banking. Neo-apps are user-friendly, effective, and visually appealing.
Payments and money transfers are a considerably smaller part of banking nowadays. With its additional value offerings, Neobanks demonstrates this.
Neobanks aren’t actual banks because they lack banking licenses and aren’t overseen by the RBI. They are exempt from the rules and regulations that legacy banks have, which allows them to maintain low expenses. As a result, they have a little bit more freedom than conventional financial organizations.
Improved technology and security
The two biggest advantages of fintech platforms are technology and security. The USP of neo banks in the face of technological improvements is the use of cloud analytics, artificial intelligence (AI), and robotic process automation (RPA), which create a distinctive banking experience for the average client and reduce any potential concerns of data leak and malware.
Hence, the level of security offered on neo-bank platforms offers a safe and secure banking experience as well as numerous layers of security that are essential in today’s digital banking in the form of encryption, passwords, 2-factor authentication, biometric verification, etc.
Neobanking is leading people towards a more comfortable banking experience, even though traditional banking services have their advantages. The ideal illustration of how user-friendly banking can be is neobanking. This brand-new, quick, and practical method of banking is already popular with customers all around the world. The future of secure, digital banking is demonstrated by Fi.Money and its RBI-licensed partner Federal Bank. An individual can use it to analyze their spending, save money, and make intelligent investments. In a nutshell, Fi.Money is an easy-to-use online banking service that enables you to manage your finances more wisely.