Neo Banking shoot up

Covid19 lock down increased the usage of neo banking facilities. Neo banks are those digital banks which does not have any physical branches like GPay, PhonePe etc.

They are flourishing and are growing popular among home makers and neighborhood Kirana stores.

What exactly is the friendliness felt with them for customers. They do not need deposits, does not need your id proof, only require a mobile number that is linked to an active bank account.

Speed is their competitive advantage. There was a time when we travelled all the way to a branch to deposit and withdraw cash, awaited in long queues. Then gradually the function turned up to Automated Teller Machines (ATM)which are capable of receipts and deposits as well. Any ATM can give you cash. Slowly people began doing RTGS, NEFT, Instant Money Transfer which hardly took about 2 minutes.

Then the speed further reduced when transactions were done through Banking mobile applications which took less than a minute.

Neo banks are efficient in terms of helping customers by reducing the time by way if adopting to agile and lean business models. Send cash with in no time. It pays you back for your first usage.

What next is left with the companies themselves. If they adopt disruptive technology, it can thrive for a short-term by the time new disruptions take away the market.

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