GoBank is a neobank based in the United States offering Personal accounts including a debit card, with all transactions managed from an iPhone or Android application. GoBank currently accepts open mobile bank accounts for residents of the United States.
GoBank is rated 1.3 on TrustPilot, based on 48 reviews. GoBank, which was launched back in 2013. Among the biggest advantages of GoBank is the ability to easily deposit cash at retailers and make an early direct deposit. Moreover, GoBank has a great ATM network throughout the United States, offering a free-of-charge service. Yet, with GoBank, you will have to pay monthly fees.
The future of digital banking: reinventing financial institutions in a changing landscape
Financial institutions today are under tremendous pressure to reinvent themselves. Rapidly changing consumer needs, combined with ever‐faster technology adoption curves and evolving regulatory pressures, have created an urgent demand to reimagine the digital banking experience. This report identifies key features necessary for success in the changing world and outlines a new business model to align institutions to future priorities. This report builds on an analysis of four neobank models: GoBank, Moven, Serve, and Simple, with takeaways that can improve any institution’s competitive position in the shifting digital landscape. The foundation of the first banks in the early 19th century forged the revolution in the world’s financial industry. Naturally, since that time, banking services have been constantly changing and expanding to stay up-to-date with the current level of innovative technology development. Yet, most traditional banks still can’t address all the needs and demands of their clients. As a consequence, more and more people are switching to neobanks. Providers attracting younger, urbanite, and underbanked will be examined. Finally, the report provides a series of best practices for future‐proofing financial organizations and retooling branch networks for profitable operations in a new era.
How does Gobank neobank work
First of all, you should remember that Neobank’s business model heavily relies on online operations. It makes the banking services cheaper, but it might be a problem for those who are used to face-to-face interaction with banks. Another milestone for this neobank is near-instant seamless transactions with round-the-clock access. Any customer can receive banking services anytime and anywhere. Finally, to successfully compete with traditional banks, public neobanks usually charge less fees.
Pros and cons of Gobank Neobank
Bear in mind that all banks disregarding the type have their benefits and pitfalls.
Pros
Convenience. Unlike many traditional banks, a neobank allows you to fully manage your finances without needing to drive down to the bank branch. You can access your account via the mobile app 24/7.
Competitive rates and products. The branchless business model makes operational processes much cheaper. Hence, neobank platforms charge lower fees and have bigger budgets for upgrading services based on data-driven insights.
FDIC Insurance availability. Due to their partnership with traditional banks, neobanks offer the same level of banking charter as regular banks.
Cons
Fewer services. Neobanks will not usually provide you with some classical banking services. For example, you will not likely be able to send wire transfers or flawlessly accept cash deposits.
Unpersonalized experience. Due to the lack of branches, you must accept that you will have impersonal customer service.
Regulatory challenges. You do not have to worry about the funds frequently held in FDIC-insured partner banks. Yet, due to indirect insurance, some customers tend to have trust issues with the neobanks concept.
Should you switch to Gobank Neobank
If you are more comfortable dealing with money remotely, value the ability to get the loan without a credit score, and admire the low fees neobanks offers. Yet, when it comes to neobank vs. digital banking or neobank vs. traditional bank competition, you will see that each type of banking has its advantages and drawbacks.
What the future holds for these banks
Many people have fears of trusting the fintech industry given that it is still a relatively new concept in the financial world. Yet, it is worth looking at what neobanks are facing ahead of them but not in the past. Numerous researchers suggest the compound annual growth rate for the next few years will be 13-49%. So, most likely, neobanks will get the enlargement of their client base, gradually integrate open-banking APIs, and will start to offer a broader array of services.
Final thoughts
In today’s digitalized world, some financial institutions are becoming outdated at a very fast pace. Hence, it is no surprise that the new banking concepts are coming into the light. The most recent concept is a neobank, which features branchless operations, hence almost zero fees. At the same time, the client receives full FDIC insurance, convenient online customer support, and even artificial intelligence to improve the customer experience. So, neobanks are the future of the financial industry, and switching to them can be the right choice for each person and entrepreneur.
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