What is Digital Neo Bank And Its Benefits? Here's Everything You Need To Know
Mar 16, 2022
In time of digital era, many neo digital banks have spread its foots in the country and also scoring over traditional banks.
The functioning of Neo Bank is 100% digital as it does not have any physical branch. This means that Neo Bank does not have any branches like traditional banks.
Every operation is carried out through the app and also the bank offers all the banking facilities that you would find in a traditional bank.
There are about a dozen Neo Banks in India. These include RazorPayX, Open, Neo. But, till now Reserve Bank of India has not given license to Neo Bank in India.
ICICI Bank is at the forefront in this matter. However, it is expected that in the coming time, RBI may give license to to such banks to work independently.
Neo Bank focuses on specific types of customers. These include people, who prefer digital banking, SMEs and people with low salaries. Since, Neo Bank does not have any branches, its services are cheaper than traditional banks.
The functioning of Neo Bank is completely technology based. So they use cloud tech platform.
Neo Banks are giving tough competition to traditional banks in many countries of the world and the growth of Neo Bank may accelerate after the approval of RBI in India.
Services of these banks are more popular among the new generation customers because its banking services are very easy to use.
It takes a few minutes to open an account and user verification through KYC didn't take much time which saves a enough time for the customer.