Page 27 - Banking Finance March 2023

ARTICLE

Although tech-driven start-ups have also lately entered the Salient features of Neo Banking
banking industry, these "neo-banks" or "challenger banks,"
Account Creation
as they are more commonly called, have little to no physical
The creation of accounts is one of Neobank's key functions.
presence and instead offer all services through their apps
Users must enter their first and last names, Social Security
and websites. They are formidable rivals in the field of digital
number (SSN), email address, and password when creating
banking thanks to their sole dependence on technology, but
an account.
this could also introduce new dangers. Monzo, Revolut, and
Starling Bank in the UK, as well as Chime, Simple, and Varo
Money in the USA, are examples of these types of fintech Single Screen Transfers
businesses in this field. Any banking app's ability to facilitate user money transfers
is key to its success. Therefore, implementing a single-screen
When compared to traditional banks, neobanks offer all the transfer facility would be wonderful. It guarantees a better
same services, including checking and savings accounts, user experience.
payment and money transfer services, loans for both
individuals and businesses, and other services like assistance Multiple Payment Options
with budgeting. These neobanks first appeared around five
The simplest approach to incorporate numerous payment
years ago, specifically in the UK thanks to Fintech players.
alternatives is through third-party API integration. You can
Some neobank start-ups go through the process of becoming
incorporate P2P, A2A, ACH, and other channels.
chartered banks. With their universal banking model, which
features low cost structures, feature-rich products/services,
Streamlined Processes
and simple accessibility, neobanks have begun to disrupt the
Do you believe that neobanks are popular? The only
banking industry's virtually uncontested harmony.
justification is that, in comparison to conventional banking
In India, neobanks and the majority of their product offerings apps, this process is more frictionless. The best examples
are not subject to government regulation. To ensure that include free account opening and synchronising ATMs with
their product offerings correspond to the regulatory international networks.
standards, they are nevertheless subject to indirect
regulations (via their relationships with regulated ATM Map
organisations). To guarantee that the sector matures
The Neobanking app getting this feature will be amazing.
further, it is imperative that rules change gradually in
Users have access to a map of all the ATMs nearby, making
tandem with the development of the industry. With the
it easy for them to find one anytime they need one.
introduction of new business models and goods, the
neobanking industry is becoming more stable. As a result,
Transaction Tracking
the sector may need its own rules to keep an eye on the
Users must be able to view all transactions, including the
market.
history, in a single window. The name, bank account,
In this case, incumbent banks are replaced by new transaction account, currency, and other details of the
technology-driven banks (e.g., "neo-banks") with full-service beneficiary can all be included.
"built-for-digital" banking platforms since they are unable
to withstand the wave of technology-enabled disruption. Customized UX
Examples of these banks may be found all over the world, The user experience is more important than anything else,
including Atom Bank in the UK, Bunq in the Netherlands, so it is fine if you implement the app. Users engage with
WeBank in China, and Varo Money in the US. your app while using it, thus it needs to be a great
experience for them.
Objectives of the study

To study Neo Banking system in India Gamification
To explore Challenges and future of Neo Banking in The technique of gamification uses procedures in an
Indian Banking Industry intriguing way. Gamification in this context indicates that

24 | 2023 | MARCH | BANKING FINANCE