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Digital Transformation In Banking With Neo-Banks:
Neo banks overcome any barrier between the evolving expectations of customers in the digital age and the services that customary banks offer. They are developing the face of fintech and might one day at some point outshine customary banks.
Many might mistake neo banks for digital banks. Both are comparable in that they provide banking services through smartphones and different devices. But that is where the analogy ends.
Defining Neo-banks:
Neo-banks are online-only financial technology (fintech) organizations that work exclusively digitally or by means of mobile apps and offer the best digital banking solutions.
Banks, with the assistance of their branches, spread globally, have taken care of the necessities of the majority of their clients. Notwithstanding, fintech start-ups and organizations have now concocted a hassle-free, convenient new-age banking experience by launching the neo-banks hence leading to digital transformation in banking
Commonly, Neo-Banks provide the best digital banking solutions and extensive services just like customary banks. From opening accounts to evaluating the reliability of an individual or an enterprise, neo-banks work with nearly everything.
The use of machine learning, robotics, and AI has assisted fintech organizations to provide a wide range of best digital banking solutions to the issues faced by the customers of customary banks.
The Neo-Banks products are made offering customer accommodation as an utmost preference, where we have Fintechs such as Uni-Pay, Slice offering credit cards and credit line, where customers can break their remarkable credit card bills into simple 3 EMI’s and pay, with no extra or hidden charges. Likewise, we have RazorPayX, a customized product for SMEs and corporates offering current accounts and the capacity to receive corporate cards, instant payments, and Loans.
Neo-Banks V/S Digital Bank In Providing The Best Digital Banking Solutions:
Commonly, Neo-Banks and digital banks are utilized conversely. Nonetheless, it is critical to take note that despite both types of banks offering digital services only, the digital bank is mostly an online-only partner or an auxiliary of a customary bank. Then again, Neo-Bank is an independent financial technology organization or a Fintech organization completing its business with practically no physical branch in association with single or multiple customary banks to provide various services and products ranging from issuing a card to creating an account.
Numbers Don’t Lie: Expectations And Growth Numbers
As per a report by KBV Research, the worldwide neo-banking market size is anticipated to reach $333.4 billion by 2026, increasing at a compounded annual growth rate (CAGR) of 47.1 percent. Although neo-banks are a somewhat new concept in India, the concept has been capturing adhesion throughout recent years. There are nearly a dozen neo-banks in India encompassing EpiFi, Razorpay X, Open, NiYo, Jupiter, and Slice among others. In recent times, a portion of these organizations raised funding from marquee worldwide investors, who are betting on India’s massively underbanked market potential.
The Driving Force: Mobile & Millennials!!!
The market potential for Neo-Banks is determined by the increasing penetration of the smartphones and internet globally. Likewise, this is a generation of millennials, and the millennials today are extremely impatient, and they require things to be done rapidly, and in an extremely proficient way. Customary banks, because of their current operational loads and different factors, are not able to match the demands of this customer segment, and subsequently, to take care of these demands, the FinTechs come in with exceptionally savvy and intuitive User Experience based products that are a genuine eye-catchy product for the millennials.
Opening Doors with Open APIs:
The new age Neo-Banking revolution is occurring because of the way that the customary banks have begun to open gradually, and the pandemic has given them the digital acceleration which they were trying to develop. The Banks’ systems are currently more open and prepared to partner with the rest of the world to extend their services. To simplify this, APIs have been an extremely impressive main impetus while heading to expansion and digital acceleration. Customary banks have utilized the Open APIs offered by their solution providers to extend their services and best digital banking solutions to Fintech’s organizations and broaden their reach and reach their objective of expanding client base and more products and service offerings.
My Big Brother: Traditional Banks
Might the customary banks at any point disappear? While Neo-banks don’t have the customer base or funds to conquer customary banks, they have something exceptional in their arsenal — technology. They can launch features and establish partnerships to serve their clients substantially more rapidly than customary banks with digital transformation in banking.
With the Projection of 1 billion smartphone users by 2026 and 96% by 2040 in India, the Neo-Banks can possibly develop.
Having said that, the customary banks won’t vanish, as these neo-banks, however, have a very tech-savvy product and capacity to attract more and more customers, the Banking backbone or the Banking brain is offered by the traditional brick and mortar banks.
Likewise, customary banks can use the client base and the client category which they have from fintech, which was a hard-fought territory for customary banks, to cross-sell and upsell their other conventional products.
In this way, the future is, of the joint effort of the customary and the Fintech players, both hands in hand can make an extremely impressive and advanced banking presence which will assist grow the banks as well as the FinTechs while heading to giving a brilliant customer experience.
SOULPAY – Secure And Reliable Online Money Transfer App
Everybody desires their money transfers to be easy and quick. Thus, to save on effort and time with the Aeps money transfer app, SOULPAY is the best solution. Here are a few advantages to consider while using this online money transfer app:
- Transfer to any bank account: money transfers are hassle-free with SOULPAY, just transfer money from any bank to any other bank account.
- Swift Transactions: For the simple and quick method of transferring money, pick SOULPAY. With an online money transfer app, transactions are simplified when contrasted with bank services, guaranteeing smooth money transfer services.
- KYC required: To keep up with end-to-end secure transactions, KYC is required. With SOULPAY it becomes simple to do KYC within minutes.