Neobanks are making a sweet place in the hearts of the people.

Banking is more simplified than ever, with the blooming of neobanks. The advantages, facilities, and conveniences of neobanks are attracting huge masses and promoting its increased usage among them.

Neobanks have a 39 million user network globally, and a skyrocketing market of $18.6 billion (as of 2018).

The neobanks are constantly eyed upon for more of the recent advancements and options, that could prove out the neobanks to be a better replacement of traditional banks.

What are the Neobanks?

A heated-up word in the fintech industry, Neobanks are relatively newer in the market. But these are rapidly unveiling their potentials and establishing their presence with huge popularity worldwide.

Unlike digital banks, neobanks are the banks that solely exist online without any physical branches available. 

A neo bank does not own a banking license. Rather, it relies upon its traditional banking partners for providing the licensed services.

Massively aiding the SMEs with multiple cash management views, payment gateways, and software for invoicing, the neobanks find an edge over traditional banks.

A major milestone in the cashless transaction motive of the countries, Neo banking provides reliable cashless transaction methods that are overwhelmingly accepted by the customers.

Advantages of Neobanks over Traditional Options:

Stress-Free Account Creation

The tedious paperwork and the seem-to-be never-ending waiting period are the factors that push the customers away from creating an account in the traditional banks.

Thanks to the neobanks, that the customer hustle is omitted and the hectic banking procedures are substituted by just a few clicks, and an all-new bank account is handed over to the user, which is almost instantly fully operational and equipped with enhanced banking facilities.

Transparent Bank

Any additional charges or taxes are readily made available to the customers who use neobanks.

The highly transparent mechanism of the neobanks won the trust of millions of users with the assurance that no extra penalties will remain unveiled from the users.

Simplified International Payments

The traditional bank cards are not much friendly for international usages, and they are also not supportive of international transactions.

In an attempt to transact internationally, the bank customers need to appeal to their corresponding banks, asking for the card up-gradation and making it fit for international purchases. 

But the case is not the same with neobanks.

With neobanks, the customers are provided with gateways that are friendly with international purchases, or overseas money transactions.

Friendly Interfaces

The neo bank apps or websites are responsive, glitch-free, and easy-to-use.

Unlike the net banking portals, the customer is not hung in between the transaction and poor website that neither is fast nor is friendly with the user.

The final verdict

Better than traditional or digital banking systems, the neobanks are successful initiatives of the trending cashless transaction drive and mobile-centric services.  

Aided with reliable, secure, and transparent services, the neobanks are getting renowned for providing better than ever gateways and options that are making the customers enjoy the banking services.

With so many advantages and a huge fan base, the neobanks have the potential to take over the market of traditional banks and may emerge out as one of the most powerful revolutions in the history of banking systems.