Customers don’t want to think about banking. They just want it to work.
Traditionally speaking, in India we’ve always been dependent on banks for any financial needs since 1750 BC. This is true for both individuals AND businesses.
But this is 2021. Our needs as customers have evolved since 1750 BC. Today, especially with the ongoing pandemic, if I have started to rely on digital platforms as a customer, then why shouldn’t I expect the same from my bank?
Fortunately, we have a very sophisticated banking infrastructure in India. For retail customers at least.
For businesses, however, the story has been a little different. While banks and their services are aplenty, they usually involve long and tiring processes, most of which are not exactly in favour of businesses who identify themselves as startups and MSMEs.
That’s right! Approx 6.3 crores of MSMEs and lakhs of startups in India are still on the lookout for banking that is catered to their needs.
While neobanks are, as a keyword, a fairly new concept in the Indian fintech space, it’s gaining momentum rapidly.
This way, banking which has predominantly been a brick and mortar service, breathes a new life with the technological revolution that neobanks or neobanking brings in.
So, what exactly is a neobank?
A neobank is pretty similar to a bank but doesn’t have any physical branches. It operates completely digitally, which allows it to offer its customers a broad range of financial services including payments, accounting, expense management along with actual banking.
Essentially, they bring in simpler, faster and more efficient banking and financial services to their customers’ phones or desktops.
Globally, neobanks are already a rage! The market was projected to reach a whopping $50.2 Mn in 2020, with the US, UK and Germany occupying a larger share of the market.
While they’re still the new kids on the block in Asia, neobanks are predicted to become the next big thing with China being the most lucrative market by 2025.
Phew! If you want to know more, check out our previous article on how neobanks are disrupting the banking space.
Not only are they changing the world for their retail customers, but they also bring in good news for businesses (and their banks) as well.
How do neobanks help businesses?
On the face of it, they directly cut out the long and tedious processes that have become synonymous with the business banking world. Imagine saving hours and hours which would otherwise be spent on long and manual payments and disbursals.
But this is really just scratching the surface.
For a business, nothing can be more important than viewing the complete money movement and knowing the real-time availability of its cash.
This is precisely where neobanks help. Their services are built on top of traditional banking services, allowing them to provide additional services like collecting & sending payments, managing expenses, doing full-fledged accounting – all of which at the end of the day provide the business with a complete picture of its money flow.
Additional benefits can be counted as tons and tons of hours are saved on manual efforts and gaining peace of mind which later can be focused on other most important aspects of the business like its growth.
It is really simplicity at its best. Don’t believe me? Sign up on Open and see how easily and quickly you can get started with an online bank account and start running your business finances together!
In short, what we’re talking about is nothing short of magical yet it cannot get any more realistic than this! Built on the very foundation of technology and core banking principles to serve customers, neobanking is not just a buzzword anymore but it is how the world is going to bank from now on.
Remember that customers, be it businesses or individuals, don’t think about banking. They just want it to work. And if it works so wonderfully well with neobanking then is there any doubt that neobanks are here to stay?