An Analysis Of The Structure Of The Neobank And Its Advantages Compared To The Traditional Bank

In recent years and with the advancement of technology, new concepts have been formed in banking and the way of providing services in the world has faced tremendous changes. In order to benefit from a competitive advantage in the financial market, banks must always be able to adapt to new conditions and accept new technologies. Today, one of the main criteria of competition between banks is the amount of offline services provided on a digital platform and with the benefit of knowledge-based methods based on information technology, in a customer-oriented, diverse, fast and low-cost manner. Neobank is a concept that covers these features. Neo Bank is actually a type of digital bank that has no physical branches and offers all banking services to its customers ۲۴ hours a day online. The biggest feature of Neobank is that you have all banking services in one application and program in your mobile phone. Traditional banking always brings to mind a large number of branches, ATMs and paperwork. However, a group of fintech startups are challenging this mindset and promising users a seamless online experience. Traditional banks are also trying to adapt to new changes. The new generation also communicates better with technological products and this creates an attractive opportunity for neobanks to expand the market. Neobanks, sometimes called "Challenger Banks" are a series of fintech companies that provide applications, software and other technologies to simplify banking services on mobile and online. These fintechs usually specialize in a series of financial products and services, including checking and deposit accounts. When it comes to traditional banking, the first issue that attracts the most attention is the excessive bureaucracies of this banking system, which also creates many problems. Currently, a new group of fintech startups, or a spectrum of financial technologies, known as neobanks, are challenging the stereotypes of traditional banking in the form of digital banking platforms – or purely digital platforms and finally, they promise an integrated online banking experience for free or at a low cost. But is the Neobank experience all it's cracked up to be for customers? Below is a summary of some of the most popular neobanks today, how they work, and the advantages and disadvantages of such platforms.

Keywords:

Strength , Weakness , Neobank , Bank , Service.