With the advent of digital advancement and multiple technologies coming into existence, even the banking sector has moved ahead from its traditional way of operations.
With disruptions happening in all ecosystem, banking is not an exception. If you follow the latest tech terminologies, chances are that you have heard about a concept called Neobanking.
What exactly are these Neobanks? These are digital banks with no physical branches. Yes, you read it right. They have no physical branches like how normally banks would have and exclusively operate online. A few fintech startups i.e., startups in the space of financial technology, have come up with the concept of Neobanks for the retail customers. They also provide specialized services for your current account, that rely on high-end technologies like Artificial Intelligence and Machine Learning.
In India, Neobanks are not provided with an official banking license. Therefore, they depend on traditional banks to carry out their operations. They work in collaboration with the local banks to offer their services to the customers. Neobanks are also targeting markets that are unreserved. If you are wondering whether this is meant for your business or not, then read on to know the reasons that you can consider to get started.
Here’s presenting five reasons why businesses should try Neobanking:
- More cost effective than the traditional banks
Neobanks are a cheaper alternative than our traditional bank accounts. As the charges are lesser, small to medium businesses are particularly interested in these offerings, making the adoptions rates higher among these businesses. Since these banks have an online presence only, the money spends on resources such as offices, etc. is not applicable here which enables them to offer low-cost services to the customers.
- Unified platform for all your monetary transactions
Neobanking puts together all your banking needs at one place, and on a single user interface. You can carry out multiple operations from a single platform.
- Provides a seamless banking experience
The online banking portal is user friendly, flexible and has robust APIs. You can view your financial summary, their patterns, etc. The options provided on a single platform are varied.
- Convenience and time-efficient
A very handy feature is that this banking is available 24*7, unlike regular banks where the doors are closed at a fixed time.
- Provides you the best of technology for your banking experience
The technology used here helps businesses to identify any errors, track their finances and you can even schedule al your payments and execute them as per your preference.
Just like every other field, the world of banking is witnessing major breakthroughs making it much or easier for businesses to access their transactions and reduce the complexities associated with it. Neobanks are one such technological wonders that have disrupted the banking ecosystem and made things much easier.
Disclaimer: The above article is subjective and generic in nature. It is purely for informational purposes only. It is recommended not to substitute this article in place of a professional advice.