The retail banking world has come across many challenges over the past few years. One more new challenge, in the name of Neobank, in Europe, has emerged in the form of a new entrant from the FinTechs world. Neobank is attracting more and more customers by presenting new innovative features, well-designed interfaces and unrivalled customer experience. In the present scenario, these Neobanks are showing themselves as true competitors to the more ‘traditional’ banks.
In the last few decades, retail banking hasn’t changed much for customers. Banks have seen profitability as the main objective; have not seen the investment in customer experience as top-priority. We have been ‘consuming’ banking the same way for decades, whereas many other industries have seen with radical new usages that are appearing.
The transportation sector is one of the best examples to illustrate how new technologies have enabled real evolutions for the whole sector. The sector has seen so many big changes thanks to the aggregator companies like Uber, Ola and Blablacar. Another example is tourism with the rise of companies like Airbnb and Oyo. Neobanks like Revolut and N26 are bringing transformations in similar lines to the banking world, ‘uberising’ banking in a big way.
Neobanking: Another innovation?
With innovative concepts and new players, there seems to be no shortage of fresh things that are happening nowadays in the banking industry. Have we ever heard of the banks - Moven or Simple, or GoBank or Bluebird or Mobile Money? These are all the names of Neobanks.
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