Should I Consider Switching to a Neobank?

Neobanking is the new modern-day alternative to traditional banking that has recently been gaining popularity amongst tech-savvy customers. Neobanks are 100% digital financial assistance platforms that can be easily accessed from anywhere.

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What Perks do Neobanks Offer That Traditional Banks Don’t?

Aside from the fact that neobanks offer an online banking service that can be utilised through an application and/or website, they offer other perks as a result of the technological nature of how they operate.  

1. Neobanks offer lower fees and higher interest rates on checking and savings accounts for customers. This is because they do not require any physical bank branches, which helps them save on overhead expenses.

2. Setting up an account is simple and environmentally friendly. Neobanks boast a quick and easy onboarding process for new customers that do not require a complicated amount of paperwork.

3. Neobanks offer a convenient way to check on transactions, manage your finances, and make payments 24 hours a day. So long as you have a working device with internet connection, you can utilise neobanking services from anywhere, at any time.

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Things to Consider About Neobanking – The Downside

Though neobanks come with their fair share of benefits, it is important to consider the disadvantages you may face when switching from a traditional bank to a neobank.  

1. Are you tech-literate? Since neobanks are based completely online, they would not be an ideal option for you if you are not familiar with how to access their services through their application and/or website.

2. Neobanks usually only function as a checking account with loans, foreign currency exchange and business cards. However, if you or your company frequently carries out complex financial transactions that are beyond these services, a neobank may not be the right option for you.

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Should I Consider Switching to a Neobank?

Are you a tech-savvy individual looking for basic financial services? If so, it seems like neobanking will be the right move for you. However, you might want to consider remaining with your traditional bank if you are a cash-only business with many employees and frequently finding yourself requiring complex business financing services.

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Sprout with Us!

Sprout Asia wants you to focus on what you do best, while we take care of the rest. That is why we offer budget-friendly accounting services, so that our chartered accountants can manage your finances with ease and accuracy.  

Feel free to reach out to us with any questions you may have about our services, and we will respond to you within 24 hours.