Money 2.0 Conference - Frequently Asked Questions(FAQs)

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How Are Neobanks Transforming The Fintech Industry?

The need to break geographical boundaries to conduct transactions more efficiently is why the financial sector is going through mass disruptions. Since digitalization has taken over the world, we see innovative facilities and industries forming. In such a scenario, the conventional means of banking are no longer providing solutions for the modern age.

According to several global finance events, neobanks are building digital bridges to link multiple enterprises and consumers to digital financial services, especially in regions not sufficiently covered by traditional banking operations. But what exactly is a neobank? And how can it transform the fintech world?

What Is A Neobank?

A neobank is the latest version of a banking system that operates on digital modes by using AI-based tools and technologies. The goal? To offer unconventional banking services to customers.

A neobank is entirely digitized, which means it has no physical branches, providing services via mobile applications. They provide the user with ways to create an account quickly, manage their funds in real-time, and make online transactions from anywhere.

From our insurance and finance conference’s Spring Edition, we learned that neobanks should not be misunderstood as digital banks. These are two different sectors of the fintech industry. A digital banking system is the extended facility of physical branches of a bank, providing net banking, digital payments, etc. On the other hand, neobanks don’t have any physical branch and can reach out to remote areas where constructing a physical unit is not easy. In this blog, we will quickly review the top benefits of neobanks:

Affordable Operations

Neobanks can be operated on lower budgets. Since there is no need for a physical branch, it also does not require human resources and various other physical facilities. This expense can use for introducing innovative technologies and providing frictionless online services.

Well-Organized Access

Unlike traditional banks, you don’t have to visit the physical outlets of banks and stand in queues for simple tasks and procedures. Neobanks just require a smartphone and internet connection, and you can tap into any service with a single click from anywhere in the world.

Improved International Payments Modes

The reason why neobanks are getting hyped and outperforming traditional ways of banking is that they provide simple ways to do international transactions. We can make payments anywhere in the world, and it doesn't have extra charges like traditional banking.

Speed And Use Of Technology

Neobanks use AI-based technology for consumers, which can offer personal attention to every consumer. You can get services based on your personal preferences and needs at a particular time that is not present in traditional banking. Neobanks can run with a customized approach, while conventional banks operate with a generalized approach.

Conclusion

Neobanks eliminate physical boundaries and can provide services to any part of the world in real-time. There is a need for a digital society that will connect people in unimaginable ways. For more information, attend the Money 2.0 Conference to gain more insights from money experts on neobanks and alternative finance models this winter!

06/24/2022 - 10:54

Vinayak Joshi

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vinayak
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Vinayak Joshi
Author Bio

Vinayak Joshi is an integral part of the Money 2.0 Conference team who is curious about the world of finance. With a keen interest in cybersecurity, internet financial fraud detection, scam investigation, and digital forensics, his passion lies in helping people traverse the internet securely. A self-declared anti-spam and phishing expert, when Vinayak is not working, he loves to read crime fiction, write, and play basketball.