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With time Neobanks are continuing to attract new funding strategies for the expansion of the business. However, if one concentrates on spending only what is necessary while achieving profitability, it becomes the most sustainable approach. The world has seen how the new-gen digital banking created a 'turnover is vanity and profit in sanity' and later no longer cares to measure their performance just by the number of customers they have signed up.
This is a much more sustainable approach while depending on raising new funding on a daily basis using Neobanking.

How Cloud is playing the part
The Cloud plays a vital role in sustainable growth, allowing the process of 'pay as you grow' in Neobanking. This process gives the business air to breathe in and reach profitability.
Neobanks already have the benefits of having no physical branches and use automated processes to reduce the number of employees. And regard to the services, customers find it very convenient when they face issues with their card, fraud management, or the full stack. So, Neobanks need to be built from the ground up and remain highly flexible.

The strategies to get profitability
Neobanks have adopted a lot of strategic plans to gain profit. One such is in the Philippines Tonik, which focuses on the revenue potential of small loans rather than making any payments. Nothing that the average unsecured consumer loans in the Philippines can affect and determine the pricing of the double-digit loans and risk. And Tonik is an excellent example of a bank built in the Cloud. While the payment functions have been outsourced to Rader payments, it consumes microservices around the digital engagement layer. Later that gets exposed in a number of APIs to ensure smooth digital onboarding with the instant availability of the e-card linked to the account.
While Tymebank has taken a different approach in the south African market, at first, it offered a transaction bank account and saving products. This approach appears to have worked as the bank is on course to reach break-even even while operating for three years.

So, now you know how digital banking, especially Neobanking works while it is based on the Cloud. Because technology like cloud computing has always been part of the smooth framework, organization design and maintaining the sustainable design business for Digital banking.

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TheFrames Team

TheFrames Team has versatile authors to write articles on any topic. They are continuously putting their efforts to put various Series on the website. They put 3-4 articles under each series.

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