Useomnipresent smartphonesin daily life has changed consumer behaviour and habits. These various revolutions have not spared thefinancial brokers,ofnew actors appear. Mobile application banks, nicknamed « neobanks »have emerged and introduce new financial policies. These fintech companies areobjective of providing banking servicestoreduced prices, adapted precisely tocurrent needs.
The new banks make up theCentral link in servicesand have exceeded customer expectations in the digital age. Theneobankchanges face, and could one dayeclipse traditional banks. Many non-banks could merge with digital banks. In all cases, neobanks focus more on the supply ofbanking services through smartphonesand other appliances.
How to define this new banking system?
The different banks of this new technology are economic companiesoffering only online financial servicesand do not have physical branches. This isnew technologieswho have no problems managing most of theirresourcesthrough an application onsmartphoneor any other motive.
The neobanks are propelling themselves toThe vanguard of new technologies. By removing knives and moving things online,neobanks saveoften on severalbank costs. This allows them to reduce fees and extend their servicesin France and abroad.
Neobanks are not identical in terms of offer or structure. But they generally differ from credit unions and traditional banks (including online banks) on the following points:
- Theyare not registeredas banks by state regulators.
- They are developed mainly to facilitate operations with mobile devices
- Conventional banks deal with unsuspecting customers and have federal deposits.
- Do not credit (e.g. overdraft)
How does the neobank work?
Opening a New Bank Accountis done entirely without encumbering. Mobile banking services are no different from traditional banking services. Butthese offers are limitedand particularly relevant to the following;
– Current accounts and savings
– Payment services and money transfers
– Study tools
Register and open an account
Opening an accountNew Bankis simple and easy. This maybe done in seconds via mobile appor the mobile bank website. The registration process is very simple and guides the user step by step to create his account.
Unlike traditional banks,no proof of income is requiredto open an online account within a neobank. However, you must provide valid identification and additional guarantees, as required by the payment agency.
Registration fees
Theprice is one of the main advantagesNew banks compared to traditional banks. Some mobile banks, such as N26 or Revolut, offer afree bank card accountat the beginning of the offer. Others suggest thatBasic formulafor about 20 euros, which includes free payments and transfers. These fees are equivalent to the account fee of a traditional bank.
New banks are also particularlyCompetitivewith regard tointernational transactions. They proposefees for payments abroadwithdrawals outside the euro area, etc. These fintech companies also favour atransparency policyin their offers. A customer with a basic account may use a free credit card provided that a number of transactions are made in that account. If this condition is not met, the customer must pay aadditional monthly fee.
Methods of payment
By returning to their neobank personal account, the customer will receive apayment card. As a standard bank card, this form includes a payment method and aPIN code. It can also be moved or transferred with a simple click via the mobile app on your smartphone or website.
For example, Nickel Bank customers have access to services worthy of the black and gold suit. Theircards are freely customizable(colors, metal textures, personal message patterns, etc.) and tend to be very expensive.
Offers
New bank offers are very simple and limited. Afterconfirmed online subscriptionThe customer opens a payment system with the bank and receives a card. They can then perform theusual operations(balance verification, transfers, levies, etc.) in a secure and autonomous manner. Alltransactionssuch as payments and withdrawals on the customer's account arestored and referenced in real time.
In addition, some neo-banks offer their customers the possibility ofGetting microcredits. Other mobile banks also offercashback(online reviews) based on customer habits. Also, the neobank offersspecial featuresFor example, a crypto wallet available on your smartphone.
What kind of clients do non-bank institutions need?
A neobank or « Neobank » is a leading market thatdevelops thanks to smartphonesand their ever-increasing use in everyday life. In order to adapt to new lifestyles and consumption, non-bank institutions such as neobanks offersimple and fast banking on smartphone. The clientele of these new players is therefore relatively small. The main non-bank retail companies are Revolut, Anytime, N26,Orange Bankand C-Zam Account.
Beyond this young and connected clientele, the new banks have decided todeveloping commercial proposals. As non-physical management services for individuals evolve, professionals still need to benefit fromquality online banking services. Several new banks have decided to meet this need by addressing professionals: Anytime, N26, Qonto, Monaize...
Drafting opinion
For all your money transfers, thenew banking systemDon't stop gaining ground. It offers customers the opportunity to maketransactions through bank cardsyou choose according to the ceiling that suits you. Don't hesitate to make a comparison of the different rates to make sure you made thegood choice for your neobank.
A neo-bank is a kind ofonline bankingwhich allows you to make payments and withdrawals from your smartphone. It knows no geographical limits, it isavailable in France and abroad. It is one of the flagship products of the banking system.