How secure is a neobank account?

How secure is a neobank account?

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Neobanks walk and talk like a real bank. They prove services such as chequing accounts, savings accounts, and the ability to spend and send money. Are they real banks though?

A neobank is essentially a tech company that provides banking services such as paying bills, receiving funds, and transferring money, all via a mobile app or website. What makes neobanks attractive is that they have lower fees than traditional banks and they offer a mobile-focused banking solution.

Those are just two of the perks though. In this article, we take a look at what a neobank is and how secure they are.

What is a neobank?

A neobank is a digital bank that offers online-only banking services. This means that you can do your banking entirely through a mobile app or website.

There are no physical branches, and all of your transactions are done through the internet.

What services do neobanks offer?

Neobanks offer most of the same services as traditional banks. This includes:

  • Paying bills
  • Receiving payments
  • Transferring money
  • Saving money
  • Investing money

How secure are neobank accounts?

The security of your neobank account depends on the security measures that the neobank has in place. Most neobanks use state-of-the-art security measures to protect your account and keep your money safe.

The good news is that neobanks invest a lot of resources and time into improving their online functions and security rather than in-branch services. Being entirely online means that that is where they can focus ALL of their energy.

Some of the security measures that neobanks use include:

  • Encryption: All of your data is encrypted, meaning that it is turned into a code that can only be deciphered by authorized personnel.
  • Multi-factor authentication: This is an extra layer of security that requires you to confirm your identity with a second device, such as your smartphone.
  • Fraud monitoring: Neobanks use sophisticated fraud monitoring systems to detect suspicious activity on your account and prevent fraudsters from accessing your account.

How can I protect my neobank account?

There are some things you can do to protect your neobank account, such as:

  • Enable two-factor authentication: This adds an extra layer of security to your account.
  • Choose a strong password: Use a mix of letters, numbers, and symbols in your password. Avoid using easily guessed words like your name or birthdate.
  • Avoid public Wi-Fi: Don't log in to your neobank account on public Wi-Fi networks. Wait until you are on a secure, private network.

Neobanks are becoming increasingly popular, and they offer a convenient way to do your banking. However, it is important to make sure that you are choosing a reputable and secure neobank.

What if I need help when neobanking?

In case you have any questions or encounter any problems, most neobanks offer a variety of customer support options. These include :

  • Live chat: Many neobanks offer live chat support, so you can get help from a customer service representative in real time.
  • On the app: You can chat to their customer support live on the app
  • Email: You can also email the customer support team of your neobank.
  • Phone: Some neobanks also offer phone support.

Make sure to choose a neobank that offers the customer support options that you are most comfortable with. That way, you will know that you can always get help when you need it.

How reputable are neobanks?

The reputation of a neobank is important and it is important that you choose one with a good name. After all, you are trusting them with your hard-earned money. There are a few ways to research the reputation of a neobank, such as:

  • Checking online reviews: A quick Google search will reveal any online reviews of the neobank.
  • Asking for recommendations: You can also ask your friends and family if they know of any good neobanks.
  • Reading the terms and conditions: Before signing up for an account, be sure to read the neobank's terms and conditions. This will give you an idea of what to expect from the bank.

The bottom line

Neobanks are a convenient and effortless way to do your banking, and they offer most of the same services as traditional banks. They are typically more secure than traditional banks because they invest heavily in online security measures. As we mentioned earlier, they also offer lower fees which is a massive advantage.

Have you ever trusted a neobank with your money?

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