Neobanks: the new era.
Considering these new changes in the banking and financial sector. I’m going to talk about neobanks and what they are representing nowadays.
Definition
Neobanks are financial technology (fintech) companies that provide banking and/or financial products and services; they work exclusively online through mobile applications. They are financial institutions that do not have physical branches.
Fintechs have a robust technological architecture, for this reason, their objective is focused on providing a new and excellent user experience through their digital platforms.
What they offer…
Neobanks offer products and services similar to traditional banks, although with a simple and reduced catalog. Among its most common products are debit cards, credit cards, and prepaid cards.
However, some neobanks are beginning to offer loan products, such as personal loans; mortgage credits; and commercial credits.
Features
- Simplified financial management process.
One of the objectives of neobanks is the simplification of financial management processes for their users and clients.
Neobanks also engage with third parties to cross-sell products and services, allowing them to focus on the user experience.
2. New age, flexible, and scalable technology platforms.
They are more technology-oriented than traditional banks. They are fundamentally based on applications, which allow common processes such as account opening, fund transfer, or customer service with the least number of steps, from the comfort of home or office.
Neobanks vs. Traditional banks
Main Challenges to the Product Studio
As a Product Studio we must make a global analysis of the neo-banking sector that allows us to have a comprehensive understanding of this new trend; likewise:
- Define strategies that add value to the execution of projects.
- Offer solutions to clients that generate a positive impact on the user experience (backend user/client).
- Design products and services that are oriented within the best banking and financial practices.
- Flexibility and adaptation to the changes that this new technological trend represents.
- Willingness to provide support in operational failures and technological incidents, considering the issue of information security and technological fraud.
Conclusion
Neobanks currently represent a new market niche, considering the global trend in technology and communications.
We can see the new wave of these types of institutions which are constantly being created and seeking to gain space in the banking and financial sector.
