Neobanks, also known as "challenger banks" or "digital banks," are fintech firms that offer apps, software, and other technologies to streamline mobile and digital banking without a physical location, redefining user-friendly finance. Unlike traditional banks, neobanks are exclusively online-focused, prioritising convenience for the tech-savvy generation. They have embraced 'Banking as a Service' to blend traditional banking with modern customer preferences.
Neobanks leverage modernised platforms to acquire customer data, enabling personalised services and a seamless banking experience with a remarkably simple process: sign up, download the app, and start managing your finances instantly. Among other benefits, they offer low or nonexistent costs for using their services, such as withdrawal fees, account maintenance, and fees incurred while exchanging currency.
Besides, their agile operating style allows swift adaptation to dynamic and ever-evolving market and customer dynamics. While neobanking might be a new concept in Bangladesh, it is a daily reality in developed countries. Even in our neighboring country India, many neobanks (such as Freo, Jupiter, Instant Pay, etc.) are reshaping the Indian banking landscape by focusing on online accessibility, user-focused design, technological innovation, and personalised solutions.
A fintech startup named "Happi" is set to launch in Bangladesh as a neobank to provide a new digital banking experience, while teaming up with Dhaka Bank and Mastercard. They are working as a distribution partner under its brand name, which highlights the untouched market gap for FinTech companies.
Munshura Hossain Faria
Undergraduate Student
North South University
© 2024 - All Rights with The Financial Express
