What is a Neo Bank and how is it different from a regular bank?
Virtual banks are referred to as neo banks. They are the banks that are solely accessible via the internet. The bank does not have a physical location and is entirely digital. Neo Banking is a method of providing a full banking experience using digital platforms such as a smartphone app.
Neo Banks: Facts-
Neo banks are able to deliver solutions in ways that traditional banks are unable to. Their main goal is to provide a pleasant consumer experience.
1. These banks are less expensive and faster.
2. Neo banks are able to use a single network to manage their whole financial portfolio.
3. In a nutshell, Neo Bank is a type of digital bank that does not have any physical locations.
4. Neobanks are fintech companies that offer digital and mobile-first financial services such as payments, money transfers, and lending.
5. While neo banks do not have their own licence, they do have banking partners who can provide licenced services.
6. Traditional banks are facing increasing competition from the digital world. With neo banks rapidly expanding, their cutting-edge technologies are attracting customers who want financial services to be simpler.