Neobanks:- A new way of banking

Shreya Sinha   NEOBANKING The term neobanks first became prominent in the year 2017 to describe Fintech based financial service providers that were challenging the traditional banks. Neobanks, also known as online banks, internet-only banks, virtual banks or digital banks, is a type of direct bank that operates exclusively online without traditional physical branch networks. Neobanks  appeal to tech savvy customers who don’t mind doing most of their money management through a mobile application. By getting rid of physical branches and moving everything online, neobanks often save the cost of the physical branches, allowing them to cut fees and expand their online services.     HOW DO THEY WORK   Neobanks work solely online without any physical brick-and- mortar branches, independently or in partnership with traditional banks.   They partner up with banks and do sourcing and front-end management while all the transactions are processed by the banks. Imagine them being like the banks’ sa