If in the past a bank account, credit or debit card were practically synonymous with a bank, today new competitors in this industry are taking over each of these financial products in different ways, thanks to the development of technology and the expansion of the Internet. Within this group, neobanks stand out as an alternative to banks, which are attracting more and more customers with their mobile banking offer. But what exactly are they?
Neobanks are institutions that offer financial services with a particularity, they do it entirely through digital means, i.e., they do not have physical branches. They are literally a bank alternative, since within their portfolio there are products that we could call alternative bank accounts, payment cards, credit products, etc. But what makes these new institutions special?
Among the most important reasons are the low cost and convenience of neobanks. In fact, their products are of high quality and safe, with the advantage of being offered by an institution that minimizes operating costs by not using physical branches, paper and other expenses typical of a bank.
For example, at Blackcatcard, one of today’s many attractive neobanks, individual customers can open an IBAN account free of charge online in a matter of minutes. With this account they can manage their funds as they wish. For example, they have an alternative to bank transfers as they know them, because, without going to a bank branch, they open an account that allows them to make SEPA transfers without any limits. With Blackcatcard sending via this payment system is free up to the fifth SEPA transfer, from the sixth onwards a fee of 0.20 Euros is charged, quite low to be honest. Of course, receiving money via SEPA is always free.
On the other hand, corporate customers also find important advantages in the mobile banking of institutions such as Blackcatcard. In this neobank, the process of opening a business account is faster, simpler and less expensive than in a traditional bank.
Entrepreneurs must first open an account as individuals and then apply to open a business account. This saves time and money for people who surely spend most of their time developing their startups or large companies, attend conferences and other events, and therefore do not have time to go to physical branches to do what they can actually do on an app like the Blackcatcard app, in which entrepreneurs can manage their entire business budget in one place, to pay suppliers and employees, for example.
It should be noted that neobanks motivate their users to receive or store money in their accounts, and even spend it later, through loyalty programs, which is a further advantage in favor of these financial institutions.
Neobanks have a better relationship with partners that seek to attract more customers and in this context they can adapt more easily. This is the case of Blackcatcard, in which, thanks to agreements with strategic partners, users can receive up to 2.2% per annum on the money stored in the account. In addition, customers can receive significant cashback of up to 5% for purchases made with their Blackcatcard.
Of course, here we highlight only some of the most important advantages of mobile banking. While the financial industry is undergoing an accelerated development driven by neobanks, traditional banks are left to analyze their more modern competitors and adapt to the changes in the sector, just as the neobanks themselves did in the first place.