How Neo Banks Are Getting the Attention of Small Businesses?

Small businesses squander a lot of time on administrative tasks, manual banking procedures, and customer service. SMEs need fintech-powered solutions like aspire neobank today to meet their needs, including 24/7 customer support, an intelligent business account, payment services, accounting, and cash management, to name a few. Neobanks step in to fill the void in this situation.

Neo-banks: What are they?

The Greek word “neo,” which means “new,” is the source of the word “neobank.” Thus, “neobank” translates roughly as a “new bank,” which perfectly captures how they have threatened the established banking system.

Neo-banks are financial technology (fin-tech) businesses that only conduct business online or through mobile apps.

Neobanks are online financial institutions without physical locations that provide services that conventional banks do not.

What distinguishes neo-banks from conventional banks?

• Comparing neobanks with traditional banks makes the online experience better and more seamless. Neobanks were created exclusively online, whereas conventional banks first opened physical locations before expanding their product lines online.
• Neobanks are businesses that provide customers with an affordable alternative to traditional banks. They offer services that traditional banks don’t and do so effectively. Reckon them as digital banks with no physical branches.
• While most neobanks lack banking licenses, traditional banks are fully regulated and chartered. Neobanks typically collaborate with conventional banks to insure their products.
• Neobank platforms are simple to use without additional guidance from a bank representative, but clients can contact an expert via chat, phone, or email if assistance is required.
• Neo-banks are upending the established banking system by utilizing technology and artificial intelligence (AI) to provide customers with various personalized services. On the other hand, traditional banks use an omnichannel strategy, which entails having both a physical and a digital banking presence to provide a wide assortment of services and products.
• Small and medium-sized businesses that take precedence in serving customers have adopted their low-cost business model to a great extent. And we’re giving you reasons to try a neobank if you’re a business that hasn’t yet!
• Neobanks have grown in popularity for a variety of reasons. They are, first of all, straightforward to use, and their software is made with the user in mind. Neobanks have also benefited from the digital revolution. Moreover, people have become accustomed to running every aspect of their lives through technology.
• Neobanks offer clients quick services, and digital Customers of neo-banks only need to complete an app-based opt-in form! Instead of a conventional bank’s drawn-out procedure. Simply put, it is inconceivable to compare the two in terms of the total amount of time you can expect to spend at a branch.
• Nowadays, customers place a high value on low fees. Neo banks, as opposed to conventional banks, be economical. Although security-wise, things like transaction alerts are important, the average customer pays ongoing fees that amount to hundreds of rupees in additional costs over time. Because most operations occur online, you don’t need to worry about devoting many resources to business banking activities.