Just as we finally started to get used to the term ‘digital banking’ taking over traditional banks that are more familiar, FinTech world has spawned a new brainchild — neo banks. What is neo banking exactly, how is it different from digital banking services and why would you want to turn to it — these questions are finally answered by Crassula — new banking solution for entrepreneurs:
What is neo banking?
Oddly enough, neo banks are pretty similar to traditional banking services — with accounts to put your money on, borrow funds and make transfers. They differentiate by being fully digital, not having any physical branches to go to and are not associated with any traditional financial institutions. Typically, neo banks are using their partners’ licenses for service provision and use available data to create a unique digital experience for their users.
How neo banks differ from digital banking?
By description, it might seem that neo banking is just a new fancy term for digital banking services. However, there is a difference between the two. Digital banking usually refers to a bigger player in the banking industry providing financial services in a traditional way. Neo banks are 100% digital and do not relate to any traditional banking names, big or small.
Why do you need neo banking?
Being aware of how digital banking is disrupting the financial world, it is safe to say that the next step will be fully digital solutions. The percentage of customers turning to digital channels to communicate with their banks already exceeds 80%. This statistic inspires neo banks to create new features and online services for an easy and convenient onboarding and day-to-day task performance that can be done from any location.
The big benefit of neo banking lies within its low fees that have a place to be due to elimination of costs associated with physical branch maintenance, providing affordable services. Because neo banks use only digital platforms for their solutions, they are able to focus on creating a unique and flowing user experience and develop forward-thinking in-app features. For example, Crassula Banking enables opening account wherever you are, performing quick payments and transfers and even create own products and services.
And do not be afraid of a completely digital banking — neo banks still need to undergo the same regulatory procedures as traditional banks and therefore can be trusted just as much.
So, if your business is interested in neo banking — drop us an email at hello@crassula.io
