What are Neo-banks?

The emergence of new-age banking

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Neo-banks are financial technology (fintech) companies that only operate online or through mobile apps. They are digital banks with no physical locations.

Neo-banks are disrupting the traditional banking system by leveraging technology and artificial intelligence (AI ) to provide customers with various personalised services.

Advantages:

  1. The most significant advantage of fintech is its accessibility. It offers technology that customers can access from anywhere in the world.
  2. Not having to appear in person to open an account, quick implementation of payments and transfers, and so on. It even reduces operating costs.
  3. Provide a user-friendly interface.
  4. Help to analyse and track spending.
  5. Can serve retail customers, small and medium-sized businesses, and so on.

Since all transactions are completed through their smartphone application, this presents a challenge for those who are less comfortable with new technologies.

Source: moneycontrol