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The world is operating at a much faster pace than we can imagine; data is the driving force behind this kind of information transaction, enabling various sectors to deliver with the utmost efficiency and speed. Finance is one of the major sectors that demonstrates the economic development of any country or state is the most affected domain by the surge of digitization. It has transformed how people avail of general banking services, like applying for a fixed deposit account or investing in a mutual fund scheme.
Talking about digitization and the latest trends in the banking sector, how can we not thoroughly discuss the emergence of neo-banks and how they are smashing the barriers of traditional banking? It is quite interesting to see that without having a brick & mortar base, these banks can still garner all the right amount of attention (in fact, more than they anticipated). These banks have a digital-first approach, and they prioritize customer needs as basic a service as an account opening online so that they can deliver their services according to the expectations of their potential clients.
Planning to open account online? Look no further than these fintech organizations that have mastered the art of amalgamating advanced technology with the current innovations in financial services. They are incorporating the latest technologies like AI (artificial intelligence) enabled chatbots, biometric authentication, instant payments, seamless navigation experience, and many more at a reasonable price. They are leveraging the popularity of mobile banking and taking it a notch further by providing an enhanced user experience with a touch of personalization.
Without any hassle, you can now have your account open online in just few taps and clicks. The astronomical growth of Neo-banks that we observe today took time. Still, the gradual transformation was triggered during the onset of the pandemic when not-so-affluent consumers like freelancers, gig workers, and independent creators were up for grabs. The amount of gig workers is increasing these days; it is a lucrative target market for neo-banks because there is almost a 700% increase in their transactional value, as stated by a reputed online gig platform.
For a banking organization that doesn’t follow the conventional approach of operating with a physical base, earning customers’ trust is of utmost importance for even a minor banking activity like an account online opening. However, they must follow a list of regulatory guidelines and compliance related to anti-money laundering, data protection, and consumer protection. Still, they are sometimes on the receiving end due to the loopholes in cyber security, as the hackers often target them because of the leakage of sensitive data and financial information.
Neo-banks are acting like a stepping stone toward the digital revolution as they are redefining how we can control and manage our finances. With their ongoing efforts and ever-changing strategies to enhance customer centricity, they are also challenging traditional banks and financial institutions to push their boundaries and develop solutions keeping customers’ ease and preferences in mind.
