Everything happens sans paperwork, and also, your money stays safe.
Neobanks are spearheading the fintech evolution to provide better solutions that are feasible, transparent, simple and fast.
How safe is your neobank?
Neo-banking vs traditional banking
With the advent of UPI and cashless payments, digital accounts are gaining more traction. Everyone wants their plates full in minutes, but there are other concerns.
What are the benefits of using a neobank?
- As mentioned earlier, neobanks are completely digital.
- To use their service, you can use your mobile phone or laptop.
- No physical branches.
- Payment reminders for paying your bills on time
- Financial tools for customers
- Quick account creation
- No paperwork
- Complete digital KYC
- Zero registration fees
- Better interest rates than a traditional savings account
- Easy to use
- Better apps than traditional banks
- Instant access to financial transactions
As per RBI guidelines, ‘Neobanks or Digital Banks’ should partner with any conventional bank to continue their operation.
According to the RBI, “The operations of so-called digital banks or neobanks’ formulation should be covered under Reserve Bank’s regulations.
Neo Banks and NBFC are two different things. Neobanks are online or virtual banks, whereas NBFC (Non-Banking Financial Company) facilitates bank-related financial services.
Yes, neobanks are digital-only banks that FinTech organizations operate. Neobanks cannot operate without a banking license in India, so they partner up with banks to facilitate financial services to their customers.