Loyalty Blogs

Are Neobanks All Set To Win Customers’ Loyalty In The Fintech World?

  • Posted on May 4, 2022 by natalia
  • Reading time about 5 minutes

With everything going digital, brick-and-mortar businesses are becoming a thing of the past. The banking sector is not an expectation when it comes to digitization. One of the biggest trends that are gaining huge attention in the Fintech world is neobank, which operates entirely in the digital form without a physical presence of a bank branch. Offering a superior and branchless banking experience can act as a catalyst to accelerate customer growth & scale your business with a higher retention rate.

Let’s check how neobanking loyalty program is becoming the future of banking and how they can help to boost customer loyalty to a huge extent.

Neo Banking & Its Significance in Finance Industry

Neobanking can be defined as the banking approach that operates without any physical branch network and works entirely in the online-only model. From opening bank accounts to checking the creditworthiness of a banking individual, neobanks facilitate almost everything in one go, offering every service similar to traditional banks.

Neobanks and digital banks may sound quite similar to many as both of them offer digital services. However, it is essential to note that one is a digital partner/subsidiary of a traditional bank while neobank is a completely independent finance technology firm running its own business without any physical bank branch.

Factors That Could Lead to Failure of Neobanks

As neobanks are still new in the finance industry, it is important to check out the main factors that can contribute to the failure of a neobank-

  • Regulatory & Compliance Issues may lead to neobank failure without proper license to run an independent company without a branch
  • Fewer Products by Neo-banks and inability to offer mortgages due to administrative complications.
  • No Core-banking facility, which is why people who prefer doing business in person may not be attracted to this model.
  • Safety concerns by many banking customers make it hard for them to choose neobank over a traditional bank.

Why You Must Invest in Neobanks for Increase in Loyalty?

Neobanks are getting attention from lots of tech-savvy people who prefer digital mode in terms of managing their banking services and neobanks offer lower fees and higher interest rates on deposits.

Let’s check out some of the main advantages that neobanking can offer as compared to digital banks-

Easy Account Opening

Opening new savings or deposit account in a traditional bank can be quite complex as it involves paperwork, form filling process, and standing in a long queue, which can be time-tasking as well as hectic. With neobanking, the whole process is hassle-free as there is no need of visiting any branch. The account for neobank is created in a few seconds using a mobile phone.

Lower Costs

With no physical branches and infrastructures to take care of, neobanks can save a lot of resources and enjoy lower operational costs. Additionally, there is no fee levied on withdrawals, or annual or monthly maintenance charges, attracting a larger customer base. Not just lower feeds, customers can take advantage of high-interest rates on deposits. Money transfer or any form of international payments can be done easily with neobanks.

User-Friendly Interface

Most of the net-banking bank websites are filled with glitches and load issues, making it frustrating for users to use them. But with neobanking apps, there is no such issue. As it is an exclusive digital banking model, the apps are built with superior technologies to make them very responsive and advanced features to make them easy to use for users offering enhanced customer experience.

Robust Security

With exclusive online services being offered by neobanks, apps are built with stringent security standards and banking structures to ensure an increase in customer data safety and satisfaction. Using a wide range of technologies like AI and RPA, every system is built to offer security against cyber-attacks. Apart from that, security features like biometric verification, multi-factor authorization, etc. enable customers to use neobanks safely.

What Makes Novus a Reliable Neobanking Loyalty Platform?

When it comes to delivering next-generation banking experiences, neobanks can help you cater to the needs of millennial customers. With zero physical presence that saves cost and boundless technological opportunities, streamlining hectic banking processes can be a good start to elevate the customer experience and win their hearts.

From delivering personalized experiences at lower costs to simplified payments, the banking solutions built by Novus are aligned with loyalty standards to help you experience the immense benefits like an increase in customer base, higher customer retention, growth in customer engagement, or seamless integration with third-party Fintech systems, Novus is a great Neobanking Loyalty Platform if you are planning to offer elevated banking experience with customer loyalty in mind.

Closing Statement

Neobanks have the potential to be more than just a buzzword and are here to stay for a long time. Though neobanks are still in the nascent stage, they will unleash their true force in the years to come. If you are planning to shift focus from traditional banking to modern banking, neobanks are a great choice to help build customer loyalty by streamlining complex banking processes and enhancing customer experience to the next level.

Ready to know more about loyalty for neobanking platform, get in touch with our experts to see how Novus can help you simplify, accelerate, and supercharge every aspect of your financial operations without hassles and boost loyalty!

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