Neobanks have brought a significant transformation to the banking industry in recent years stated Bahaa Abdul Hussein. Offering a more personalized, user-friendly, and convenient banking experience has caused digital banks to disrupt the traditional banking model. The topic of this blog post is to analyze how neobanks are enhancing the customer experience.
Neobanks Revolutionizing Retail Banking
Finextra Research’s report highlights how important customer experience is for neobanks in retail banking to transform themselves into game-changers. Traditional banks are being outdone in providing a better customer experience by neobanks leveraging technology. Being well-placed to give personalized insights along with low costs by providing user-friendly interfaces featuring predictive intelligence for easier access and streamlined processes is their strength. By making services that can be easily integrated into business processes, neobanks are challenging the universal banking model.
Innovative Technology and Convenience
The financial world is being revolutionized by neobanks with their innovative technology and convenience. A mobile application provides digital banking and a unified customer experience for neo-banking, according to GlobeNewswire. The application generally uses 2FA, biometric verification, and RBAC to safeguard customer data and prevent malware attacks. With a share of over 66.0%, the business account segment emerged as the biggest contributor to overall revenue in 2021. The preferred method of payment for larger transactions among businesses globally is neo-banking. In addition, neo-bank platforms’ capability to provide simplicity and ease of use is luring in more customers.
Better Customer Experience
The use of technology enables neobanks to deliver a more satisfactory customer experience than conventional banks. The advantageous positioning of neobanks for delivering personalized insights along with lower costs and streamlined processes via user-friendly interfaces is emphasized by Finance Magnates’ report. The creation of easily integrable services is their method of challenging the conventional universal banking model.
Lessons for Telecom Industry
Valuable insights on enhancing customer experience can be gained by the telecom industry through neobanks. Mobilise Global’s article highlights that companies in the telecommunications industry can learn from Revolut and other neobanks which provide 7 effective strategies for enhancing the customer experience. The said lessons involve delivering tailor-made experiences while offering a user-friendly interface with technological enhancements. A streamlined onboarding process coupled with continuous 24/7 customer service and varied payment choices is also provided. Their service includes a transparent pricing model.
Know Your Customer Challenges
A smooth customer experience can be provided by neobanks only if they overcome the challenges associated with KYC. To meet regulatory requirements, neobanks must confront KYC challenges, as reported by Veriff. Ensuring data privacy, preventing fraud, and verifying customer identity are the main challenges.
Conclusion
Conclusively, neobanks are changing the customer’s banking encounter with their customized, easy-to-use and hassle-free services. By utilizing technology, they aim to offer improved customer experience and challenge the traditional banking model. By observing neobanks, other industries can gain insight into enhancing customer experience. Compliance with regulatory requirements necessitates neobanks overcoming KYC challenges.
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