Neobank - The Future of Digital Banking | muvin

1. SEVEN REASONS WHY NEOBANKS WILL HASTEN THE BANKING REVOLUTION IN THE FUTURE Neobanks fill the gap between traditional banking services and the technological advances that customers expect in the digital age. They are changing the face of fintech, and they may one day be able to blend in with traditional banks. Neobanks is a modernized version of traditional banking services. Traditional banks provide internet services, but they rely heavily on their physical branches. However, the best thing about Neobanks in India is their 'digital-only' financial model, which is quickly gaining traction in 2020. Many people mix up neobanks and digital banks. Both provide banking services via cell phones and other devices, which makes them similar. The similarities, however, end there. 1. Neobanks are less expensive than typical banks Therefore, customers can use them instead of traditional banks. You might think of them as digital banks with no physical branches that provide services that traditional banks don't and do so effectively. They leverage artificial intelligence and technology to provide clients with customized services while reducing operating costs.

2. 2. Neobanks for the win Traditional banks have a number of advantages versus neobanks, including access to capital and, most crucially, client trust. Legacy systems, on the other hand, are weighing them down, making it impossible for companies to adapt to the changing needs of tech-savvy youth. While neobanks lack the money and client base to unseat traditional banks, they do possess a unique weapon: innovation. They may introduce new products and form partnerships to better serve their consumers far faster than traditional banks. 3. Neobanks in the market Retail clients, as well as small and medium businesses, are served by neobanks, which are underserved by traditional banks. They use the mobile-first concept to set themselves apart by launching innovative products. The market prospects for such banks have piqued the interest of venture capital and private equity investors, who have been keeping a close eye on them. According to a report by a fintech research organization, India's neobank companies raised more than $230 million in 2020. India has a 54% smartphone penetration rate in 2020, which is expected to rise to 96% by 2040. Despite the fact that 80 percent of the population has at least one bank account, financial inclusion is still low. 4. What is it about Neobanks that makes them so effective? Using cutting-edge technology, such as Big Data, can help you analyze hazards without having to hire a security testing service. Neobanks are a type of tailored financial institution that aims to extend its customer base by appealing to people with bad credit or no credit history. The improved structure of neo-banks emphasizes many criteria to measure risk, as opposed to the outdated risk assessment methodology. Examining the applicant's online behavior and spending history is part of this process. 5. Neobanks for the Underprivileged The emergence of virtual neobanks in India with no physical presence has ushered in a new era for FinTech. The bulk of these banks are equipped with cutting-edge technology to meet the needs of underserved market segments, such as the unbanked and under-banked. Immigrants, small enterprises, independent contractors, freelancers, and others make up this group. All of them are labeled as 'Underprivileged.' Low account balances and a lack of adequate counsel from big banks had resulted in monthly and annual fees for the aforementioned user classes.

3. 6. What is the level of trustworthiness of neobanks? Neobanks are unquestionably a sound financial model. If you're concerned that the bank's lack of a physical presence and reliance on digital-only services will undermine trust, broaden your horizons! Neobanks are clearly a novel concept, but their operations are heavily controlled, with different organizations required to adhere to tight security and quality criteria. Because everything takes place online, cybersecurity is a matter that is wisely self-assessed without the help of software testing organizations in order to produce faultless online banking services. 7. Neobanks for kids Adults are no longer the only ones concerned about making and increasing their money in today's more competitive society. Children are now participating in the race to increase their riches! Children under the age of 18 are benefiting from new-generation neo-banks that not only help them track their pocket money and spending, but also teach them important financial skills like saving and compound interest rates and contribute to the kid's wallet. With roughly 41% of the country's population under the age of 18, this new and enormous market has a lot of untapped potentials and is quickly becoming a crucial focal area for the ecosystem. muvin – Learn about all banking platforms It can be challenging to teach your child about money. Muvin teaches youngsters about money while simultaneously rewarding good money habits with well-deserved incentives! Also gives young people a new voice and platform, allowing them to manage their own money and make real-world decisions! And it allows you to have visibility into your finances – from spending to saving to earning – while teaching your children responsibility. Muvin takes financial literacy to the next level by breaking down complex financial concepts into manageable chunks and teaching them in a fun and engaging manner. Your child will be able to comprehend and apply financial concepts in real-life situations. Original Source - https://muvin.online/blog/4Mu3NMbHfRAtjr3zyBvPit