The digital revolution has also engaged with the Indian banks due to the rise of digital payments. This is the clearest indication by the consumers as they have an interesting preference for app-based banking. This is happening due to the better control on managing the money without any restriction. According to the reports, customer expectation is also changing rapidly regarding financial services.
Reasons for the Neo banks Better than Traditional Banks:
There are various reasons for the banks to be better than the traditional banks which we have listed below.
Traditional banks are required to have the customers visit the branch multiple times for completing the opening of an account. With the introduction of neo banks, customers can easily fill up the complete details using the app-based form. According to the report presented by the Reserve Bank of India, an average customer could end up spending around 8 hours to complete the account opening formalities in any branch.
Neo banks will complete the procedure with the proper input of PAN and Aadhar information for the opening of an account. Using the E-KYC feature get the current account or savings account opened in a few minutes. It also offers further security features which include biometric identification along with facial recognition to complete the identity verification.
Every customer is looking for low fees which is one of the important criteria for the increasing customer base of neo banks. Comparatively traditional banks are having higher operating costs which is much required for maintaining the ATM and branches.
The complete cost is being transferred to the customer by dividing them into various service charges including transaction alert, cheque book, credit cards, and debit cards, account statements, etc. New banks completely operate in the digital model which will offer a high-interest rate with no monthly fees charged for the services.
Every traditional bank will be offering all the standard services for the complete audience. They will not provide any separate attention to the requirement of the customers. With the introduction of digital banking, the customer demographic is continuously increasing. Neo banks use all the account information and data analytics to successfully recommend various products to the customers.
An app like AntPay will use the insight and statistics according to the customers to identify the requirement and recommend them which will suit their needs. Neo banks completely focus on the profile of the customers including personality characteristics, interests, values to offer them all the products based on various demographics.
Neo banks will offer complete customer support service by using chatbots which will offer automatic recommendations completely based on the transaction history. Artificial intelligence-based algorithms are the major functionalities of every neo bank apps to offer a personalized solution. Although the traditional banks prefer the integration of omnichannel customer support with a single approach.
Security is the major concern for the entire customer base while using any digital banking product. Data protection is much required for every financial institution and bank for securing the information of customers from any unauthorized access. Neo banks offer two-factor authentication along with other functionalities offered through the app. Traditional banks prefer the implementation of the complete data protection architecture with all the latest encryption standards.