Future Trend, Revenue, Growth Advantages of Neo Banking
It is time to say goodbye to the old-schooled, hectic banking procedures and say hello to the new-aged millennial banking with a white-label neo-banking app development. Open an account in minutes and start banking with 100% online banking services.
Formulating The New Aged Fintech Finesse With Neo Banking Platforms
The world is witnessing the rise of modern-aged millennial banking, which is LGBTQ-friendly. The neo-banks have the word “bank” in them, yet they are entirely different from a traditional bank. Why fall into the old banking traps when you have a neo-bank?
Neo banks quickly gained a lot of popularity after a neo bank named Chime got 13 million users in The United States. The technologies are changing, and so are the ways in which Millenials and GenZ choose to bank. The neo/fin-tech banks are serving new-age customers with reduced fees and providing all the services online.
Neo-banking is the hybrid bank of the future which is slowly overtaking the traditional banking sector. These banks are completely online and have no physical branches. Built with the latest technology, neo-banking platform development can offer several benefits pushing innovation and customer experience to the next level.
Traditional banking is mostly focused on retail customers, while neo-banks target small businesses. They are offering a set of banking services that are targeted towards SMBs, like business loans, invoicing, and different merchant services. The neo banking platform has proved to be a huge success in Europe, where numerous neo-banks have achieved a significant share of the market.
To understand neo-banks and their features, let us dive deep into this post.
What Are Neo-Banks?
Neo-banks work like a bank but do not exist in a physical form. These banks exist only in the online mode offering only a handful of services and products. While to access the services provided by traditional banks, long queues are formed, neo-banks can address requests in seconds.
The neo-banks offer features like paperless KYC, account opening as well as free international transfers. Since neo-banks don’t have physical branches, they don’t have to pay wages, and this facilitates lower charges and fees for neo banking customers.
While this model is still evolving, we still are witnessing the transition in the global banking landscape via several neo banking app development.
Why Prefer A Neo-Bank Over A Traditional Bank?
A neo bank and a digital bank are quite different as the digital bank is a subsidiary of a famous player in the banking market, whereas a neo-bank exists solely online, enabling them to comply as well as navigate with a regulatory environment.
To understand better, let us have a look at some of the benefits of neo banks below:
No Physical Branches
Neo-banks really dont have physical branches and are completely different from the traditional banks. Neo-Banking is completely online, and technology-driven, yet, many people still doubt their existence. For this reason, neo-banks have started partnering with the conventional banks enabling customer trust. Along with that digital banks, and neo-banks also have complete digital services but without any physical offices.
Startup Synergies
Most of the neo banking platforms are startups inclined towards offering financial services, and all of them focus on simplifying hectic banking tasks. A white-label neo-banking app development run by these startups fills out the gap that is caused by the lack of synergy between the banking policies and what the customers actually want.
Customer-Centric Approach
The millennial neo-banking is still doubted by a ton of users as digital, traditional banking has the backup of a robust financial institution. But there are more cons to it as the new age generation does not have the time to keep circling around these institutions. With a neo-bank, the customer needs are catered to directly through their mobile phones in a more faster and simpler way.
Rural Empowerment
Rural upliftment focused neo banks will offer low-cost solutions that are solely inclined towards meeting specific customer needs who barely have access to the traditional banks. However, neo banks will offer streamlined services in payment processing and invoice creation, which will help the SMEs to manage user finances more efficiently.
Simpler Registration
The neo-bank tech allows the customers an easy navigation through its user-friendly and simpler panels. Money transfers are done within a few minutes; unlike traditional banks, an account in a neo-bank can be opened much more easily.
Listing Some Features Of White-Label Neo-Banking App Development
Neo-banks are offering a ton of essential services needed for money management with an easy-to-use neo-banking software development. Now, let us have a look at some of the important features that a neo banking platform will have:
Banking-As-A-Service (BAAS)
Neo banks work well with the management of financial procedures for account holders. Neo banks provide users with existing banking products and services. Neo-banks build an additional layer on top of these banking products as well as payment infrastructure which is provided by their banking partners. This helps them solely focus on the customer needs and services.
2. Scalable And Tech-Driven
Neo banking platform development by tech startups makes them entirely technology-oriented than any other bank. Both the backend and frontend of a neo bank are technology dependent, mostly being app-driven, which means that for most of the processes, the app is enough. Neo banks are the next-gen banks that work with a tap of buttons to complete tasks that earlier required one to visit traditional banks. Opening an account in a neo-bank is quick and from the comfort of one’s couch.
3. Efficient Marketing Strategies
One of the most important factors about neo-banking is the interesting marketing features that come embedded in a white-label neo-banking app. It is highly common for neo banks, unlike traditional banks, to run numerous marketing campaigns through social media and build communities. Along with that, neo-banks work through influencer marketing and the publishment of motivating testimonials. Another important marketing tool is customer referrals, through which users can gain rewards after they refer the neo-banking platform to their contacts.
4. Open Online Accounts With Zero Balance
Open your account directly through a neo-bank online without thinking about handling the stress of wasting hours in a physical bank. Also, the customers of the neo-bank are not required to keep any required balance in their accounts; they can go to zero balance as well.
5. Digital Credit/Debit Cards With Free Transactions
Neo banking software development will help users to get their virtual credit/debit card for unlimited and free transactions with tons of flexible repayment options per their comfort.
Driving A Notable Change With Community-Focused Neo Banks
First Boulevard
Neo bank First Boulevard focuses on providing innovative banking facilities for Black Americans after the murder of George Floyd became a trigger point for many of the Black American business owners. This community-ridden neo bank emphasizes expanding its mission-driven team by providing Black Americans with technology, fee-free debit cards, and financial education to create a medium to achieve financial parity for their community in the US.
Daylight
At the beginning of this article, it was mentioned that neo-banks serve the needs of the LGBTQ community, and this neo bank is a unicorn in all respects. At this neo bank platform, Daylight financial barriers for the LGBTQ community can be evaded. Queer users can register by the name they chose and bid farewell to their birth names. Daylight focuses on uplifting this community and making them feel respected and heard with their fintech services.
Chime
With more than 12 million users, this neo bank is the most famous of them, especially in the United States. This neo bank completely evades most of the fee structures that are related to physical banks. Chime also provides a lot of credit opportunities, including early access for direct payment deposits and an automated saving prediction model. However, Chime is a fintech company and not a bank.
Varo Bank
Varo Bank has about two million users who, in 2020, received a full-service national banking charter from the OCC, Office of the Comptroller of the Currency. This made Varo Bank an official bank with no monthly overdraft fees and zero balance run ability.
Long-Story Short
The average banking customer is always looking for customized yet holistic financial management for their spending and savings. Yet the new-aged GenZ and Millennials are more knowledgeable than ever. It is really very hard to convince these two generations as they are not at all like their predecessors. The predecessors followed a specific pattern and relied on pre-destined rules for their satisfaction. Even when concerned about banking, they relied on what the traditional banks offer. Neo-banks cater the audiences that are looking for high-interest savings, low-cost services, and low-interest credits. Virtual banking via neo-banks will become normal in a few years as IT mammoths will lead the fintech race and blur the old banking norms.
With the emergence of open programming interfaces and absolutely free exchange of data, rising neo-banks will surely take over the fintech industry soon. Budding entrepreneurs should contact the best white-label neo-banking app development companies like RisingMax Inc. to bring a revolutionary change in the banking sector with a neo bank.
