The Benefits Of Neobanks
by Arnab Dey Finance 18 November 2022
Over the years, neobanks have become a popular alternative to traditional banking. Neobanking offers digital-only services that streamline banking processes with increased convenience and lower fees.
The service has been redefining the banking sector and offering a glimpse into what banking could look like in the future. The neobank sector shows tremendous potential for growth in the coming years, with a predicted market size of $722.6 billion by 2028.
Several factors contribute to the increased interest in neobanks, such as speed, efficiency, and better customer service.
Whether you are looking to make a switch from traditional banking to a digital platform for personal or business services, it’s important to explore the benefits of neobanks. Understanding the key benefits an efficient neobank should offer can help you choose a platform that best fulfills your needs.
Convenient To Create & Operate
Most neobanks offer the flexibility to quickly open an account in minutes without leaving your home to visit a physical branch.
Your only task before opening an account is to educate yourself about the services offered by different platforms to determine which one works best for your needs. Neobanks eliminate the need to fill out time-consuming applications so that users can easily sign up and get started.
Once you’ve created the account, it’s easy to learn how to navigate the platform, especially if you choose a bank that offers strong customer support. This helps you get quick questions to answers, allowing you to use the platform and control your finances conveniently.
Lower Fees & High Interest On Savings
High operational fees and low interest on savings accounts can frustrate traditional bank users. Since neobanks operate online with no physical branches to maintain, they can save on overhead expenses. As a result, neobanks can offer lower fees on services and higher interest on savings accounts.
When you choose a neobank or online bank known for its efficiency and transparency, you won’t have to worry about hidden fees or unexpected expenses. Complete clarity of costs will reduce the stress associated with banking, enabling you to handle your finances without worry.
Multiple Chequing Accounts
Many neobanks offer multiple chequing accounts, allowing customers to compartmentalize money into different accounts. This can be helpful for individuals who want to better manage their money by separating their monthly bills, earnings, and savings.
Businesses can also take advantage of multiple chequing accounts as it helps control spending by allowing you to dedicate specific accounts for defined expenses.
For example, business owners can allocate different accounts for employee pay, facility maintenance costs, and marketing expenses. Access to multiple chequing accounts can streamline goals and trend tracking, improve your bookkeeping, and enhance financial security.
Available To Bank 24/7
Since you don’t have to visit a physical branch to complete financial transactions, you have the freedom to use your neobank all day and night from anywhere in the world.
The ability to make payments, deposit cheques, and manage your finances 24/7 can save you time as you won’t have to wait until the next day to complete necessary tasks.
Research has found that 21 percent of adults use a digital-only bank as their primary account and report greater satisfaction than consumers who use traditional banks as their primary account.
Although neobanks are a fairly new innovation, the platform’s benefits have contributed vastly to its popularity. If you are a tech-savvy individual or business owner looking to gain better control of your finances, neobanks might be the right choice!
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