Lately, neobanking has become a buzzword in the FinTech industry; the term has gained rapid momentum. But do we know what it’s all about?
What is Neobanking?
A neo bank is a kind of digital bank without any branches. Unlike a traditional bank, neobanks do not have a physical presence – they operate and serve online.
Neobanks are also known as FinTech firms as they provide both digital and mobile-first financial solutions payments and money transfers, money lending, and more. This is the reason why most of the businesses are showing interest in crypto-friendly neobank solutions.
Neobanks do not have any bank license of their own but count on bank partners to provide bank-licensed services.
Over the recent years, we have seen a massive change in the finance industry. With thousands of FinTech players, digital payments are embraced at such a large scale. Customers are moving from physical banks and cash to online baking and wallets.
Neobanks provide the fluidity that traditional banks don’t. They can easily sustain themselves and turn out to be fruitful.
Advantages of Neobanks
While experts may argue that traditional banking services offer reliability and a human touch, there are various benefits offered by neobanks, including:
1) Real-time tracking of transactions
Gone are the days when it would take days to reflect a transaction into your account. With instant fund transfer, you can track your financial portfolio and bank accounts in real-time, from anywhere.
2) Reduced Cost
We can’t deny the fact that with no expense on a traditional banking platform, the CAPEX can be significantly reduced which means competitive prices and better savings for the customers.
3) User-friendly interface
Neo banks are all about offering an outstanding customer experience. This also means that you don’t have to work through a glitchy net banking site anymore. You don’t have to worry about a mobile application that isn’t very responsive.
4) Smart reporting
Transactions made via neobanks are quick. The transaction details are populated swiftly, providing you with an up-to-date balance in your account, at all times. All of your transactions and payments appear on your app and, you don’t have to go anywhere else for this information.
Neo Banks: An Outstanding Revenue Generating Opportunity for Businesses
So far, we have talked about how neobanks are beneficial for customers. Now, let’s understand how businesses can generate a new source of revenue by developing their own Neobanking platform.
If you’re running a business, you often have to deal with hefty, tedious processes involving payments and disbursals. Often, you end up spending hours on manual efforts every month because of those complex infra system and multiple buggy software.
Money movement views can also be extremely tricky because of the complexity. And let’s not forget that you receive no insight into payouts to make effective business decisions.
With a neobank, you can simplify, accelerate, and supercharge your every single financial operation – from managing cash flow, accepting payments, flexible payouts, to reconciling transactions.
To Sum Up
Neo banks tend to be vocal about their principles in a way that traditional banks aren’t. Its main aim is to take the stress out of money management and help customers forge better financial habits. If you are also planning to create your own Neo Banking platform, Antier Solutions can help. Our skilled team of blockchain developers follows a forward-thinking approach to develop a robust and feature-rich digital banking platform. Buy our crypto banking solutions to build your own digital asset banking platform in a few weeks.
Schedule a free demo of our white label crypto banking software or connect with our subject matter experts to share your business needs.