7 ways in which neobanking will enhance the way we bank

Since its introduction, neobanking has taken the world of finances by storm. With an option for 100% digital alternative over traditional banking, its branchless nature actually becomes a major contributor to its success. Neobanks in India act as partners to conventional banks to extend the digital banking experience to customers. Here are seven ways in which it has enhanced operations for Businesses in the era of contactless payments:

1. Cost-effective mode of banking

Neobanks are detached from the burden of legacy infrastructure, unlike traditional banks. Lesser costs of maintenance at the back-end of such platforms result in customers having to pay reduced processing fees to carry out transactions or utilise any other features available to them.

A merchant-first approach incentivises one’s employees to stay ahead of the competition, while also maximising customer acquisition and retention at the same time.

2. Additional features on same platform

The wide array of features integrated into neobanking services is geared towards making banking as convenient an experience as possible for the users on its platform. Automated accounting, digital payroll management, e-invoicing right upto GST returns filing with pre- integrated payment gateway to support collection and ease of reconciliation for multiple payment methods are all unique features available in one location for businesses to utilise efficiently.

3. Transparency and instant access to finances

When merchants partner with a neo-bank, they have 24X7 access to their finances. Users can also track the status and details of all the transactions carried out with the help of the platform round-the-clock, via the Internet. This is a huge benefit for modern businesses such as e-commerce and international platforms, where having intimate knowledge about one’s resources is a necessity at all times of the day (and night).

4. O2O faclitation

With Offline to Online facilitation Businesses need not employ complicated solutions or complicated integrations to collect payments online or to sell their goods online. Be it an automobile garage or a retailer, with pre-integrated solutions they can offer customers, multiple options to pay effortlessly via their preferred mode of payment. This also helps to increase their sales territory beyond conventional footfalls models. In addition inventory sold offline or online can be updated effortlessly with options to trigger alerts on reaching preset re-order levels, to increase conversions & efficiency.

5. Reporting

Neobanking platforms also utilise the data available for creating real-time reports. The presence of transaction details on the same platform as the generation of these reports helps in minimising the effort required for compiling and comparing different financial data. Instant access to these numbers can be utilised by businesses for making more informed decisions.

6. Forecasting

The forecasting tools of reputed neobanks are known to be highly accurate in presenting an estimate of a business’s future earnings. Based on intelligent analysis, the predictive metrics can give entrepreneurs the direction they need to plan ahead of time. One’s current goals and finances, and a reliable estimate of how growth will take place, gives MSMEs further flexibility with their decision-making.

7. Hassle-Free Payouts

Neobanks also allow users to make vendor, employee, partner, and customer payouts without having to go through multiple channels in a time-consuming manner. Instead, the neo-banking platform acts as a single point of access for carrying out all these transactions in a safe and systematic manner.

The automated nature of neo-banking lends it its efficiency, while its personalised nature allows users to experience a unique connected commerce ecosystem in a growing digital economy.