The bank has always been known to provide means of payments, loans or savings services. You have no doubt heard of neobanks. In recent years, they have revolutionized the banking industry with services adapted to all needs. They are also very popular with the general public, given the considerable number of users. Find out all you need to know about neobanks.
What is a neobank?
A neobank is a digital bank that is often called mobile banking or mobile banking. It is not attached to a traditional bank and is only accessible online from an application. The main objective of a neobank is to provide more simplified services that meet the needs of customers. To this end, they offer services that cannot be fulfilled by traditional banks.
What is the origin of the neobank?
As its name suggests, a neobank means « new bank ». It is more precisely the result of the progressive evolution of technology. Indeed, it found the day thanks to startups which operate in particular in the digital economy, that is to say which develop financial services linked to digital technologies. These startups are called fintechs which come from the words “finance” and “technology”.
Who can benefit from the services of a neobank?
With the increasing use of smartphones and the Internet, neobank offers want to adapt to this new mode of user consumption. Thus, the large part of the clientele that these new banks target are particularly young people. In addition, the offers of a neobank are not limited for individuals, but also for professionals, thanks to specific services tailored to them.
Thus, all those who move often or those who live abroad and who need to withdraw money or to make purchases without procedures can find their happiness there. Added to this are freelancers and those who do not have a fixed income or banking prohibitions, but who need an account at low cost and easy to manage.
What are the differences between a neobank and an online bank?
A neobank and an online bank often confuse users. It is true that they have some points in common like the digital interfaces, but there are however differences. It should be noted that an online bank is often attached to a traditional bank, as is the case for Hello Bank, which comes from BNP Paribas.
A neobank and an online bank are accessible online, so the subscription is usually done on their own site. But as an online bank comes from a traditional bank, it always asks for proof of resources and domicile at the time of subscription. This implies the stability of the income conditions of the interested party, which makes the validation of the registration a little longer, which is not the case for a neobank.
Indeed, the neobank and online banking have a different status. As the neobank is originally a fintech start-up, it offers simpler and more optimized use thanks to new technologies. As for online banking, it is more of a traditional bank, so it can offer credit opportunities.
The services offered
As the two types of banks have different status, they offer different services. Indeed, a neobank offers limited services such as only the possibility of having a current account. On the other hand, online banking allows more extensive services such as depositing cash and checks.
As for the functionalities, they are more developed for a neobank, because it can be accessible on tablets or smartphones. Thus, the services offered offer many advantages, if we only talk about the possibility of remote payment, whether by SMS or by email. The balance inquiries can then be done in real time and in a few minutes.
The prices are different, especially in terms of account maintenance fees. If online banks offer freebies for this service, neobanks not only require monthly fees, but also a commission on each withdrawal in foreign currency.
Unlike an online bank, the neobank offers more security against hackers. Thus, it allows a change of the PIN code of the bank card, its blocking or unblocking, but also recognition by fingerprints.
In addition, the ACPR and the AMF protect all users against scams that may arise. However, always remember to keep your banking information confidential to avoid any risk of fraud.
How does a neobank work?
Using a neobank is easy. However, there are a few steps to follow.
Opening a bank account can be done in a few clicks and will not take a lot of time. Note that you do not have to provide proof of address or income to register. Then, a bank card will be offered as soon as your account is activated. This will allow you to carry out various transactions such as online purchases, withdrawing cash from ATMs, transferring or receiving money or paying at a merchant.
Once your profile has been validated, your neobank allows you to easily manage your bank account thanks to its many features such as SMS and emails. You can thus have access to your balance and follow your transactions in real time.