Neo-Banks can be called Fintech firms that provide digital and mobile-first financial solutions payments and money transfers, money lending and more. These banks don't have a bank license of their own but count on bank partners to provide bank licensed services.
As the financial landscape is shifting towards customer experience and satisfaction, a gap has developed from what the traditional banks offer to what customers expect. And, Neo-Banks are making an attempt to fill that gap by offering higher interest rates and lower fees.
Business perspective:
• The Cost of operations and management gets reduced.
• Customer demands are met with an enhanced customer experience.
• Additional resources get invested in launching new products and in expansion to different geographies. This also helps facilitate doorstep delivery of essential banking services to rural India.
Customer perspective:
• Financial transactions become easy and convenient to perform from any location at any given time.
• With a greater reach and equal opportunities for all the people, everyone gets to avail all the banking facilities.
• Standing in queues with a token in hand is a thing of the past and now services are available at the click of a button.
The Features of a Neo-Bank:
An account with a neo-bank can be opened in less than 10 minutes with minimum paperwork, and will get a virtual debit card for use immediately. Additionally, access to global investment opportunities, easy international student banking and low-cost global spending etc are immediate services of a neo bank. The key features are:
This story is from the February 2023 edition of BANKING FINANCE.
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This story is from the February 2023 edition of BANKING FINANCE.
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