Do You Know About Neo Banking?

  • 10th Feb'21
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What is Neobanking?

A neobank is a sort of digital bank without any departments. Rather than being physically existing at a specific location, neo banking is completely online. It’s a wide umbrella of monetary service providers who implore today’s tech-savvy customers. Neobanks can be called fintech corporations that furnish digital and mobile-first financial explanations payments and money transfers, money lending, and additional.

Neobanking

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A Neo Bank is a new type of digital bank that exists without any branches. Neo Banks are reinventing the practices and processes associated with traditional banking. To know more, click here:

 

Internet Only Bank

A virtual bank proposes some or all the same categories of accounts and services that traditional brick-and-mortar banks do, but virtual banks exist only online. They typically charge lower fees and pay higher interest because of low maintenance. Virtual bank transactions can be checked in real-time, as they occur, rather than at the end of the banking day or the end of the month, though that assistance may also be accessible through the online branches of traditional banks. 

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Covid-19-hit neobanks rework plans

India’s burgeoning neobank sector, an investor favourite, will continue facing challenges in credit business. To know more, read the article:

What do neo-banks offer?

Neo-banks are offering solutions for expense management, investments, forex needs and so on. To know more, read here:l 

India’s Neo-Banks: What’s So ‘Neo’ About Them?

Globally, ‘neo-banks’ are essentially 100 percent digital banks, which offer services ranging from accounts, credits and payments without the burden of a physical network. To know what so neo about Neo banks, read the article:

India’s Neobanking Revolution

Neobanks offer a digital-only banking experience with mobile-first features, but their scope is limited in the Indian context. To know more, read here:

How neo banking platforms can add value in your financial life

Essentially, neobanks are like traditional banks, but with a strong digital touch and customised solutions. To know how neo banking platforms can add value in your financial life, click here:

 

Neo Banking Startups 

Neo Banks have been governing in the international market such as the US and Europe for quite some time now and have catered to an unbanked section of the nation.

For those of you who are new to this concept, neo banks are like any other banks, but the only distinction is their end to end services are digital. While some banks have commenced their neo banking platforms, several startups have collaborated with a banking licensee to launch such digital startups. 

Neobanking Revolution

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The Rise of Neobanks in India

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5 Neo Banks that are Changing the Way India Does Banking

To know about five neo banks that are changing the way India does Banking, click here:

 

How to Open Neo Bank

Neobanks are like conventional banks, but with strong digital touch and customized solutions. They do not have direct banking licenses by the RBI. They tie up with conventional banks to provide banking services licensed to them, but with digital devices. 

There are two kinds of neo banking platforms- one, consumer-facing and another for businesses. "Consumer banks emphasize on targeted services, so beyond your fixed deposits and debit and credit cards, they give you seamstress made solutions based on your transaction narrative. Business neobanks, on the other hand, furnish software solutions to help you with payables and receivables, so services like tax filing, payrolls, and expense administration become easier, which traditional banks don't offer.

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Should you open an account with a neo-bank?

Neo-banks are partnering with traditional banks to offer novel solutions by using AI and other machine learning methods. To know whether you should you open an account with a neo-bank or not, click here:

Open neo-bank to focus on lending, wealth management

Open Financial Technologies, which operates a ‘neo-bank’ that helps small businesses automate and run their finances, will now focus on wealth management. To know more abot this, read the article:
 

 

We at Opengrowth, are constantly looking for startup trends in the market. If you wish to know more about the startup ideas, let us know in the comment section. 

 

Contributor: Beauty Kumari 

An eloquent individual, love to express a myriad of topics through her words. She is ready to take any professional challenge head-on and give her best to any project entrusted to her. She wants to adversely impact through her writing and build a career out of her passion.

 

 

 

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About the author:

Neda Ali (Editor), OpenGrowth Content Team

The Editorial Team at OpenGrowth is working to provide you with the perfect place to know everything about startups. Feel free to connect to us.


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