In this glided age of technology, human life is becoming more technology-centric. From ordering food, applying for a job, to do a financial transaction, it is now increasingly digital than ever. In this digitized era, people are more inclined to save their time, so paying a regular visit to the bank is the last thing they would want to do. As technological disruptions now have paradigm-changing solution like FinTech, insurtech, and regtech, banking options has now changed for good! And Neo Banking is one such option, a digitally operated bank that is gradually heralded as the future of banking.
Difference between Traditional banks and neo bank
The past few years have taught us that it is digitalization that you should work with.
Because of this pandemic and digitalization, the traditional banks have failed to retain their customers. On the other hand, the evolving customer expectation has given rise to a new way of digital banking- Neobanking. These financial platforms operate mainly online, and it does not have any brick-and-mortar branches. But provides all sorts of banking services and that too more digitally. By using the technologies like AI, cloud computing, and automation, Neobanking is a whole new world with highly personalized services at lower costs.
On a quick note, in India, Neobanks have to shake hands with traditional banks to get a license as RBI doesn't allow a hundred percent digital bank at present.
Promoting quality customer Experience
Today financial landscape has shifted towards customer satisfaction and experience, and digital banking options like Neobanks are now capable of leapfrogging the gaps in conventional banking by providing a round table digital service. As neo banking is mobile-friendly, they are the new favorite of millennial and Gen-Z customers. By swearing on automation, Artificial Intelligence, and blockchain, neo banking is now able to offer innovative solutions, better customer experience, and faster response time. And who doesn't want this kind of seamless banking service in their life?
Secure banking is now easy
Since neobanking operates exclusively online, you might worry about what kind of online threats it might face. But with cybersecurity at the forefront, Neobanks aims to increase security, meeting customer safety and satisfaction. Security features like biometric verification, encryption, and Neobanks are safe. So, you can have access to your bank account and financial information anytime and manage your money efficiently without ever stepping inside a bank branch.
On a final note, Neobanks have the potential to be more than just the latest buzzword in the fintech community. And in the future, the banking sector will witness the influx of Neobanks that will not only change the face of traditional banking forever but digital banking as well. As technological transformations continuously disrupt the world, Neobanks, too, would one day turn the table around for traditional banks and become the future of banking.