New technologies have undoubtedly changed the world we live in, and they have also changed our daily habits. Banking is no exception to this rule. The rise of modern neobanks proves how different technologies have already reshaped traditional industries, including banking. However, the digital era is by no means a ‘no problem’ era, and users may experience difficulties when choosing and using the services of a neobank. Unlike traditional banks, where these problems can often be solved with a simple visit, neobanks only provide online services.
As more and more people conduct their business online, better digital solutions are needed. This is precisely why choosing a good neobank is important in the digital era. Neobanks offer traditional and digital banking solutions, but they operate with no physical branches. This makes the customer experience dramatically different from that of using a traditional bank. However, there are numerous advantages to using a neobank. People can save time and money by using a neobank, they usually enjoy a friendlier interface or app, and they can also access their accounts and perform transactions anytime, anywhere. Moreover, neobanks are undoubtedly more sustainable than traditional banks.
Before choosing a neobank, however, there are a few things to consider, like what are the top players on the market, and what services the bank should provide.
Chime
Chime is a financial tech company based in the US that has been offering mobile banking services since 2013. While its main office is located in San Francisco, California, it only provides digital services to its clients. Chime’s “SpotMe” service makes it stand out among other neobanks, because it allows customers to overdraw their debit cards by up to $200 without paying overdraft fees. The company also gives early access to direct deposits, so customers can get their paychecks up to two days sooner than normal. This is particularly useful to those who may need to use their money fast.
Already featured in The Wall Street Journal, Forbes and The New York Times, Chime is one of the most well-known financial tech companies in the world.
Revolut
When it comes to global neobanks, Revolut is undoubtedly among the most famous. This financial tech company and neobank is based in London, UK, and it provides digital banking solutions for both customers and businesses. Revolut was founded in 2015, but it has grown considerably since. Today, it helps over 45 million people around the world and 500,000 businesses to better manage their money. Revolut is famous for providing its users with numerous services, features and options. These include multiple accounts for swapping currencies, physical and virtual cards, crypto trading features, stocks and commodities investment options, and more.
According to its own website, Revolut helps its customers to spend, send, and save money smarter. It is also available in more than 160 countries and regions around the world.
Starling Bank
Like Revolut, Starling Bank is also a UK-based neobank, with offices in London, Cardiff, Southampton and Manchester. While for now it only offers 24/7 customer support to its UK customers, it may be interesting to know it is the first and only bank in the UK to be founded by a woman. Moreover, 40% of its top management team is composed of women, as well as 43% of its overall team. Starling Bank offers 100% online signup and use, as well as zero costs for use abroad and high security. Although it has no physical branches, it also provides customers with fully regulated UK bank accounts.
Another impressive fact about Starling Bank is its commitment to protecting the environment. The financial institution launched the first Mastercard cards made from recycled plastic, and it also paid to have 100,000 trees planted.
Yotta
According to Doola, Yotta is one of the top financial tech companies based in the US. However, there is one notable difference between the other companies listed above and Yotta, as it combines the strengths of a neobank with the perks of winning the lottery. Unlike other financial tech institutions, Yotta allows its users to compete for different prizes, make savings by playing games, and it also gives them a chance to win considerable amounts of money. However, Yotta is a newer player in the market, and its banking services might be still less advanced than those of its competitors.
While other financial institutions focus on providing their clients with the best digital features or better banking services, Yotta gives them multiple chances to win cash prizes and have fun.
SoFi
Another important American financial tech company is SoFi, a neobank that was initially founded to help students manage their loans. According to FinTech Magazine, SoFi ranks second in its top 10 neobanks chart, making it one of the most important digital banking organizations in the US. Unlike Yotta, it provides users with access to a vast mobile banking platform that features multiple investing, loan refinancing options, as well as credit cards. This inclusive approach attracts both private individuals and businesses that are looking for a great solution to manage their money.
SoFi has a complex yet effective architecture that can help customers manage, save, and invest money with ease. Moreover, it comes with the important advantage of being an American company.
What to consider before choosing a neobank
There are numerous things to consider before choosing a neobank. However, the first and most important thing may be to look for the neobank that best fits your needs. While financial institutions like Yotta can make banking fun, neobanks like SoFi and Revolut boast a complex architecture that provides multiple financial services to its clients. Moreover, neobanks like Starling Bank promote inclusion and diversity, and they are also committed to protecting the environment. Some financial tech companies are also highly recommended by the media; for example, Chime has been featured in The Wall Street Journal, Forbes, and The New York Times.
While the information above is important, users should also remember to read reviews and check ratings before committing to a neobank. After all, the best way to make sure you choose the right bank is to listen to those who are already enjoying its services.
