ow Neo banking is disrupting Traditional Banking! What is so interesting about Neo Banking then?! Read on to know more!

2. The post internet era has seen a phenomenal change in
most types of business activities. Banking is one of them.
Over the years and with the passage of time, banking has
brought about a pleasant change, the way it happens today
and with lots of simplified processes, for the convenience
of global customers.
Whenever we talk about a bank, the first few things which come
to our mind are about its services, benefits and how convenient
it is for customers. Convenience also includes logistics. In other
words, is there a branch of the bank, conveniently located to
the customer’s residence? However off late, there is an exciting
development that’s happening globally! And this is creating a
sensation everywhere. The new name creating waves globally is
Neo banking!

3. What is so interesting about Neo Banking
then?! Read on to know more!
 The emergence of Neo banking
 How does a Neo bank work?
 What are the advantages of Neo banking?

4. The emergence of Neo banking
If what we hear is true, then the traditional banking system could well be
challenged in times to come as the concept of Neo banking is keeping
customers and financial service providers equally interested. The concept of
Neo Banking which began about 5 years ago through Financial Technology
firms is a new type of digital Banking system. What adds to the excitement is
that Neo Banking does not have any branches. In a way, it looks to be
refreshingly different from the traditional Banking system as it is completely
online.
Emerging businesses and independent business professionals are seeing Neo
bank as an effective system to meet their financial requirements towards
setting up their businesses. There are significant advantages as a Neobanking
system is well-equipped with specific accounting features, including VAT and
invoicing that are basic necessities for the self-employed.

5. How does a Neo bank work?
Neobanks offer all the services which a traditional banking system does. They
include digital banking, money lending, money transfers etc. For easy
understanding, a ‘Neo Bank’ is a bank which is completely supported by a
digital and mobile platform. As mentioned earlier, it does not have any physical
branches. The systems associated with Neo Banking are also new. A good
example of a Neo Banking system would be the mobile apps that facilitate the
administration and processing of credit cards as they rely on customers having
an account with an underlying Bank and corresponding bank license, but offer
a user-friendly interface.
Neobanks don’t have a bank license of their own but largely depend upon
banking partners to provide bank licensed services. The main objective of Neo
banking is to bridge the gap between services what a traditional banking
system continues to offer and Customer Satisfaction. Compared to a
traditional banking system, Neobanks have a completely different business
model altogether. As Neo banks are designed to be customer centric and are
online, there is a considerable benefit in user fee. This is an all technology
driven system, especially for those users, who would like to literally allow
technology to take over their day to day living.

6. Neobanking is a completely data driven arrangement where customer data is
collected and used even for micro-level analysis. Operating on modernized
platforms helps officials analyse customer behaviour and how they adapt to the
Neobanking system.
As far as opening a Neobank account is concerned, it’s very easy and can
be done via smart phones in minutes. Customers are not required to wait
until their documents are verified as that happens as a parallel process.
This has attracted large amount of people, especially those people who
may be dismissed by traditional banks, because they don’t have a large
enough income to make them a creditable customer. There are some
banks who insist that customers keep the balance in their account at a
certain level. These pre-requisites are removed by Neobanking. Another
positive sign is that Neobanks offer free accounts, as well as a range of
accounts with a monthly fee, but even these are much lower than an
established bank would charge for the same service.

7. What are the advantages of Neo
banking?
Here are some key points that may interest you into
moving towards a Neo bank.
1. Simple account creation process
2. Smooth and Secure International payments
3. User-friendly interface
4. Smart reporting
5. A great Business option

8. Simple account creation process
The tedious process involved in creating an account in
the traditional banking system seems to be well
addressed in the Neo banking system, to the satisfaction
of the customers. This process is completely eliminated
while creating an account with a Neobank as you you can
do it in a couple of simple steps, right at the comfort of
wherever you are, and on your phone!And, you’ll have
the account ready in just a couple of minutes!

9. Smooth and Secure International
payments
An attractive arrangement with Neo banks is the
seamless way by which international payments can be
made through Neobank cards. This card is enough to
make international payments too and there is no need
to have a separate International Debit card. You can
use your card to make purchases, or transact while
you’re overseas, with current exchange rates.

10. User-friendly interface
All that matters are end user experience and Neo bank
works its way well to achieve that goal. With this newly
introduced mobile banking app, there is little
opportunity to face an otherwise slow on non-
responsive banking app. Neobank apps are deigned to
be user-friendly, crisp and clean which facilitate
smooth user operations.

11. Smart reporting
Any transactions made through Neo bank are
immediate and your account balance is updated
instantly and can be viewed at the bottom end of the
app.The Neo-app also provides you with an analysis of
your expenses, along with a savings goal which can be
customized to best suit your needs. This helps you
manage your finances in a much better and informed
manner.

12. A great Business option
Neo banks are proving to be of good support to new as
well as established businesses. From accepting
payments to managing cash flow to reconciling
transactions, Neo banking can provide a completely
different user and customer experience. Apart from
saving time, this exciting system can help you exercise
control on your banking transactions. In addition,
users can keep themselves updated on payment dues
and receivables at any stage.

13. Conclusion
One of the big discussions in the financial industry is
about Neo banking. In recent years, we’ve seen a
massive change in the finance industry. With a
number of financial technology players emerging in
the country, digital payments are embraced at a large
scale. Customers prefer online banking than physical
banks and physical cash. As a rapidly developing
economy, India is also moving towards adopting
financial technology. More and more people are
getting comfortable making online payments through
digital gateways like Google Pay, Paytm, PhonePe, etc.

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