To avail many of the services offered by a traditional bank or financial institutions, a customer needs to visit the branch of the bank or financial institution, where he/she has the account.
While some services of brick-and-mortar banks are now available online, technological advancements have made it possible to avail all the banking services digitally. Taking advantage of this, digital banks have come up in the avatar of neobanks.
“A neobank is essentially a bank that works completely online and provides all financial services from an online platform without any physical presence. Among its services are debit cards, loans, money transfers, payments, etc., all delivered in a digital and mobile-first environment. So, unlike other banks and financial institutions, neobanks provide their products and services completely online without any brick-and-mortar branches. Consequently, neobanks can significantly reduce their customer fees since they no longer need to invest in physical infrastructure,” said Finny Jose K, CEO and Founder, Neofam.
Apart from offering all the services online, neobanks also provide the customers innovative customer-centric services to make banking even more convenient.
Finny Jose lists some of the benefits that neobank customers get:
Round-the-clock services
A neobanking account can be opened and access to services are available around the clock without having to visit a branch; all services are accessible digitally and so they are available at all times.
Low costs
Since neobanks operate exclusively online, they have very low operational costs, allowing them to charge lower fees and offer higher interest rates on checking and savings accounts.
Quick Customer Services
Since everything is online, customers can get quick customer services, they can get 24/7 neobanks often offer round-the-clock support through digital channels and dedicated phone lines. From their homes, consumers can access all financial products and services 24/7, eliminating the need for physical visits to branches.