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Neobank is gradually capturing the banking market sphere by catering to the high-profile demands of tech-savvy customers.
FREMONT, CA: Banks have acted as intermediaries that lend, protect, and invest money for the mutual advantages of stakeholders as well as customers. With the advancements in technology, banking institutions are evolving to meet the needs of modern customers. Mobile banking is also adding to the emerging banking services that take the user experience to the next level. Customers are increasingly moving towards app-based banking services and are using most of the services without the need to visit a physical branch. Neobanking is a revolutionary development in the sphere of mobile banking. Neobanks provide a mobile-centric, purely digital customer experience that is lucrative to digital-savvy consumers.
Typically, a Neobank completely eliminates the need for the existence of a physical branch. Instead, customers leverage banking apps for all the services. Banks, in turn, save significantly on the cost of maintaining service staff and physical branches. Thus, the focus is on offering cost-efficient and user-friendly services. Moreover, Neobanks are more concerned with the needs of modern customers than traditional banks. As a result, Neobanks are targeting a specific subset of customers who are prepared to relinquish the traditional banking services.
There are various benefits of using Neobank services from the customers’ point of view. For instance, Neobanks eliminate the need for customers to queue up for availing financial services. Neobanks are also accompanied by lower banking fees. The banks can afford lower charges from the customers due to low maintenance costs as the banks don’t have any human staff. The costs saved due to these factors account for the lower service charges.
The popularity of Neobanks is constantly growing. Modern customers are eyeing for hassle-free banking services that can be availed from the touchpoints of their smartphones, and there is no better alternative than Neobanks.