In what circumstances should you consider opening an account with a non-bank rather than a physical bank?
The shift to online services is a global trend that has been accelerating over the past decades. The pandemic gave an additional boost to digital solutions, as people around the world discovered the convenience of receiving services without leaving home – skipping trips to offices, shops, and even schools. Neobanks also experienced strong growth during this period.
Although many still treat them with caution, seeing neobanks as an untested innovation, in fact, they first appeared in Europe back in 2015. By 2018, there were about 60 neobanks worldwide, and by 2021 this number had grown to 319.
What is a neobank?
A neobank is a financial institution that operates entirely online. Such organizations have no physical branches or in-person consultants, but often provide more competitive conditions for clients.
Neobanks come in two main formats:
- Digital divisions of traditional banks – fully online products that may operate under the parent brand or under a separate name.
- Independent neobanks – new players created exclusively for the digital market.
They provide a wide range of services: from opening an account to handling cryptocurrency transactions. To start using a neobank, all you need is to download an app or log into a website. Some may still maintain administrative offices, but they don’t serve clients in person.
Importantly, neobanks are regulated by local financial authorities. You can always verify their payment and financial licenses to ensure you are working with an accredited institution.
How do neobanks work?
Neobanks are highly client-oriented. Despite remote interaction, they focus on resolving issues quickly and efficiently. Their flexibility and responsive customer support are often highlighted by users as a key advantage.
Benefits of neobanks
- Cost efficiency. With no expenses on physical branches or large in-house staff, neobanks can offer cheaper products and lower, more flexible fees.
- Speed. Online banking reduces most operations to just a few clicks on a smartphone or website. Many neobanks also emphasize faster transaction processing compared to traditional banks.
- Global access. Neobanks are not tied to a single country, making international transfers and cross-border operations easier and more convenient.
Mobile banking has transformed the financial industry. Increased competition has pushed banks to improve user experience, app design, and customer service — making digital finance more client-friendly and innovative.
Why now is the right time
For entrepreneurs, now is an excellent moment to open a corporate account with a neobank. Business banking through digital platforms is not only more affordable but also safer, as many established players with a proven track record are available. Entrepreneurs can review reputations, read feedback, and choose reliable providers.
Examples of neobanks:
- Paysera
- Wise
- Revolut
Our partners are boutique neobanks that combine digital flexibility with personalized service. Each of our clients is assigned a dedicated private banker. All transactions and interactions happen remotely, but you won’t be left alone with generic support. We carefully select neobanks that provide individual solutions and high-level service.
To open a private or corporate account in a neobank, contact Intelligent Solution Group.
