In the age of neobanking, it seems counter-intuitive to be locked into a long-term relationship with an establishment that hasn’t changed in 300 years. With outdated processes and tedious hoops to jump through, it’s high time you said goodbye to the traditional financial institution and treated your finances with the love and respect they deserve.
From an outdated bank to an even more outdated credit union, you don't need to settle for financial institutions that make the rules and take your money. It's 2022, you have options. And we know, the process to switch from your current bank is tedious, but with the technological advancements of today, that's a thing of the past.
You deserve better from your financial institution
Knowing you deserve better is the first step toward claiming back your power. It’s time to say goodbye to high, complicated fee structures and hello to transparency, minimal fees, and knowing exactly where your money goes.
As the world rapidly transitions into a more digital space, why keep the management of your finances stuck in the dark age? Fintechs are making big strides in providing the masses with new-age financial services with faster processing times and more transparent fees. Your financial livelihood deserves better.
Neobanking vs traditional banks
Let’s take a moment to define neobanking. Neo comes from the Greek word “new”, literally meaning “new bank”. These financial technology companies (fintechs) offer users access to financial services through online digital platforms, an online bank of sorts. While not all fintechs are created equal, the majority require special licensing and provide something similar to a checking account with web and mobile services.
A traditional financial institution refers to the age-old establishment that in all likelihood is the same bank that our grandparents used in their days. Innovation in the traditional bank sector has been stagnant over the last several decades, and little has changed in these money-making corporations. They also tend to have deep political, financial, and social roots in their countries of operation. Not to mention poor customer service.
- Neobanking companies are largely like a digital online baking providers, whereas traditional banks have a physical presence alongside online banking services.
- Fintechs offer standard services such as checking and savings accounts, money transfer and payment services, low to no overdraft fees and some financial education tools (budgeting tools, etc). On the other hand, traditional credit unions present a much wider selection of options like lines of credit, financial advisors, credit cards, etc.
- While all traditional banks are fully licensed and chartered, many fintechs do own different as significant licenses such as EMI licenses. In some cases, in order to insure their products, neobanks do choose to partner with a primary bank.
- Many banks focus more on developing strong, lasting relationships while neobanks typically provide more flexible accounts than just a simple bank account, which require less paperwork and can be used worldwide.
- Online banks tend to overwhelm clients with a variety of complicated fees while neobanks charge much lower fees for their services, including for most : no monthly maintenance fee.
- While banks provide you with a face to face agent, fintechs do not, however they still provide quality customer service representatives ready to help you online with anything you might need. In short both boast different yet great excellent customer service.
Fintech do provides a new-age approach with fewer fees and more transparency, but with all, if not most, of the bells and whistles that your current banking platform provides.