Neo banks do not have any physical branches as they are digital and work online. They are customarily mobile-first, making use of technology to reduce operating costs and allow a user-friendly interface.
Although neo-banks assume a mixture of operating models, these fall under 3 primary categories:
- Non-licensed FinTech firms cooperate with regular banks to have a mobile/Web interface and a wrapper around their partner banks’ goods.
- Traditional banks are beginning their digital initiatives.
- Licensed neo-banks
There is a variety of top commercial industry software providing similar or smarter profits at competitive costs. By preferring the neo-apps that best satisfy your business needs, these smart apps can help your operations.
Some FinTech start-ups are launching neo-banks for retail customers in India to make trading easy, convenient, and significant. They collaborate with traditional banks and present better results using technology like artificial intelligence (AI) and machine learning (ML). Originally, only business customers were targeted by the neo-banks founded in India, including Razorpay and Open by Open Financial Technology.
Neo banks have produced resources that assist in moving quickly and easily and implementing modifications. The bonuses of online banking have pushed users globally to accept neo-banks.
The neo banks’ features include usefulness, cost-effectiveness, various financial and banking functionalities under one umbrella. FinTechs build techno-scientific contributions concentrating on blue-collar employees and MSMEs’ under-served needs, which is the progressive way.
Neo banks have transformed the market model of traditional banking. Neo banks grant more extensive choices and better user experiences with the following characteristics:
- The user can start a new online account in just a few minutes.
- Linking existing bank accounts.
- Accept payments instantly with integrated payment gateways.
- Pay invoices through several options.
