May 16, 2021
The future is here, the future is Neobanking
Why carry cash, when you can carry the bank in your pocket
Habits tend to blindside us into making stupid mistakes. Remember the Center fresh ad, the ‘bajarangi’ ad, yes about the stupid security guard who obliged to the beckoning of a bank staff and blew his cover. I am not giving you a perfect heist plan, or a habit formation guide. But, our habits can sometimes make us do the stupidest things possible. If we continue our habit of traditional banking then we will soon be Bajarangi and make life hard for ourselves. Let’s embark on this new, and exciting journey of the Neo banks/ Digital banks/ Challenger banks.
What are Neobanks?
Welcome to the 21st Century, the world has moved online and moving at the same pace if not faster, the banks have come to our mobile screens. Yes, The banking power is now on a mobile phone.
Neo banks are not to be confused with the online banking solutions that traditional banks provide, Neo banks are banks with no physical locations. All you need is a mobile device with Internet connectivity to do what the teller, the cashier, the staff at the bank do. Neo banks are highly capable Applications on your mobile phone, they are extremely secure, Super fast, and reliable. These 100% digital banks come with features that educate you and ease your financials. One can use Neobank applications with the same ease as an e-commerce app.
Indian regulations don’t permit 100% digitized banks. So, Neo banks in India are a collaboration between tech companies that have the necessary tech and the Banking institutes that have a banking license.
The need for Neobanks
Millennials are the generation that questioned the status quo, demanding services that are convenient, fast, customized, and Stress-free. To cater to these needs of the generation that constitutes nearly 46% of the total workforce in India, companies need to keep innovating constantly.
India’s millennials are 30% of the population but they contribute to 38% of the nation’s total gross income and 35% of the global workforce.
Millennials are the first generation of digital natives, they love shopping online, in fact, 34% of the global millennials are ready to do all their purchases online if possible. These changing consumer behaviors have not only forced e-commerce businesses but even the banks to provide innovative solutions. Neo banks with the power of technology can customize services at scale.
Not just the millennials, everybody needs better banking. The Growing economic precarity demands flexible services. The stuffy rooms, the long application forms, the queues, the puzzling processes needed this solution called Neobanks.
Neobanks provide Debit Card facility, Credit Card facility, Customer Service, Wealth Management Guidance and advice, Fund Management, Taxation, real-time exchange rates, International cards, etc. all on your mobile device. And you can use these facilities just using the power of clicks.
💱 Different Neobanks/ Challenger Banks across the world
Neobanking in India
As mentioned earlier, The Indian system is different, the regulations in India do not permit FinTechs to operate like banks, they are not given a banking license. So, the Indian Neobanks build their services in collaboration with traditional banks.
These Neobanks ease the onboarding process with online & Video KYC, provide feature-rich solutions, real-time dashboards, analytics, and great round-the-clock customer service. There is no doubt in the ability of the Neo banks. Neo banks are here to make banking more accessible, fun, and complete. Now you know I wasn’t exaggerating when I said you can carry the bank in your pocket. So Stay home, Sit back and enjoy stress-free banking.
