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Traditional banks vs. neobanks: A short comparison
01:42 Mins Read
This video discusses the key differences between traditional banks and neobanks.
Neobanks have been gaining ground at breakneck speed in India. Their customer base grew from 7.7 million customers in 2018 to around 20 million in 2019. That’s a growth rate of over 150%! But how to neobanks differ from traditional banks? Let’s see. Traditional banks have a physical establishment, While neobanks are predominantly digital in nature, offering services over the web and mobile. Traditional banks have been around for over a century, While neobanks are a more recent phenomenon, gaining ground over the past decade. Another point of difference is that traditional banks tend to establish long-term, in-person client relations, But neobanks keep their client relations virtual, flexible and easy to modify. And lastly, traditional banks, having been around longer offer a wider range of services such as ATM services, loans, guarantees, foreign currency exchange, and more. Neobanks in general currently offer fewer services, but they are fast catching up. So, that sums up this short comparison between traditional banks and neobanks. In the next chapter, we’ll discuss the rise of digital payments in recent years. Stay tuned!