Digital banking entities known as neo-banks provide all banking services without any physical presence but deliver them through digital platforms. The banking model of neo-banks depends on advanced technology and deep automation together with focused service delivery and extreme focus on customers to deliver value to their targeted customer base.
Before the pandemic people felt unsure about carrying out banking activities without physical branch visits but the crisis accelerated a change in customer behavior. Every banking service needed a home-based transactional option to become the top demand among consumers thereby changing banking norms.
Neo-banks demonstrate unmatched capabilities to build user-centered magnificent digital banking platforms which function at peak levels. Traditional banking institutions remain puzzled about implementing customer-oriented strategies which neo-banks achieved shortly after they gained mainstream popularity. The implementation of powerful technologies such as NLP and conversational AI supports the operation of chatbots adopted by these institutions. The advances made by neo-banks exceed traditional solutions which help improve current customer experiences.
The neobank Bridge Money established its headquarters in Chicago Illinois in 2018 at its U.S.-based operations. The personal checking accounts from Bridge Money through SynapseFi and Evolve Bank & Trust come without any fees balance requirements or check deposit costs.
Key features
- It enables account holders to obtain free personal checking which includes no periodic fees.
- It establishes a minimum balance requirement-free policy for all its customers.
- Free check deposit service operates through Bridge Money’s platform for all its account-holder clients.
Getting started
It currently admits new account holders by accepting them into its waiting list. You can establish your Bridge Money personal checking account completely online by following the invitation to open this account without any requirement to step into a physical branch. Use the mobile application of Bridge Money to manage transactions through its iPhone and Android platforms.
Security and partnership
Your deposits at Bridge Money are secured with FDIC insurance because the platform collaborates with Evolve Bank & Trust through SynapseFi.
User experience
It delivers an easy-to-use banking service through its fee-free banking system which enables users to operate their accounts from their computers.
You can begin your Bridge Money service use through a simple set of procedures that delivers fee-free banking without complications. The expanding presence of neo-banking systems does not indicate that traditional banking organizations will disappear from the market. The new banking institution functions as a financial institution but focuses its consumer-oriented business operations on fintech solutions. The technology utilizes banking partner infrastructure and banking framework to enable its operations. The creation of a neo-bank represents a positive business opportunity for bank CTOs instead of creating difficulties for them. Traditional banking organizations find it simpler to establish neo-bank experiences because they already operate with the necessary banking foundation. The legacy framework undergoes a modernization process to establish business agility together with resilience. Building a digital-only banking channel becomes their next task after establishing a functional framework on top of which it will be built.
Enforce better Security
A neo-bank exists as a technology entity comparable to Google or Facebook instead of functioning as a traditional banking institution. Despite ongoing debate, the question remains uncertain but neo-banks certainly share data collection practices with Facebook and Google by gathering information from various interaction points. The banks use processed and cleansed data to derive strategic insights that guide their operations from various departments. This capability enables the banks to generate exceptional value which benefits their customer base. But it also poses a risk. The collected data encompasses massive quantities of diverse information which holds a sensitive nature. Security frameworks at their most advanced level must be implemented by CTOs to prevent any remaining vulnerabilities. A strong security strategy requires the CTO to establish definitions followed by implementation and tracking with alterations as needed.
Final thoughts
Veteran financial institutions now have straightforward possibilities to join the neo-banking movement. The bank requires strategic development of a new functional business unit combined with resilient technology infrastructure to provide smooth banking experiences for consumers according to the CTO’s understanding. The banking industry is undergoing fundamental changes at this stage.
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