So what are Neobanks? Now here is the latest trend that has attracted smart people. If you think that you have resistance to the phrase “That is the only way to do this right!”, you need to be looking at Neobanking and the new right way of banking in all terms. Supposed you were to know that money management can be informative and technologically advanced, would you not jump to it? This is exactly what caught the attention of people 5 years back when Atom Banking was launched in the UK.
Reading through the article on Neobanking in the New York Times has been enlightening and reassuring and all that you need to know is that Neobanking has finally arrived.
You may also call it digital banking or as some prefer, App Banking. But there is a major difference between Neobanking and other forms of online banking even if it is offered by the major players in the industry.
Let’s see what the modern history has to offer on this. A Neobank is simply a bank that has no mortar and brick location or a physical presence. Basically, a Neobank is complete digital bank.
So comes the question, “how do I trust someone with no physical presence will all the money I have?”. And to answer this, major venture capitalists support the Neobanking by claiming that it is the technology and digital platforms that have stored this money.
Now, instead of locating itself physically, or accessing the E-banking services which must have been provided to you by the bank, Neobanking is just simply and completely online. Now here is the good part. All these systems are completely new and so the issues of technology, servers and hacks are almost invisible.
If you have ever heard of Monzo, this is where the Neobanking started from. Starling is another important name in the Neobanking Industry. Talk about Fidor in Germany and you would know why NeoBanking has been a success.
It is really not surprising to see that NeoBanking is actually posing a threat to the traditional banking systems. Trust us humans to go by everything that is new and with increase in technology comes disruption. Trust us to tell you that as long as innovation is disruptive it has its takers!
How do they work?
If you want to know how a Neobank works, then all you need is faith in the system because rest is all digital. Now it is a Bank right, so it has the right to make money out of lending and borrowing and that is how the bank makes the money. But if you are wondering what is unique about this, read on.
The first thing that makes Neobanks very beneficial is that there are slashed rates for customer fees. Obviously! With no employees to pay and no locations to lease, the Bank certainly needs very less money to run itself.
Here is where the role of technology is important. All the customers in Neobanking are basically served through technology.
Do we still need to say that it is much faster? If you still want to know how much money you can save, hear what Xinja CEO E. Wilson has to say on this brilliant disruption right here.
If I were to tell you what the best past is, then I am praising the customer attention that is given.
Blame it on the new trend of banking which needs to make its position in the markets!
So now that you have read about this amazing Banking concept, how about scrolling through more and seeing what’s new?
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