It is no secret that Neobanks are changing the financial world drastically. They are indeed on the rise. In fact, a study by Boston consulting group has shown that Neobanks are growing three times faster now more than ever than the traditional banks. So, what is it that driving their growth? And how can you get in on the action?
In this piece of writing you will get to know everything about building a Neobanks account- from features to developmental costs required. So, let's dive in, shall we?
The concept explained!
Before you jump into the details, you must possess the thorough idea of what a Neobanks is? A Neobanks is a way of digital banking that offers exclusive service through mobile app or online. There is some difference between traditional bank and Neobanks.
Neobanks are solely operated online therefore, does not have any physical branch. This facility makes them much more convenient for the customers who detest to visit the bank physically.
On the other hand, Neobanks have lower fees unlike the traditional banks. The reason is, they don't have the same overhead cost while running a physical branch.
Key benefits of neobanking
People tend to choose the things that comes with numerous benefits and neobanking is no exception. For example, convenience, it is one of the defining features of Neobanks. You can choose to deal with your banking requirements anytime, anywhere. Next, when it comes to talk about agility and innovation, Neobanks are the best. Because they don’t have any legacy system or complicated process like traditional banks, so they can move faster to implemement new technologies and offer new services.
One of the key benefits that you can get from the digital banking like Neobanking is that, they have openness to the international market. As these banks are not bound by any regularities like traditional banks, that means they can offer their services to the customers in any country.
Some of the popular examples of Neobanks
There are some of the best examples of Neobanks available in the market. These are Monzo, it is a UK-based Neobank first opened its door in 2015 by Tom Bloomfield, Jason Bates and Paul Rippon and Jonas Huckestein. Monzo is also known as "challenger bank" and is mobile-based. It can be opened in under eight minutes and offers multiple range of features. From in-app spending tracking, notifications and budgeting tools, Monzo can be your best pal on the longer run. Other popular Neobanks are Chime, Revolut, etc.
To wrap it up, Neobanking is the future of banking. And gradually it is changing the financial industry as a whole. Although, there is time before it becomes fully replaceable, these banks can be a tough-nut to crack in this competitive market. And the truth is these kind of Digital banking offer the Gen-Z a flexible and convenient banking solution that they can handle it with ease.