81. What is so 'Neo' about Neo Bank?
Neo bank is the new thing in the market that is attracting investors from across the globe. Gone are the days of waiting in the bank to transfer or deposit money, digital banking has made our lives very easy. Banking has become convenient now. But what are Neo Banks and how are they different from digital banking?
Neo banks are taking the concept of digital banking to another level. Digital banking is making transactions on the internet without having to visit a physical bank branch. While the concept is almost the same, it is conducting bank transactions online. But, there is a major difference. Banks around the globe have made digital banking available for their customers based on their needs considering the evolution in terms of digital usage and consumption. The branches for these banks are available offline as well. Neo Banks on the other hand are only present online. It takes away any type of physical contact with the customer. All the procedures from opening an account to making all the transactions are done through digital. Neo banks are in progress globally, but the rules and regulations in India do not permit 100% digital banking. Following are some of the advantages that gives neo banks an edge over traditional banking:
Better User Experience: Neo banks are based on 100% digital transactions, this makes user interface and how the bank leverages that to provide the best user experience their main focus.
Less Cost: Because of the absence of physical connectivity there are no branches for neo banks. This lessens the cost on the customer’s part as they don’t have to visit the branch again and again. This also reduces the cost drastically for the banks as there are no leasing and maintenance expenses for the branches.
Convenient: Neo banks work through digital and the internet is easily accessible now from almost everywhere. Because of this banking is possible from anywhere and at any time.
This is an unconventional method of banking and may seem a little daunting at first as financial transactions are prone to risk. But, with the advancement in technology, neo banks are secure and extremely convenient. They are attracting the investors and can soon become big in the market.
Neo banks are taking the concept of digital banking to another level. Digital banking is making transactions on the internet without having to visit a physical bank branch. While the concept is almost the same, it is conducting bank transactions online. But, there is a major difference. Banks around the globe have made digital banking available for their customers based on their needs considering the evolution in terms of digital usage and consumption. The branches for these banks are available offline as well. Neo Banks on the other hand are only present online. It takes away any type of physical contact with the customer. All the procedures from opening an account to making all the transactions are done through digital. Neo banks are in progress globally, but the rules and regulations in India do not permit 100% digital banking. Following are some of the advantages that gives neo banks an edge over traditional banking:
Better User Experience: Neo banks are based on 100% digital transactions, this makes user interface and how the bank leverages that to provide the best user experience their main focus.
Less Cost: Because of the absence of physical connectivity there are no branches for neo banks. This lessens the cost on the customer’s part as they don’t have to visit the branch again and again. This also reduces the cost drastically for the banks as there are no leasing and maintenance expenses for the branches.
Convenient: Neo banks work through digital and the internet is easily accessible now from almost everywhere. Because of this banking is possible from anywhere and at any time.
This is an unconventional method of banking and may seem a little daunting at first as financial transactions are prone to risk. But, with the advancement in technology, neo banks are secure and extremely convenient. They are attracting the investors and can soon become big in the market.
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