Neo banks and fintech companies are backed by the logic of the digital revolution and offer a whole new customer experience. They are easily accessible as customers need not visit any branch or stand in long queues to fill out forms to avail banking services. Everything is completely digitized and can be accessed with just a few clicks using a smart banking application. In this technology-driven world, traditional banks need to up their game.
According to Statista, the market size of neo banks and fintech companies is forecasted to reach a value of 722.6 billion U.S. dollars by 2028.
Here are a few things that traditional banks must learn from new-age neo banks and fintech companies:
Neo banks and fintech companies leverage the power of artificial intelligence (AI) tools to automate both front-and-back-office processes driving financial inclusion. Process automation not only helps banks reduce operational costs but also eliminates the chances of human errors. Hence, using AI-powered tools, traditional banks can automate various operational processes like loan management, account opening, and documents verification, leaving room for their employees to focus more on customer engagement.
Flexible cloud infrastructure
Neo banks and fintech companies use smart AI-based cloud solutions to store and manage data effectively and support applied analytics, which traditional banks find challenging. These solutions allow banks to create a flexible infrastructure making information related to customers and accounts easily accessible to all employees. This results in better customer insights, enhanced efficiency, innovation, agility, and even reduced risk of stolen data.
Personalized customer experience
The speed at which neo banks and fintech companies have managed to entice customers is nothing but impressive. This could be easily understood, seeing the steady increase in the number of online and mobile banking users between 2020 and 2024. As of 2020, around 1.9 billion customers actively used online banking services worldwide, which is forecast to reach 2.5 billion by 2024.
Every customer has different requirements from their bank, and one service cannot suffice all purposes. By deploying edge computing and AI, neo banks and fintech companies can easily decipher changing customer requirements and provide customized products and services. Customers love additional services and security these banks provide, including facial recognition and customized offers on the credit card. Traditional banks must also proactively extract customer insights to bring agility in critical banking processes like customer onboarding and KYC verification and strive to deliver a uniquely personalized experience to their customers.
The adoption of new-age technologies has revolutionized the banking industry, and this coronavirus pandemic has just accelerated the digitization process. Digitization worked perfectly in bridging the gap between what customers want and what banks can deliver. Neo banks and fintech companies are equipped with advanced solutions that offer a unified view of their customers, real-time, and AI-powered insights to serve their customers better. With customers having a myriad of options to explore in this digital age, it has become more critical than ever for incumbent banks to follow the roadmap of neo banks and fintech companies, prioritizing customers’ demands.
Arttha, a unified fintech platform, can help banks and financial institutions achieve their digitization goals and provide a differentiated customer experience. To know more about the solution, get in touch with our team now.
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