Banking is a traditional concept, although time-consuming and frustrating due to the inefficiency they work with. Non-satisfactory services of banks have made them lose their value along with the recent trends the banks couldn’t adapt to the new parameters which have caused poor customer experience.
If we travel back in time a bit, hypothetically, we might come across the extremely long queues which might take your entire day to just get one simple task done like updating the passbook or making a deposit. Apart from this, the complicated bank forms are supposed to be filled out every time you need to get anything done in your bank.
Nowadays if we have a look at the market, we can observe a new trend going on which is going online for every sector. We have seen many transactions in the digital era in the last few years as we are stepping into the future starting from online restaurants, online shopping, meetings, lectures, and even online exams. Almost all sectors are moving online and have become a trend in the market these days, to shift things online.
This transition has made life easier at some level, however, there are still a few sectors that if shifted online will be of great ease for customers. If we do a bit of time travel and analyze the scenario of the banking sector, we might come to see the problem with the traditional banking system. Standing in long queues for one simple task, waiting for hours, and devoting one entire day of the week if you need to get something done in the bank. Yes, it is an extremely tiring and time-consuming process.
Although digital banking has tried to solve a few issues, it came with its cons which consist of digital fraud and money laundering activities as well. Digital banking tried to solve the issues of traditional banking but couldn’t perform as well as expected and has its limitations. It came with a solution of mobile applications to make banking easy but still it was pretty much dependent on traditional banking which was a big limitation for this solution.
The most recent advancement which can be said to have contributed to the banking sector is Neobanks. These are financial institutions that offer online-only banking services, just like a traditional bank. Neobanks have no physical branches to visit and have their entire working process made online. They provide all the financial services that a traditional bank does.
From the opening, a bank checking or savings account to making funds transactions and other financial educational tools such as budgeting help, there is nothing that Neobanks cannot provide. They offer mobile applications to manage transactions and financial services.
Although Neobanks have similarities with traditional banking, they are still different from each other in their offerings and structures which are different from other credit unions, they are not commissioned by state or global regulatory bodies as banks, and they offer streamlined banking services through their mobile apps.
Neobanks offers an astonishing feature to its customers to link their traditional bank accounts and leverage both forms of banking services. In a way, Neobanks is an upcoming trend in the market that might transform the entire banking experience for customers and organizations as well, and altogether provide a new definition of banking services for the entire population. Understanding that there are a few reservations about this concept in the market as of now, however with time they might resolve, this can still be said to be the beginning of a new banking era.
Read: Qolo and MX Collaborated to Aid Neobanks and FinTechs Grow