The Surging Neobanks Tide
Empowering financial inclusion through digital innovative Neobanks, affordable services, and customer-centric experiences
The aftermath of the 2008 global financial crisis brought about the emergence of neobanks, as traditional banks became untrustworthy. Neobanks are Fintech companies that offer banking services exclusively online or through digital platforms such as websites or mobile apps.
Primary neobanks, like Revolut, Starling Bank, and N26, started in Europe and were later launched in other regions like Australia, Asia, and North America.
The neobanks market size has been growing, and industry data and trends suggest that this will continue, signalling a substantial shift in the banking industry. The number of digital account holders is projected to double in the coming year and will be able to reach around 40 million users.
In 2021, the neobanks market size was estimated to be over 47 billion USD, which grew to around 66.8 billion in the subsequent year. It is estimated that the value will reach 2.05 trillion USD in 2030.
Convenience
Neobanks provide 24/7 accessibility, which makes them convenient. Users enjoy real-time transaction services and services anytime and anywhere.
Neobanks’ proficiency in establishing partnerships and ecosystem integration, for instance, by collaborating with fintech startups, e-commerce platforms, and various service providers, has given them an added advantage.
With such strategies, they can provide comprehensive financial solutions that transcend basic banking service provision. This interdependence enhances their customer value propositions while offering convenient solutions.
Innovation
Neobanks are agile in constant innovation for products and service delivery. For instance, they offer automated saving plans, tools required for customer budgeting, and peer-to-peer payments. These are essential requirements that tech-savvy customers fancy for greater control and financial transparency.
Neobanks are not coerced by bureaucratic processes and legacy systems, enabling them to integrate up-to-date financial technologies speedily. This agility has allowed them to stay ahead in the highly evolving financial world.
Satisfaction
Neobanks services are tailored especially to prioritize the customer experience. Their personalized financial insights make users feel they are in charge of their money. Customers also get swift responses for their feedback, and this ability of neobanks to adapt faster has distinguished them from their conventional counterparts.
Neobanks are unburdened by expenses that traditional banks grapple with, such as overhead costs. They operate using lean structures, saving costs. This cost efficiency allows them to provide their customers with better interest rates and fees.
Neobanks are significant players in financial inclusion as they cater to underserved or unbanked masses. Their simplified onboarding procedures and reduced reliance on account approvals mean they can extend financial services to those barred from the banking system. This inclusivity resonates highly in areas with limited access to traditional banking services.