Which Neobank Should I Register With In Singapore?Download Now: FREE GST 2023 GuidebookDownload Now: FREE Employment Pass ChecklistDownload Now: Free Incorporation Checklist
Banking is a sector that has come a long way, always evolving and improving to make it more efficient, secure and convenient for customers. If you are thinking of trying out alternative banking methods, then you may have already come across the term, neobanking.
In this guide, we will explore what neobanking is, why it is becoming increasingly popular, and the factors you should consider before choosing a bank for yourself, together with some neobanking options in Singapore.
What is Neobanking?
Neobanking, as the name suggests, is a modern form of banking that is based on the internet and that uses the capabilities of the web and related technologies to provide financial services. They do this by the use of web-based applications and softwares that provide specialized banking solutions, such as savings and international transactions.
Today, these and many other terms are being used to refer to a type of bank that poses a great challenge for traditional banks.
Why is Neobanking Getting More Popular?
Neobanks challenge traditional banks in several ways, even though many neobanks are affiliated with them. These are some of the benefits neobanks offer that is setting them ahead and giving traditional banks a run for their money:
They Offer Stress-Free Account Creation
Opening an account at a bank is usually something you have to plan for weeks in advance. There are a lot of formalities, documents, and sometimes prolonged processing periods. All of that duress also comes with a significantly high processing fee.
Neobanks allow you to open an account on your mobile banking app, with minimal formalities and essential documents only.
Neobanks are User Friendly
Neobanks are popular for having easy-to-understand user interfaces. By being this user-friendly, clients who have trouble navigating the financial jargon and seemingly endless financial options become empowered.
Simpler user interfaces also mean that you do not have to spend hours with customer service agents when a problem with your account arises for a couple of reasons. First, problems will scarcely arise since using the app or software is straightforward, and second, you will probably find out what the problem is on your own.
Neobanks are Easily Accessible
In 2022, more people than ever before have access to the internet. Most people work, connect and organize their lives on the internet, and neobanks are taking advantage of modern human habits. Since people are already doing so much on the internet, it is easy to make them open to the idea of neobanking for their finances. The focus on online services, as opposed to the trouble of meeting physically, also means that neobanks can access clients from anywhere just by using their mobile phones.
Neobanks Have Lower Operation Cost
As mentioned before, neobanks often do without physical locations. This has the effect of reducing operation costs, and hence client costs, drastically. Therefore, transaction fees, processing fees, and even interest rates are considerably lower than in traditional banks Which is an attractive feature for potential customers to look forward to.
What Are Some Factors to Consider When Looking for Neobanks?
Although it may sound like the perfect idea, you need to consider a few things when considering a neobank to join:
- How will the advantages of neobanking add value to you and satisfy your needs
- What kind of reviews does the neobank have?
- How strong is the customer support?
- What mobile apps and software does the neobank provide?
What Are Some Popular Neobanks in Singapore?
Is a neobank what you need for your personal or business needs? Here are two popular neobanks in Singapore for you to consider:
Aspire is also popular among small-business owners for its zero monthly fees, easy integration with accounting tools, and unlimited virtual cards for you and your team.
The INFT neobank is popular for small businesses. The bank empowers small businesses by providing accessible loans. The loans require reasonable collateral, do not involve a complicated approval process, and are quickly disbursed.
Neobanking is the Future
You do not need to look any further for alternative banking solutions in Singapore; neobanking offers a unique, cost-friendly, globally conscious, and accessible means for you to handle your finances. Which neobank will you try today?
Sprout With Us!
Like the convenience that online financial services provide? Let Sprout Asia's chartered accountants handle your accounting documents so that you can focus on what you do best, while we take care of the rest!
Reach out to us if you have any queries and we'll reply promptly within 24 hours!