• Finny Jose K, CEO & Founder at Neofam


• 20.07.2022 09:00 am
#neobank #banking #fintech

About Finny Jose K

Finny Jose K is the Chief Executive Officer and Founder of Neofam and Ex-Fingpay, Byjus, Dow Dupont, Limetray. Neofam is India’s first family banking experience under the parent company Trapeza Technologies Pvt Ltd. Neofam provides one of its kind digital platform of financial services for an average Indian family.  With over a decade of total experience in managing roles from sales to product development, Finny directed a leading fin-tech to make it the market leader in the financial inclusion space.

Indisputable, Neo Banks are the next-generation banks that are conquering the globe by providing hassle-free, quick services to their customers. Since the beginning of the banking system, traditional banks have been providing services to mankind. But now FinTechs have taken it to a whole new level with the introduction of neobanks, and since then, there have been numerous changes to make it better and more convenient for customers.

What are Neo Banks?

The term neobank refers to a bank without a physical location (branches). The functionality of neobanks is entirely online, as opposed to traditional banks. Their services are similar to those provided by other banks like making payments, money transfers, debit cards, etc.

The banks provide their services using applications driven by artificial intelligence. As a new evolving bank, it aims to simplify the process of using a bank for customers while promoting digitalization. 

1. Flexible and Unified payments

Neo banks allow their customers to make contactless payments. The entire payment process takes place online, and customers can easily transfer any amount of money from one end to another with ease and high security. Through Neobank, customers do not have to go through numerous channels to do their payments. Rather, Neobank serves as a single point of access to all their transactions.

2. Impeccable customer services

Neo banks are focused on giving their customer the best services. Neo banks have an easy-to-use interface that makes working with them very enjoyable for their customers. This AI-driven interface solves all customer queries in real-time. The chatbox will solve all generic queries of the customer. Alternatively, if the customer needs help with something specific or complex, the chatbox immediately connects them to a professional agent, and everything is handled seamlessly. It is available round the clock i.e., 365*24*7, unlike traditional banks.

3. Fewer formalities and paperwork

Not only going paperless economical and eco-friendly but also hassle-free for customers. Whenever a customer has to get any work done in a traditional bank, they have to do a lot of paperwork. Be it to open a bank account or get a new card. With neo banks everything is online and thus, the process is very convenient for the customers, and it saves a lot of time for them. Banks across the globe are trying to reduce their carbon footprint and Neo banks might just be the solution for that.

4. Better Security

Fintechs have made the whole banking process very secure by introducing the use of biometric verification, two-factor authorization, encryption technology, etc. All these tools help customers securely transfer their money. Another advantage of online transactions is that customers are not required to carry large amounts of money to brick and mortar banks, which can be quite risky. Online payments replace that risk with a much less risky one. 

Furthermore, neo banks also send real-time notifications to their customers regarding all their payments and penalties.

5. More Cost-effective

Neobanks, unlike traditional, brick and mortar banks, don't have a physical presence i.e no solid infrastructure is required for a neo bank to exist. Since everything is online, they don't have expenses for physical maintenance. 

6. Availability of rich data and customized products for each customer

Neo banks provide their customers with all their financial data. Like their financial statements, credit scores, transactional history, etc. All these reports help customers systematically see their finances and help them make better financial decisions ahead and help with financial planning. These insights are very helpful for e-commerces also as they require to see their businesses' outflow and inflow of cash to be aware of their resources and capital.

Overall, Neo banks bridge the digital age and financial services provided by banks, ultimately fostering financial inclusion by eliminating all barriers. The combination of FinTech and Neobank can make tremendous improvements to the banking industry.