New Delhi: In time of digital era, many neo digital banks have spread it's foots in the country and also scoring over traditional banks. These neo banks offer most basic banking services online without forcing you to visit physical office like traditional banks.
The model of Neo Bank is growing rapidly in the world. It has already started in India as well. It is expected to become an alternative to traditional banks in the coming days. Let us first know what Neo Bank is and what are its benefits?
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. Because of this, these banks offer banking services in association with traditional banks. ICICI Bank is at the forefront in this matter. However, it is expected that in the coming time, RBI may give license to such banks to work independently.
Neo Bank focuses on specific types of customers. These include people, who prefer digital banking, SMEs and also the people with low salaries. The services of such banks are cheaper as these banks do not have any branches like 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.
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