Page 40 - Banking Finance February 2023

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minutes with minimum paperwork, and will get a virtual place with access to everything through just one tap
debit card for use immediately. Additionally, access to global on the mobile screen. Transparency is key to their
investment opportunities, easy international student banking success as they keep consumers apprised of their
and low-cost global spending etc are immediate services of account status in real-time, even offering personalized
a neo bank. The key features are: advice on the best investment options.
Value proposition: One might ask why someone who's
Personalization: Neo-banks leverage technology and
been banking the traditional way for generations switch
artificial intelligence to offer consumers a personalized
to a neo-bank? Their USP lies in their unparalleled value
service experience while minimizing operating costs.
propositions, with speed and convenience heading the
Seamless multi-product: Offering a multi-pronged set
list.
of services, a digital neo bank is a one-stop-shop for
Convenience: Each of us would have had at least one
availing borderless and efficient banking facilities. The
traumatic experience in a physical bank with financial
suite of seamless services includes safe, easy and
transactions - long queues, unending paperwork,
compliant borderless banking, Hassle-free transition to
multiple signatures, bank holidays etc.
the functioning corridor for work, access to global
Service: Neo-banks make life easy by offering investment opportunities, easy international student
consumers a hassle-free banking experience at their banking, low-cost global spending and so on.
fingertips through a mobile app that gets their work
Simple and User-Friendly Interface: With superior
done quickly and efficiently for them, irrespective of
technologies, neo-banks provide an enhanced customer
where they are placed in the world. Accounts are
experience. The applications and websites are very
opened in 10 minutes after primary documents are
responsive, unlike that of the traditional banks where
furnished, and a quick KYC form has been filled.
the net-banking websites are often filled with glitches
Cost: Since their inception, neo-banks have been known and the mobile applications lag many times.
for their cost-effective benefits compared to traditional
A boon for MSME's: The process of disbursals to
banks. Considering these banks do not have any physical
vendors and other stakeholders is long, tiresome, and
branches, the operational and labor costs are next to
sometimes a bit tedious. Neo-banks bring in simplicity;
nil. Customers don't have to pay any fees for opening
demystify the entire process by reducing the manual
an account with us - no account opening fees, monthly
efforts required, and by providing unified platforms to
fees, wire fees or minimum balance requirement is
monitor the money movement. Not only are this, other
mandated.
services such as taxation, budgeting, and accounting to
Financial Management: Neo banks leverage technology MSMEs also rendered at low costs.
combining deposits, loans, debits, and credits all at one
Benefits of Neo-Banking:
Advancing to a more technologically sophisticated way of
doing things, it goes without saying that the benefits long
outweigh the costs. Similarly, Neo-banking as a technological
by-product aims to make life easier for the customers of a
bank. Neo-Banking has the following benefits:
Neo-Banking enables consumers to perform banking
functions from the comfort of their homes, be it an
elderly person who is tired of waiting in lines or a
working-class professional who is caught up with work,
or a regular person who does not want to visit the bank's
branch to run a single errand. It also offers convenience.
Elaborating on the convenience offered, Neo-Banking

34 | 2023 | FEBRUARY | BANKING FINANCE