Internet banking was started in 1980 by the United American Bank. This innovation gave banking a new look and spurned it into a new phase. But just like 5G outshined the phenomenal 4G internet, neobanks became the talk of the industry in 2013.
The birth of these challenger banks gave rise to increased speed in global transactions and an improved financial experience. These financial institutions began meeting the demands of tech-savvy customers and improving their products.
2023 promises to be a big year in terms of financial technology. And for you to stay in the loop, you’d need a neobank.
What Is A Neobank?
A neobank is a financial institution that provides financial services swiftly and seamlessly through digital means. Neobanks offer banking services like regular banks; however, they are solely and uniquely powered by technology.
Some of their products and services include savings accounts, international currency exchanges, product purchases, service subscriptions, etc.
Although neobanks operate entirely online, they partner with physical banks to provide their products and services.
Why You Should Choose A Neobank
Unlike traditional banks, neobanks offer advantages that would come in handy for you in 2023. Here’s a few we’ve put together for you;
1. Competitively Low Fees
Neobanks, also known as “Challenger Banks,” are particularly known for their low transaction fees. The reason is that many of them barely have physical branches. This allows them to have low operational costs like electricity, rent, physical maintenance, etc.
The low operating costs work in favour of their consumers, resulting in lower fees, improved human resources, and higher interest rates. For instance, Kyshi, a neobank for Africans, allows you to exchange currencies at your rate and at a 1% charge– traditional banks charge as high as 5-8%.
2. Round-the-clock Customer Service
Everyone loves apt customer service, as it serves as the backbone of every business. Neobanks have unique customer service qualities as they operate digitally round the clock. This is possible because their support personnel work remotely and are not limited by office shortcomings.
So no matter what time you have issues or inquiries, you will surely get a swift and helpful response. If you want to enjoy a seamless financial experience, bank with neobanks.
3. Seamless Experience
The world is now digital, and several inconveniences have been cut off by technology. Neobanks have taken financial services steps further by making the banking system easier to use. The old way of opening an account with traditional banks requires you to visit a branch and fill out forms.
However, with neobank apps, you can create multi-currency accounts in no time and complete a transaction immediately at the comfort of your sofa.
4. Intuitive And Interactive User Interface
For a few years, the financial sector has been big on improving users' digital experience. Neobanks stepped up and have since maintained the record. They hire the best talents to create state-of-the-art interactive apps.
Their mobile apps are aesthetically built to appeal to users and give them the best fintech experiences. Even non-tech-savvy people can easily navigate these apps.
Although traditional banks have created their apps to meet up with digital demands, when you compare neobanks vs traditional banks in terms of user interface, neobanks take the win. One can say it's because they were built for it.
5. Swift Services
No one likes to have their transactions pending for as little as a few minutes. Transaction delays and other uncertainties have been a hassle among finance industry players and users.
However, neobanks come first in providing financial services in no time– ranging from information verification to money transfers, service activations, etc. For example, a neobank like Kyshi completes international transfers within minutes, as compared to brick and mortar banks that take up to 48 hours or more.
FAQs
Is Neobanking The Same As Online Banking?
Neobanking and online banking are not the same. Neobanking is the use of a neobank for a swift and easy digital transaction. While online banking is any transaction done on the internet with either neobanks or traditional banks.
What Are The Benefits Of A Neobank?
A neobank provides accessible, swift, and convenient services at the least costs. They also have competitive interest rates and a wider range of services.
Do Neobanks Have Monthly Fees?
Most neobanks do not charge monthly fees.
Conclusion
Neobanks are the future of digital financing, thus, a worthy banking option in 2023. While they lead in the financial industry, they are bent on providing more products and services to improve financial solutions globally. It is safe to say that the future of fintech lies in neobanks.
Kyshi is a neobank for Africans globally that facilitates transactions between the US, UK and Africa, at user-preferred rates and a 1% fee. Bank with Kyshi to enjoy the benefits of a neo bank and more.