After seeing internet-based technology skyrocket over the past decade, it shouldn’t come as a surprise to know that a set of all-new virtual banks have also come into existence.
Virtually set neobanks do an excellent job at providing users with a seamless, speedy banking experience through the internet. They can also help overcome specific core banking problems and assist retailer transactions.
The following article will discuss these features in more detail, but first, let’s start by understanding what neobanks really are.
If you own an account in a modern bank, you’re probably already familiar with internet banking. However, just because a bank offers web banking doesn’t necessarily mean it qualifies as a neobank.
Neobanks exist solely on the internet. They are entirely virtual and do not operate through a physical banking outlet. The services they offer, while similar, are not the exact same as those offered by banks.
For example, Neobanks usually only provide clients with checking and savings accounts. Essentially, they follow a smaller bank model, which isn’t necessarily a bad thing.
In fact, operating solely online and providing a brief number of services means that the banking fees they charge are low, and they’re relatively easy to use! We’ll talk more about the benefits of neobanks later.
Since these banks are purely online, they usually work through mobile applications or websites. The former seems to be a more popular method.
PayIt, which is one of the UAE’s best neobanks, operates through this exact same philosophy. Even though you won’t find any physical payIt bank, you’ll still be able to access a complete range of banking features, all of which are just a few taps and clicks away!
Neobanks are essentially just mobile apps, and they work the same way other mobile apps do! If you’re interested in registering for a neobank, here’s what to do:
2. Sign up for your account. You’ll have to enter some basic details, such as your ID.
And that’s it! Your account is ready. The process is quite simple and saves you from a lot of paperwork that you would have had to do in a traditional bank.
As PayIt is a Neobanking launched in 2018 and has shown fantastic growth since then. Part of our service’s popularity stems from the amazing benefits our Neobanking system offers to users.
Here are some of the most commendable benefits of Neobanking:
Got a smartphone, tablet, or computer on you? Great! Now, all your banking facilities are just a tap away, supported by a convenient UI system.
Neobanks are known for their remarkable accessibility; gone are the days where you’d have to schedule time within your busy routine to visit the bank. With neobanks like PayIt, you can simply download the app (or visit their website), and you’ll be good to go!
Creating a bank that solely exists within cyberspace rids the company of the high cost of operating a physical bank. This lowered operating cost allows neobanks to charge less for their services, making their services more affordable for consumers than physical banks.
Simply create your PayIt Neobanking account within a few minutes through its app or web portal. There’s no need to busy yourself with the hassle of visiting a physical bank in person!
Benefits like these have made neobanks extremely popular within the UAE and on an international scale.
While digital banking and neobanks are both based online, the realm of digital banking can sometimes come across as strikingly limited when compared to the facilities and benefits offered by a neobank.
Digital banking is backed by a physical bank, meaning that you may need to occasionally visit the bank to avail of extra facilities or assistance. However, a neobank guarantees you the ability to successfully satiate all your banking requirements from the comfort of your home – or whichever place suits you the best!
Since Neobanks aren’t backed by a physical bank, they also aren’t chartered with the government as a bank. This means they don’t have to follow some state regulations, which may allow them to lower fees. This is not true for all neobanks, though, so be sure to do your research!
With digital banking, you can often apply for credit through the app. Your application gets forwarded to the branch you’re registered in, and they oversee it. However, not all neobanks extend customers with this option.
If you’re someone who often needs credit, or wants that safety net, don’t worry! Some neobanks do offer credit. Since it’s not a standard facility to provide, just be sure to check with the neobank before registering.
The exact facilities offered through a digital banking system vary from bank to bank, so limitations may occur. Luckily, neobanks don’t have this problem – making the switch to a neobank like PayIt certainly does pay off (pun intended)!
Neobanks have many brilliant benefits, as discussed above. They have proven to be extremely useful during the pandemic because all of their facilities were accessible through the internet. As a result, payment transfers, financial transactions, and related procedures could continue to function unhindered.
Neobanks are also ideal for people who are always on the go, jumping from one Emirate to the next, without being tied down to a physical bank.
We’ve already seen how modern journalism, shopping, and other services have made their home within the digital realm. Judging by how the internet-backed virtual world is progressing, it’s safe to say that neobanks are likely the next big thing in banking technology.
Neobanks have helped overcome a number of core banking problems, including reducing the hassle associated with transferring money abroad.
Neobanks essentially allows you to send money abroad much faster than a traditional bank would, which has helped make the service extremely popular amongst individuals in touch with their overseas family or small companies dealing with foreign clients. They also charge less for this service than physical banks.
Another core problem concerning traditional banks related to the way they operate. Asian banking systems are slightly different from European ones, and African ones may have a completely different system altogether. Many traditional banks struggle with creating a system that’s perfectly compatible with international banking practices as well as local ones.
Neobanks, on the other hand, are a relatively newer concept, which has allowed them to mesh both local and foreign banking practices while introducing their own twist into the system. This is also one of the reasons why they offer faster international transfers. In this way, neobanks are somewhat superior to traditional banks.
Neobanks allow consumers to instantly cash transfer to a retailer who has a registered account on a Neobanking platform, like payIt, or one in a traditional bank. Thus, neobanks have made it extremely convenient for people to purchase the products they like with ease.
Online payment methods are essential if e-commerce is to thrive. Being able to shop and pay for the product online allows both consumers and producers to purchase goods, services, and raw materials from far away places (i.e., abroad or another city).
As a result, being able to pay online can boost both production and consumption. Neobanks help facilitates this process through their convenient interface that can be accessed at any time of day or night. Thus, they can prove extremely useful to retailers, especially smaller-sized ones that rely on instant day-to-day transactions to pull their business through.
Yes, neobanks are safe to use! It’s natural to worry about whether your money is safe with a neobank as these are relatively new financial institutions
However, your money is safe with a neobank. While neobanks may not be regulated under law as a traditional bank, every country has regulations for fintech companies (a category neobanks fall under). So, by law, your money is safe with neobanks.
A lot of traditional banks also give you insurance. So, in case something happens to the bank, you can claim your money from the insurance agent. Neobanks, themselves don’t do this. However, nearly all neobanks partner with a traditional bank to offer customers this type of insurance.
So, make sure you learn what kind of insurance your neobank is offering before making an account.
In terms of online security, neobanks are also very safe. Since they operate online, they ensure that all their security protocols are up to date, so you don’t have to worry about hacks.
Neobanking platforms like payIt are on their way to revolutionizing modern internet banking. Not only do they allow for an easier, seamless banking experience, they have also helped traditional banks overcome certain key problems and made transactions easier for everyone.