What are Neon Banks and How They Operate?
Neon banks refer to digital banks. It does not have any offices or physical location where you can carry out the business. You are free to manage your bank account through computers and smart phones. With neon banks you get to open bank account for free. You receive Mastercard for making payments and cash withdrawals, and a mobile app which will allows you to transfer money to other accounts and make bill payments. With your neon banks, your funds are completely insured. In case the bank goes bankrupt, you can claim the amount.
The purpose of neon banking is to provide digital and free banking to the public, finance professionals and others. They do not own big offices and many employees. Thus, they do not have expenses like office rent, big bonuses for employees, and other bills. This way they can afford to offer very good interest rates and prices to their clients, which is not the case with many big and renowned banks. Opening an account in neon bank does have some limitations. It is not for people who do not pay taxes or are under the age of 16 years.
Maxim Bederov talks highly about digitalization and neon bank is a free digital bank, which allows clients to enjoy banking services through their smartphone. It is time saving and cost effective solution even for finance professionals and others. The most important benefit of neon bank is that they do not have to worry about their employees, offices, etc. All their focus is directed on their mobile application and their digital products. They do not even need a banking license because they are not a bank. The money is managed by the official bank, which is affiliated with the neon bank.
The services of Neon bank are entirely free for its users. Opening a bank account is free, downloading the mobile app is also free, and availing all the banking services is also absolutely free, which I believe is a great thing. The credit issued by neon bank is also free. It does not have any annual fee, which is most important because credit card has to be free of cost.
Future Banking System
As per Maxim Bederov, Neon banks are the future of banking system. People do not have the time to stand in long lines at banks to get their transactions done. Everything is digitalizing and banks are also adapting this technological innovation. They are moving towards mobile apps so people can do business transactions, payments and transfers at any time. Regular banks have many bugs in their mobile apps but that is not the case with neon banks. They put all their effort and focus in providing smooth customer experience through their mobile apps. You just need to have a good internet connection and a smartphone.
Neon banks are not only good for finance professionals but also great for general public. These days people seek ease and convenience. They want to view their bank account whenever they want to and want transactions just a click way. The banking industry has no option but to move towards digitalization because some bank transactions require paper work like making pay order or bank draft and it is becoming hectic for finance professionals and others to go to banks and do the paper work. Everyone seeks simple solution. The neon bank apps are also very easy to use. You do not need to have advanced knowledge about technology in order to use neon bank apps. Most millennials are attracted by neon banking system because it syncs with their current lifestyle, everything on smartphone and just a click away.
Neon banks are reshaping the banking experience and improving customer experience. With the mobile apps installed in phones, neon banks are embedding themselves into the daily lives of their clients and this is where the banking system is headed. When people have access to their bank accounts through their mobile phones, they feel more connected to their banks. Furthermore, customers also feel more secure when they decide a password for their bank accounts on their mobiles. This way they feel in control of their bank accounts as well.
Future of Banking System
Millennials want everything on their smartphones nowadays, so they have everything within their reach. The future of banking system seems to be digitalizing, which is only possible through neon banks. regular banks cannot handle mobile apps and bank offices at the same time. It is about time banks divert their focus on improving customer experience through digitalization.
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