Today, Neobanks are considered the future evolution of banking. The fintech industry has seen the rising popularity of the concept called Neobank. To a novice person, this concept might seem a bit perplexing. But do not worry, we are here to give you a comprehensive idea about Neobanks and the scenario of India’s development in this industry. For starters and to put it in simple words, the Neo banking system is a type of online banking.
What are Neo Banks?
Digging deeper, Neo banks are a kind of financial institution that vouch to present customers with cheaper alternatives than traditional banking systems. The neo banking system relies on artificial intelligence to provide the finest and most personalised services to its customers and involve minimum operating costs. They can simply be compared to digital banks without any physical branches.
What is the distinction that separates Neo banking from the traditional banking system?
Neo banks are a typical example of digital banking. You would never find any physical branches of these banks which ensures a total absence of all the additional infrastructures and the cost which is required to sustain the employees in the traditional banking system. This is one of the basic distinctions between a traditional bank and a neo-banking system.
But, you might have a question, as many legacy banks in countries like Australia work without any branches. So, what makes a neo-banking system different? You would be able to understand this difference with our detailed analysis of the neo-banking system. Neo banks do not possess a licence from RBI. They generally collaborate with bank partners to provide you with bank-based services. It has a very smooth application procedure.
What makes Neo banks the future of India?
Experts suggest that Neo banks are the future of India. But what makes them special?
And why would and should people select them over the trusted systems of traditional and digital banks?
Here are the reasons:-
- Convenience – Neobanks involve a low number of hurdles to clear which means faster setting up of accounts and easier ways of processing.
- Smart as your cellphone- With the neo banking system, you can transfer money from one part of the world to another within a few seconds, sitting in the comfort of your home. This makes money transfer as easy as sending a text message!
- Great offers- You can question us here, that traditional banks also offer its users amazing discounts and offers, but there is a catch. They only offer these discounts to their Pro members whereas, in Neobanking, every user is eligible for getting the maximum amount of amazing discounts.
- Amazing cashbacks and reward facilities- Neobanks are also instrumental in providing its users with some very interesting cashback offers and exciting rewards.
- Easy way of paying globally– If you do possess any international debit card then you might be aware of the toll it takes to transact an amount from one side of the world to the other. With neo banks, international transactions become as easy as it can get.
- Expense tracking method- No secret that all of us, with our busy lifestyles, tend to forget about calculating our expenses daily or even weekly. With neo banks, we get someone to look at our expenses to save us from being broke at the month’s end.
Where is Indian Neo banking headed?
Today’s tech-savvy generation is slowly getting acquainted with the idea of Neo banking in India. With low operational costs and super fast service, Neo banks are gaining popularity each passing day. In India, the second largest populous nation in the world, there are sky-high expectations from Neo banking, expert reports.
According to statistics, fifty per cent of Indians fall below the age group of 28 years which suggests that these young people are citizens of Digital India as well as the Global Digital World. Neo banking caters to those individuals who wish to spend a minimum operational cost, less hazard and get a finer service than the traditional banks that are full of formalities. Neobanking also helps the MSMEs, Millennials who strive to get instant turnouts from their banks.
Indian Neobanks: A Brief Analysis
In the coming years, Neo banking will be the next go-to thing for young adults and Millenials. Let us see what would help customers to shift to the neo-banking system in Indian Neo banks.
- Cashback, discounts and exciting banking interface are a major driving force for shifting to the neo-banking system.
- The neo-banks have partnerships with commercial sites such as Byjus, Netflix and more. These sites would be giving the neo banking customers exciting rewards.
- Neo banks are supposed to get more acquisitions from technological companies like Jio and in the coming years, Neo banking would be trending all over the country and there is a great future of the neo banking.
Take Away
Neo banking is something very new in the fintech industry. Despite being new in the market, it is very steadily converting consumers to go for Neo banking. As appetizing as Neo banks sound, it is important to choose the right one, especially keeping security in mind. There are various Neobanks and among them, Akudo is the one of the most trusted neo bank in India, with the aim to make a better financial future of GenZ’s and Millenials . So you’ve got cashbacks, rewards, ease of global transaction, what more are you waiting for? Shift to neo banks today and get eligible for Pro service with minimum cost.
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