These changes have been instrumental in the building of our modern world, especially when it comes to the mortgages that banks offer tohelp people get into housing. We’re now seeing the dawn of a new kind of banking system which is entirely digital, known as Neobanks.  

Neobanks are banks which exist purely online, and while thatmay limit their ability to lend out money, they make up for it in other ways. As with any technological shift in any industry, we’re starting to see the broad range of improvements that they can make to our daily lives, which have innately become more digital than ever before.    

Whether you’re interested or a skeptic, read on to learnabout the perks of neobanks which make them unmissable.   

Generally Lower Cost 

The first and foremost perk which will probably convince most people to at least give it a go is that Neobanks tend to charge a lot less than traditional banks for their services. This is because they have forgone the expensive legacy systems which traditional banks utilize, and thus the saving is often passed on to the consumer.   

No Physical Location 

Each branch of a traditional bank costs not only in rent,but also maintenance, staff, security, cleaning, etc. Without a physicallocation a Neobank does not have to worry about these overheads.   

Automated Services 

Utilizing more modern technology than traditional banks, Neobanks are able to automate a lot of their services meaning they don’t needas many personnel.   

Interchange-Fee Model 

Unlike traditional banks which are limited by the Durbin amendment, Neobanks are able to fully utilize interchange-fee models in their systems which means transaction fees fall on the business rather than the customer.   

Peer to Peer and Cross Border Remittance 

Digitally sending money to friends or family near or far has always been an expensive hassle which has required the navigation of ancient technology such as Paypal or Western Union. 

Most Neobanks have peer to peer payment and cross border remittance built into their systems, which means that not only is it easier, it also works out to be cheaper and faster too.   

Cash Rewards 

While traditional banks do offer some consolation for opening certain accounts, and others offer point systems with their credit cards, they tend to leave a lot to be desired. As a way of attracting customers, many neobanks will have integrated cash rewards app systems into their services.   

These can come in a few different shapes and sizes.   

One-Time Rewards 

If you’ve ever used a cash rewards app before you’ll be familiar with the one-time rewards that are usually tied to signing up andinitial actions on the service. In neobanks you can expect this to be tied to your first deposit into the bank, and other similar firsts.   

Cashback 

Another feature common to your average cash rewards app thathas been integrated into most neobanks is the cashback on purchases. This is usually a percentage agreed upon between the store and neobank, where they will return usually between 2-10% of the spent amount back to you. This can work like a discount, and is especially valuable if you already shop at the stores where cashback is offered.   

Crypto 

With our banks going online, it’s no surprise that ourcurrency seems to be heading the same way. Unless you’ve been living under arock, chances are you’ll have a basic understanding of how cryptocurrency works.    

Neobanks have stepped up to the challenge of wrangling these digital currencies into a more convenient format, and several have succeeded in integrating wallets into their account systems.   

All in One Place 

Buying and selling cryptocurrency can be a task, and managing one or more digital wallets alongside that can further complicate theissue. By utilizing a crypto-friendly Neobank you can expect to be able to:   

- Store crypto in secure wallets 

- Withdraw or deposit various coins at your own convenience 

- Buy and sell coins at your own convenience 

- Use coins in online or in-store transactions   

Built-in POS 

Finally, while this is more relevant to businesses, it does have good implications for consumers too.    

Many Neobanks are integrating Point of Sale (POS) payment processing platforms into their banks, allowing businesses both brick and mortars and ecommerce stores to be able to receive transactions straight into the relevant accounts. 

This means no more expensive transactions or long waits for money to move from the payment processing platform to your bank account.