Neobanks are Fintech companies that provide standard commercial banking services entirely digitally. Unlike conventional banks, Neobanks do not have their usual bank branches and, importantly, are not licensed as banks. Neobanks began to develop recently but have already managed to win a large client base.
What are the trends of Neobanks in 2024-25
To create an excellent and high-quality Neobank, you need to be aware of the trends in this field. Let’s take a closer look at the Neobank trends for 2024-2025:
Artificial intelligence and adaptive machine learning
Companies will begin to expand the use of ML and AI technologies. ML and AI are real tools that should increase conversions (for example, in smart sales) or, by anticipating a clients’ question, give them an accurate answer to reduce the contact time with the bank in service communications. The emergence of automatic consultants will not take long.
Transparent financial services
Neobanks operate transparently and strive to provide real-time information on any payments a customer makes. Neobanks try to inform clients about all services, financial determinations, and additional expenses at every stage of cooperation.
Improving knowledge in the field of financial technologies
As more and more people use digital banking, they are learning to navigate and explore new technologies for the digital transformation of the banking sector. Thus, they become more aware of the financial instruments available to them and gain more knowledge in the field of financial planning and investing. Thanks to digital banks, it will be easier for the average customer to get a greater depth of financial products and mechanisms.
Cybersecurity in financial institutions
Security today is an integral part of processing digital transactions through banks. Often, Neobanks are not accredited like conventional banks, but the way they structure their operations makes it possible to establish a high level of cybersecurity.
Neobanks use biometric verification, encryption technology, and various other security measures to protect customer data and their mobile phone. In addition, they provide high-security features such as lock and freeze at any time through the app.
Why are Neobanks so popular
If you are interested in How to Start a Neobank you should understand what their popularity is. According to the latest foreign studies. Interest in Neobanks is increasing every year, not only among the young audience (18-40 years old) but also among the 65+ age group. Research companies worldwide are investigating why more and more clients are switching from traditional banking services to using the services of Neobanks.
An Amazon bestselling author and Founder of Neobank Moven, Brett King, once said, “In 2030, I would say that you probably have two billion people that will be using day-to-day banking services, independent of banks”.
And this shift in focus is obvious. It’s all about their wider functionality and accessibility. They also use reliable ways to attract new customers.
These are separate cards, virtual, disposable, holographic, and others. And, of course, the expansion of opportunities. From cash withdrawals without interest, without commissions around the world to access to cryptocurrency.
How to start a Neobank
If you want to know how to start a Neobank, you should understand that Neobanks take care of the safety of their customers. They care about people’s savings, using various services to protect users’ information and personal data. Neobanks not only care about protecting users’ finances but also motivate clients to socially significant actions.
Many Neobanks also have functionality that allows donations to be made to charity each month. In addition, the system shows what friends support the same fund. Such opportunities create a favourable environment for forming a high level of social responsibility among users.
They also can test changes in applications on users. For example, banks poll users about what they would like to receive from the application. Whether they want, for example, to create deposits or receive dividends in the form of bonuses and discounts that can be used at their discretion.
Neobanks will continue to earn popularity. The secret of this phenomenon lies in the sum of approaches to attract customers, hiding behind the expression “new sincerity”. The definition implies a humane scheme for providing services when unnecessary paid services are not imposed on the client.
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