Neobanks are transforming the financial services industry by expanding banking solutions and driving innovation. Underserved businesses usually pay a lot of bank fees or are even pushed out of banking services, which is not acceptable.

Neobanks, also called digital banks or online banks, are taking a prominent role in modern banking and working to make real change, particularly for those businesses that have not been well-served by traditional banks.

As Singapore embraces digital financing, these modern banks appeal to tech-savvy customers looking for efficient, affordable, and modern banking solutions. Neobanks are mobile-first and digital fintech companies that promise advanced financial services, lower fees, and transparency. These financial entities have successfully leveraged advanced technology to offer simplified banking experiences.

Let’s explore how neobanks are transforming the banking industry and helping underserved businesses by providing them with fair and inclusive financial solutions.

What is a Neobank?

A neobank is a digital-first financial institution that exclusively operates in the digital space and offers streamlined banking services online without physical branches. They provide a range of financial products, including business accounts, loans, money transfers, and credit and debit cards.

Neobanks usually focus on specific clientele, such as small to mid-sized businesses, millennials, or underbanked populations. Unlike traditional banks, neobanks aim to deliver a more transparent, convenient, and personalized banking experience. Moreover, they collaborate with established banks to obtain regulatory licenses and access to banking infrastructure.

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Features and Services of Neobanks

Neobanks have important features that offer consumers convenience and more favorable conditions than traditional banks. Here are the important features and services of Neobanks.

Digital Account Opening Process

Neobanks have transformed the account opening process by allowing customers to open an account online. Individuals can submit the information online, upload their documents, and set up a new account without visiting a branch or filling out forms physically.

User-friendly Mobile Banking Apps

Neobanks feature mobile banking apps and web-based platforms that serve as customers’ primary interface to manage their finances. You can make all deposits and withdrawals from anywhere, anytime, through intuitive apps or websites. The applications provide extensive functionality and allow users to transfer funds, track balances, review transactions, and do a variety of banking tasks.

Multi-currency Accounts

Neobanks offer multi-currency business accounts for business owners traveling or conducting business globally. These business accounts allow users to hold and make transfers in multiple currencies without paying unfavorable exchange rates.

Savings and Investment Options

Another valuable feature of these digital banks is that they provide users with multiple savings and investment options. Individuals can invest in diverse portfolios, engage in online asset trading, and set up a digital savings plan that helps them increase their wealth, grow their business, and accomplish their financial goals.

Cost-effective Money Transfers

Neobanks or fintech companies have disrupted the traditional money transfer market by offering fast and cost-effective transfers. They benefit businesses with global financial needs by reducing money transfer fees and processing times via harnessing advanced technologies.

Note: Fazz Business, an established neobank in Singapore, offers free local transfers and low-cost international money transfer services.

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Responsive Customer Service

Neobanks prioritize personalized customer service and support to ensure a positive experience for all users. Their mobile apps and websites offer handy access to email customer support and live chat. Customers can quickly get help and resolve any banking-related queries through support.

Advantages of Neobanking for Small and Mid-sized Businesses

Let’s look at the benefits neobanks provide to businesses not well served by traditional banks.

Lower Fees

Neobanks charge very low fees compared to traditional banks because they operate with overhead costs of running physical branches. As a result, they can offer customers more competitive rates. Businesses can benefit from competitive exchange rates, lower transfer fees, and reduced transaction costs that can save a lot of money.

Streamlined Account Management

Neobanks provide businesses with a user-friendly and simplified approach to managing their accounts. They offer diverse financial management tools that can track expenses, categorize payments, and set savings goals. Businesses can effortlessly check transactions and start payments through mobile and online platforms, which reduces the administrative burden and promotes better financial decision-making.

Advanced Financial Services

Neobanks collaborate with numerous fintech firms to establish interconnected networks that offer a full range of financial services. Businesses can access an array of advanced financial services through a single online platform. This collaborative approach makes sure that companies can easily access a broad range of financial solutions within a single system.

Seamless International Transfers

Neobanks are created with global reach and foreign businesses in mind. These online banks offer businesses multi-currency accounts and lower FX rates for cross-border payments to help businesses make smooth international transactions and expand their business to foreign markets.

Neobanks vs. Traditional Banks

A primary difference between traditional banks and neobanks is their mode of operation. Neobanks operate digitally without physical branches and offer the majority of financial services provided by traditional banks. They might be a more attractive and beneficial alternative for customers due to lower fees, convenience, fast international transfers, and better deposit interest rates than banks.

Moreover, neobanks have established partnerships with various fintech companies to expand their services beyond traditional banking. They provide customers with diversified services like insurance products, investment options, loans, and budgeting tools.

Ultimately, the decision to choose either a neobank or a traditional bank depends on business needs and preferences. If you’re running a small or mid-sized business and looking for affordable yet best banking solutions, neobank is the perfect solution for your business finances needs. When choosing between a traditional bank and a neobank, it is best to consider crucial factors like fees, features, account options, accessibility, customer support, and security.

Fazz Business- Leading Neobank for Underserved Businesses in Singapore

Fazz Business is a neobank offering fair and inclusive fintech solutions to small and medium-sized enterprises in Southeast Asia, providing a streamlined account opening experience and easy access to core financial services. With the Fazz Business Account, customers can make free local transfers as well as send and receive money internationally at a low cost.

Fazz Business takes pride in its business account, which can be set up easily without needing any tedious paperwork. As a prominent fintech company in Southeast Asia, Fazz Business specializes in providing financing solutions for modern businesses without any hidden costs, high rates, or monthly fees that come with traditional business banking.

The company provides businesses with multi-currency accounts, simplified international money transfers, and lower FX rates on cross-border payments. Users can transfer funds in 50+ currencies at lower FX fees and reduced processing times compared to traditional banks. With Fazz Business Account, you can pay employees globally, receive payments smoothly, and manage your financial flow all in a single place.

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