what is a neobank? All that you must know about it
recently the word neobank has got kinda hot in the fintech fam. which makes us wonder, what exactly is a neobank? to put it simply, neobank is an online bank. you won’t be able to find any physical branches of these banks as they operate entirely online.
neo bank vs traditional banking?
traditional banking is the old process of banking where we had to physically visit the bank to get any task done. the banks have different branches which deal with your banking issues. they have also set different ATM machines throughout from where you can withdraw some cash.
rumour has it, neobanks are slowly taking the fintech industry by storm. of course, the smooth application process and quick approval prove it all. imagine doing all your bank work from your couch, sounds dreamy doesn’t it? you can kiss those days goodbye when you had to stand in a long tiring line to get the work done. neobank vs traditional bank has a clear winner.
although neobanks don’t really have a licence of their own, they collaborate with bank partners to give the bank based services. now that we have this trend of stay at home, neobanks are getting more attention as they’re filling the gap of customer satisfaction that traditional banks usually fail to deliver.
and wait, that’s not it. digital banks also make sure to give out new offers every time you shop. The features are enhanced, heck it, in some neobanks you can also get more interest on fixed deposits than your existing bank. surely makes us want to know more about it, no?
so umm, okay we got what is a neobank but now the question is
why choose neobank?
there are one too many reasons why people are shifting towards neobank and well, they’re all legit. it all started when demonetisation smashed our faces. folks started carrying lesser money in their pockets and more in their phone. the craze for digitalisation went so much that the idea of a completely digital bank was generated.
so without any further ado, let’s take a look at 6 reasons why people opt for neobank-
1. it’s smarter
one thing that we’re sure of is that neobanks are quicker, more efficient and smarter than any physical bank. you can legit sit at home and transfer money from one part of the world to the other without having to hit the bank. which explains why genzs are inclined towards it.
2. easy sign-up & approval
isn’t it plain straight bugging when you are standing in a long long line to open your account but voila! it’s lunchtime so the staff just went on a short (let’s say, 2 hours) break. however, when you’re using a digital bank, you just download the app, complete your KYC process via video call & boom, you’re done.
3. better user experience
having any payment issues? or wanna block your card in case of any misplacement. you can do it in a jiffy directly by calling the customer support centre of the banks. YES! from the comfort of your couch.
the customer representatives are super helpful and will find out the best solution possible in the blink of an eye. apps are designed in such a manner that you won’t even have to waste too much time calling.
4. amazing offers
although this is something you can also get in your traditional bank. however, you need to be a pro member of that particular bank to get the offers. neobanks are not only targeting a smarter bank but they are also ensuring that their customers get the best offers, pretty much on every platform possible. the best part is, you don’t have to be a platinum or any chic member to avail of the offers.
oh and we’re sorry, did we forget to mention the amazing cashbacks and rewards that you get after making the payment? cause it’s so bright that you might wanna cover your eyes. what is a neobank? shall we just explain it in a word? MAGIC! ♀️
5. seamless payments across the globe
if you have a debit card from a traditional bank, you’re already aware of the hassle you have to face while making an international payment. you have to upgrade your card, request the payment and then it gets transacted.
however, when you’re using a neobank’s card you can make the payment pretty much anywhere. without getting upgraded and sh*t. you can just hit a button and send money anytime, anywhere. so what did we say about neobanks being smart?
6. dope expense tracking method
come on, let’s accept it. with the busy lifestyle and our spending habits, we’re all kinda broke at the month-end. and gone are the days when our ‘dear diary’ heard about our expenses. in times like these, neobanks come as the superhero.
you can watch your expenditure, savings and pretty much everything in the passbook section. you can also create an auto-deposit which will automatically put out some money whenever your salary comes. this way, you’ll never end up spending more than you’re supposed to.
Umm, wow! I’m interested. So the next question’s gonna be-
Do you know, how exactly does a neobank work?
so like, you used to go to the bank, fill out a form wait for some days until your card arrived. it’s only after that you can start making the transactions right? also not to forget how we had to visit the bank for every small change that we had to get. or the deposits that we had to make.
times have changed now and there’s no better way we can prove it than giving you the example of neobank. you can simply download the app, complete the verifications within seconds and start transacting via the app right away. it’s only a matter of days before you will get your card parcelled to your home. And voila! you can also start making card transactions anywhere you like. after you’ve received the card, the process remains pretty much similar. just that you can explore many many features that different neobanks are coming up with.
wrapping it up,
we’re hoping by now you have a clear answer to ‘what is a neobank’ and what are its advantages over traditional banks. there are many more perks of a neobank but here’s the twist, we want you to witness it yourself.
Teen folks looking out for the smartest neobank, come here
are you someone who’s looking out to witness the magic of a neobank? then we have something for you. make sure to check out the akudo cards and take a step towards financial independence. we have amazing offers and cashback for you teens, making shopping a bit more fun. we really hope you guys are ready with a long cart cause we surely have a huge cashback plan ready for you.
so are you guys ready to manage your own money? After all, why should adults have all the fun? and don’t forget to help your friends in understanding what is a neobank. Just forward this article to them
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