Put bluntly, Neo Bank is a modern form of the digital bank that operates without branches. Neo Banks are trying to reinvent conventional banking activities and procedures.
The distinguishing feature of Neo-Banks is that they are physical only without bricks and mortars. It was designed from conception to provide consumers with smooth consumer experience without depending on the infrastructure and technology that conventional banks have relied on.
Neo banks are financial technology companies providing digital or mobile financial services only, including the following:
- Inspecting and updating accounts.
- Mortgages to people and companies.
- Deposit and online money transfer services like ACE Money Transfer.
- Many programs, including money management, and more.
To get around banking rules, several Neo-Banks have started selling prepaid cards connected to the device as a single product.
This helps them to enter the market without having to comply with many of the legislative restrictions imposed on banks.
However, the money transfer app comes with a high degree of features to track spending habits, warnings, and transactions between friends and savings targets.
Any of the neo bank initiatives come from established banks and credit unions.
To cater to gadget-savvy millennia and remittance communities, existing banks are creating new services with new names.
But the most exciting new banks are possibly finned tech companies that will boost the management experience.
Can We Send Money Abroad with Neo Bank?
Yes, neo banks offer us personal services that let us send money to Nepal online and anywhere across the sea.
They depend on consumers who have a bank account and an acceptable bank license but offer a developer-friendly interface. The level to which consumers are informed of the underlying bank partnership day-to-day may vary.
As Neo-Banks grow, they will then be able to venture out into other money management, such as private loans and mortgages, to undercut existing financial institutions at rates. They can deliver lower rates because they don’t have the very same massive costs as operating an old school branch.
What are the Benefits of Neo Banking?
Services at abridged cost: For banking not spending in establishing a branch, CAPEX will save a lot, providing financial services to its customers at an affordable rate.
Customization and improved topographies: With such an evolving idea and modern technologies, Neo Bank is providing full flexibility and compatibility with existing infrastructure.
A broad variety of banking services: Open an account in 3–10 minutes or trigger tri-currency transfer’s that help you send money to Nepal, subscribe to personalized reports, spending reports or 24/7 help. Anything is achievable with Neo banks.
Downsides of Neo Banking
No access to the branches: Without having offices is one of how neo bank and digital banks can minimize overheads and give their customers affordable prices, but it does mean that they are unable to have the same degree of in-person service as a high street bank.
ATM’s: Indeed, neo banks don’t have marked ATMs, but this doesn’t imply that you probably wouldn’t be able to withdraw money with a neo bank debit card or even using your smartphone.
Unless you’re the type of individual that wants to be able to do all their banking in one location maybe with a checking account, a credit card, a savings account, and a home loan all with the same checking or provider. Then a new bank may not be a bank for you.