Neobanks, or banks that exist virtually with no tangible branches have arrived on the global fintech scene and challenged existing banking systems feels Bahaa Abdul Hussein. Neobanking is rising towards mainstream domination because of the unique ways in which it is leveraging technology. They go an extra mile to render banking services to customers who are seeking faster and easier options to conduct their banking activities. A list of the ways in which neobanks are harnessing the power of technology follow.
Instantaneous Solutions
Neobanks have done away with in-person obstacles like the hassles in reaching customer support, expensive transfer fees, excessive formalities and long waiting durations. With neobanking, you can do everything with the tap of a few buttons on your smart devices from home.
Automated Support
Neobanks are employing Artificial Intelligence-based support services which helps in providing help to customers around the clock. Chat bots have replaced the frustration of dealing with customer representatives and you can carry out your banking affairs seamlessly even on typical bank holidays.
Blockchain
Since neobanks are a new offshoot of technological innovation in the fintech sector, they are actively looking to collaborate with the use of Web3 technology and cryptocurrencies. Blockchain tech in neobanking also guarantees immediacy, security and transparency in carrying out transactions.
Secure Transactions
State-of-the-art technology is being used by neobanks in building their digital presence and this far exceeds the security services provided by traditional banks. Neobanks are tech-savvy enough to target their consumers who are chronically online and in search of easy and safe banking alternatives.
Cost-efficiency
Since neobanks require low operational costs and no expense in maintaining a physical presence, they also charge substantially low fees for all banking services. This includes setting up new accounts, transferring money to international accounts, requiring no minimum balance or credit history, and so on.
International Payments with Ease
An important area where neobanking is proving to have an edge over existing banking services is for conducting transactions across borders. Innovative digital payment solutions from neobanks have redefined the conventional financial landscape as you can now easily transfer money instantly at minimal transfer fees. This is not possible with physical bank transfers that need longer processing time and hefty charges.
No Surprises
You can always stay ahead of the curve with neobanking as neobanks pride themselves on providing straightforward services to customers. All information is given upfront and there are also no obstacles like hidden fees or elaborate KYC checks. For all these reasons, neobanks have an indisputable user-friendliness and tech-driven ease of access that is personalised for Gen Z and millennial consumers.
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