6 Reasons Why You Should Make the Switch to Neobanking

When you think of the word “bank,” does endless paperwork, confusing jargon, frustrating waiting times, and unavoidable branch visits come to mind? It doesn’t have to be that way. If like most millenials and Gen Z, you want to do all your banking on a seamless smartphone app, neobanking is the perfect solution for you.

Neobanks are digital-only, fintech firms that provide banking services through apps, websites, or other online platforms.  Ease of access through smartphone apps is not the only perk of neo banks, your traditional bank may have an app as well. Innovative features, cost savings, and cutting-edge fintech solutions are the USPs of neobanks.

Let’s take a look at why you should make the switch from traditional banks to a neobank:

1.  Faster than traditional banks

Speed is amongst the top priorities of most neobanks. With the use of innovative strategies and technology, they cut down the lengthy processing time that traditional banks take and speed up the operations.

For instance, on a neobanking app, you can open an account in just a few clicks. The same process with a traditional bank may take a few tedious hours and require you to visit the branch.

2.  Great user experience

Neobanking apps and online platforms are made for the new age tech-savvy customer. They typically have a clean, highly-responsive, and user-friendly design. Many customers find the websites or apps of their traditional banks glitchy and slow. You won’t have to deal with that with a neobanking platform.

3.  Save on many fronts

Neobanks are often more cost-efficient than traditional banks. Since they operate online, they don’t bear the overhead costs and expenses needed to maintain branches. That’s why, they charge lower fees and offer a high-interest rate on savings to their customers. Other perks may include little to no monthly maintenance fees, zero-balance accounts, and no commissions.

4.  Innovative features and tools

Cutting-edge features and tools are what make neobanks stand out. To stay one step ahead of their competition and traditional banks, most neobanks ensure that their customers experience the latest trends in fintech.

Aside from the typical features of online banking, you might also find smart reports, spending insights, savings tools, tracking tools, and even online trading options. Your neobanking app can double as a financial health and money management app as well.

5.  Convenient for travellers

Most neobanks offer incentives for travelers which may include low or zero foreign exchange markup on international purchases, overseas ATM withdrawals, and fund transfer fees. Your neobank app may also have the option to load your account in your local currency and make transactions in the currency of the country you’re travelling to

Neobanks are designed to be travel-friendly. So, whether you want to study abroad, be a digital nomad, or go on a wanderlust, you can rest assured that they will meet your banking needs on the go

6.  Neobanks serve underbanked areas

The needs of low-income customers and small businesses are often neglected by the traditional banking system. That’s why this segment often remains underbanked. Neobanks bring in financial inclusion by bridging the gap by charging low fees, providing zero balance savings accounts, and speeding up processes. Customers also find neobanks more transparent than traditional banks and without hidden fees.

Traditional banks also have limited opening hours and branches that may need travelling a long distance for some people. With neobanks, there is no hassle of visiting the bank or the need for face-to-face interactions. You can do all your banking on your smartphone. That’s why many rural and low-income communities and small businesses are turning to neobanks in India.

Neobanks meet the digital demands of the 21st-century customer. They have the potential to revolutionize the banking industry that has seen little innovation in the past decades. It’s time you join the movement too!