What is a neobank?
A neobank is a digital bank, without a storefront, and is usually only controlled by a mobile app. Neobanks offer a personalized and more user-friendly experience compared to many traditional banks. This way, neobanks can both challenge and renew the financial offers that many of the major banks currently have.
Although many of the financial services are the same as those of a regular bank, the user experience and features are completely different. Many consider this one of the many benefits of a neobank. They compete with traditional banks because of their lower costs, advanced features, user-friendly interfaces and tailored services.
A digital experience
Neobanks are 100% digital and most often in the form of a mobile app. These apps are often innovative and focused on design, with an interface that makes it very user-friendly. There are often a number of features that allow you to customize services to your own needs. In this way, the user gains an overview and easily understands their personal finances, and hopefully makes better savings and spending decisions. This makes the user experience unique compared to a traditional bank.
There are many advantages to using a neobank:
- An account can be opened quickly. You can open an account within a couple of minutes. The process is smooth and simple and you do it directly on your phone.
- You get a free debit card. Neobanks often offer a free debit card that you manage directly from the mobile app. For example, you can freeze the card if you lose it or change the PIN code 24 hours a day and directly on your phone.
- International payments. You can often use your card abroad without any additional charges and with current exchange rates.
- User-friendly interface. Responsive and well-designed app that is easy to use.
- Support directly in the app. A chat feature is often offered, where you can get help directly in the app.
- You get an overview of your expenses and can easily manage them in the app.
- Updated flows. You always have an up-to-date balance on your account, and all transactions and payments appear directly in the app. You may also receive notifications that you can adjust to your specific needs.
- Saving goals. Neobanks can offer services that help you save money to a specific goal.