Future of Neobanks 

 

The world in which we live is technology driven. The enhancements in the technological world are focussed on making human life simpler and more convenient. To assist in this regard, many finance base technology starts or fin-techs are diverting their attention towards improving the banking sector. With the help of neobanking, the banking sector is evolving. 

Future of neobanks is more so dependent on how the fin-techs harness the power of data and AI to increase the awareness of their existence and widen their customer base. With the way consumer preferences are shifting towards convenience, the future of neobanks looks better and better every day. It is a golden rule of business that customers drive the market; fin-techs have noticed that. The future of neobanks is on the rise. The pitfalls of traditional banking are exposed by how seamless banking has become with the help of neobanks. Pandemic also helped pave a way for the future of neobanks. With everyone being under lockdown, it helped create a future of neobanks. 

Why is neobanking the future of banking?

There comes a time in any industry where a trigger point sets it up for a change. Neobanking is one such trigger that is driven by technology that drives change in the banking industry. 

Neobanking bridges the gaps in the traditional banking scene by improving on the services it provides. It also provides tailor-made services within the comforts of your house. Neobanking lays down a benchmark on making customers’ life more simple and more convenient. It provides services like online banking, expense tracking, expense manager, convenience in opening the account as well as operating the bank account. They leverage technology, AI and machine learning to track consumer behaviour and provide them with better services.

Neobanks have an online presence and do not have a physical presence. This helps them reduce their costs dramatically. Since they are digital they serve the more neglected classes of consumers like the MSMEs and retailers. Since their operating costs are lower; it also helps them reduce the customs fees. One can say that they transfer the benefit of lower costs to their customers which also proves their consumer-centric nature. 

The future of neobanking seems to be quite positive from what the statistics depict. The acceptance of neobanks is on the rise among many consumers. Neobanks provide one of the major solutions to the issue every consumer has faced more than once in their lifetimes. Most consumers do not like waiting in long queues or waiting for long hours before their services are rendered. Platforms like open money act as neobanks and provide all the services that traditional banks perform. The comfort factor is just scratching the surface of this untapped market that has great potential. For a business, it is clutch to have an option of seeing your transactions happening in real-time. As a business owner or even a common person, saving time is always a big win. This helps retain customers. Hence, this is why neobanks are the future. 

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