Neo Banking

In recent years, we’ve seen a massive increase in digital money transfer ex: G pay , PhonePe , Paytm and much more . Customers are moving away from physical banks and physical cash, and more towards online banking and wallets.

It’s not like a traditional banking system, , neobanks have a completely different business model But, like traditional banks, neobanks do make money marginally between money inflow and lending.

And, since there isn’t a physical location and that they’re completely online, the customer fees are slashed by a significant amount. Because Neobanks are customer-centric, they provide personalized services to their customers that are fired up via technology.

Since neo banking are completely digital , they open up wide advantages for customers , here are some key pints that will attract you towards neo banking .

  • Contact less account creation with less time
  • 24/7 tracking
  • Smart reporting

Summing up :

On priority, it is up to the government to address the capacity building amongst the lesser-endowed participants, such as the small , A digital bank and a neobank aren’t quite the same, even though they appear to be based on the mobile-first approach and emphasis on digital operating models. While the terms are sometimes used mutually, digital banks are often the online-only subsidiary of an established and regulated player in the banking sector, A neobank, on the other hand, exists solely online — without any physical branches and independently or in partnership with traditional banks. This enables them to navigate and comply with the regulatory environment.

Ajay Sai Kumar K, BBA