Will Be Good For Neobanks

Neobanks have revealed a critical need for innovation in the conservative banking space to improve the current financial system and make it more accessible and easier to use. Neobank will now appear to be reshaping the banking landscape and significantly changing the way financial institutions will serve customers in the future.

Good for neobanks

Advantages

  • Neobanking is disrupting the conservative financial services landscape by offering more convenience, accessibility and mobility to users around the world. New generations of consumers are particularly focused on application-based services, and banking services are no exception.
  • Neobanks want to win consumer loyalty through a great product offering, a personalized approach and a high-quality experience.
  • A recent Plaid’s Fintech report states that nearly 30% of Americans use some form of digital-only banking, and EY research shows consumers worldwide have an ongoing experience with a non-bank.
  • There are at least a few ways of neobank are trying to fill in the gaps with what was missing.

Simplicity and speed

Opening an account with neobanks online only takes a few minutes. Often all you need is your ID.

Easy accessibility

So anyone can open an account in this bank. The neobank space has also become more crowded, with some entrepreneurs raising millions specifically to expand their neobanking business into new markets.

Prices

Since the overhead costs of neobanks are significantly lower, this reduces overall fees. Some services may be free, both for personal and business accounts.

Mobility

Neobanks platforms and applications are designed to allow you to manage everything related to your account online.

Worldwide reach

Another outstanding feature of neobanks is their openness to the international market.

Unique features

Each neobank has some specific feature that sets it apart from other players. For example, Tide offers free merchant accounts and Revolut provides cheap international money transfers.

Focus on the gig economy

Some neobanks aim to create a banking model that helps small business owners and gig workers access banking services.

Addressing personal values

Some neobanks position themselves by providing benefits to specific customers and communities. GoWomen, aims to be the first neobank for women of color.

Conclusion

Neobanks have grown in popularity. The same trend can be clearly observed in other regions and on a global scale. According to App Annie data, more than 264 million neobank apps were downloaded globally.