Neo Banking – A Complete Digital Shift in the New Era of Banking Services

Gone are the days when people needed to visit the banks and wait in a long queue even to know their financial transactions. In the present day, the banking sectors are smarter, responsive, and tailored. Needless to say, digital transformation is one of the factors that changed the whole scenario. In this regard, Neo banking is a fine example of digital transformation that is introducing next-generation banking services using cutting-edge technologies.

Literally, Neo Banking is a complete digital shift in the new era of banking services. It is better regarded as new-age banking that is replacing the traditional form of banking by storm. Indeed, Neo banking is filling the gap between inadequate banking services and customers’ high expectations as most traditional banks fail to provide necessary financial support to SMEs such as providing a payment gateway, an invoicing software, and multiple views of accounts management.

What Is Neo Banking?

Neo bank, also called Fintech Firms, is a digital bank with no physical branches, introduced with the aim of providing a smooth customer experience. Instead of being physical, its operation is entirely online. So, from managing multiple bank accounts and money transfers to offering financial support to SMEs, Neo banks offer complete digital and mobile banking solutions. Though Neo bank doesn’t own any license, it provides licensed banking services with the collaboration of its licensed bank partners.

Why Choose Neo Banking?

Since Neo banks are 100% digital, they provide a wide variety of benefits to customers. Let’s take a look at some of its key advantages.

Account Creation in a Few Simple Steps

Account creation in traditional banks is often thought to be time-consuming because of its mandatory physical presence and lengthy process. Though there has been much improvement, yet the inconveniences aren’t completely gone. With Neo banks, there are no such hiccups. As it solely exists online without any physical branches, one can create an account with a couple of steps, as per their convenience with a smartphone, tablet, or PC.    

User-Friendly Interface

Unlike traditional banks, neo banks offer an enhanced user experience using state-of-the-art technologies. That means you don’t have to work with slow-loading net banking websites anymore. Neo banking is accessible with user-friendly mobile applications and responsive websites that very much suit consumers’ specific requirements.

Seamless International Payments

Not all banks’ debit or credit cards are enabled for international transactions. And if you don’t have one like that, either you need to take a new card that allows international transactions or make a request for an upgrade. It goes without saying that the process can be a bit lengthy even though traditional baking services have been very much improved.

Unlike traditional banks, Neo banks allow you to transact internationally. You can use Neo bank cards to make purchases or transact while you are on an international trip, as per the current exchange rate.  

Negligible Service Charges

As Neo bank is fully digital and has no physical infrastructure or ATMs, it cuts a lot of resources. Thus, the benefits pass to the consumers. They don’t need to pay on withdrawals or any other annual or monthly maintenance charges. Neo bank offers basic services free of cost.

Smooth Finance for MSMEs

Businessmen often need to deal with payments and disbursals. Needless to say, it takes them hours to manage and control their transactions. Neo-banks reduce manual efforts by simplifying the entire process and providing unified platforms to monitor and control entire transactions. Furthermore, Neo-bank offers services like taxation, budgeting, and accounting to MSMEs at a lower cost.

Advanced Security Features

When it comes to digital transactions, security is the first thing that pops up in the user’s mind. So, before you worry, we should tell you that Neo Bank applications come with robust security features like two-factor authentications, biometric verification, role-based accessed control, encryption technology, and more. These security features are implemented in the Neo bank application in order to ensure compliance with anti-money laundering laws, customers’ privacy, and prevent virus/malware attacks.

FAQs

Q.1 How does Neo bank work?

Neo banks are customer-oriented digital banks that provide personalized and customized services to customers. As they are 100% digital, technology plays an important role in its operations. Neo banks’ operation mostly depends on the decision-making model that is driven by data-based decisions. They collect and analyze data, understand the patterns, calculate the customers’ behavior, and then make predictions and produce the results.

Q.2 Can I manage multiple bank accounts with Neo bank?

Yes, you can manage multiple bank accounts with Neo bank. This can be multiple accounts of the same bank or accounts of different banks. To link the various accounts of different banks, your Neo bank service provider must be connected to the licensed banks.

Q.3 How can I create a new bank account with Neo bank?

You can open a new account in a few steps with neo banking. For this, you need to open the payment setting in the dashboard and choose “open new bank account”. Neo bank allows you to open a new account in the same bank it is licensed with.

Q.4 What financial services are offered by Neo banks?

Various financial services are offered by Neo banks:

• Opening new accounts
• Payment and money transfer
• Money lending
• Additional services like taxation, budgeting, accounting etc

Q.5 Is Neo banking Safe?

Neo banking is completely safe as its applications have several built-in security features including two-factor authentication and advanced role-based access control to prevent unauthorized access and ransomware attacks in its applications.

Q.6 Can I make international transactions with Neo Bank?

Yes, you can make use of your Neo bank card to make purchases or transact while you are out of the country with current exchange rates.

Q.7 How Neo Banks are different from traditional banks?

Traditional banks have physical branches, whereas neo banks are fully digital (without any branches). Traditional banks charge many additional fees which they collect from customers, whereas neo banks have lower service costs and they are transparent. Neo banks may have no, partial, or full banking licenses, whereas traditional banks must have a full banking license.

Also, Neo banks’ customer support relies on chatbots and AI, whereas traditional banks’ customer support relies on in-person or telephone.

Q.8 Why Neo banking is growing exponentially?

Neo banks offer many benefits to customers which traditional banks don’t. That’s the reason Neo banks are growing exponentially. Some of the key benefits of Neo banks over traditional banks are as follows:

• Hassle-free account creation
• User-friendly interface
• Seamless international payments
• Advanced security
• Lower cost
• Smooth finance for MSMEs

Q.9 Can I contact Neo bank customer support?

Yes, you can contact Neo-bank customer support via phone, IVR, email, online chat, in-app chat, WhatsApp, etc.

Q.10 How Neo banking is helping MSMEs?

Neo banks support MSMEs in various ways like it provides a unified platform to help MSMEs make, control, track, manage and analyze all transactions from a powerful dashboard. It also lets business owners manage and track money movement to vendors, customers, employees, etc. through AI-powered CRM.