Like banks, these entities offer basic services such as payment accounts, cards and, on occasion, even loans, with the singularity that they do so exclusively through digital channels and especially through mobile applications.
However, even with this type of service clear, doubts arise about which entities can really be considered «neobanks» and which cannot, since there is no legal definition or regulation in this regard. And in addition, it is also increasingly common when talking about «neobanks» to fall into other categories such as «challenger banks», which offer services for individuals and have a banking license.
For the customer looking to have all the financial services in the same entity, it is not, since the «neobanks» are usually specialized in very specific products (accounts and cards), but they could be an alternative for a public that don’t mind working with several different providers.
As they are smaller companies than traditional banks, they can be more agile in applying changes and improvements to their processes and testing different technologies and products, which would allow them to respond more quickly to customer needs.
Among the main advantages are the price and conditions of its products, which can be «very competitive» when compared to those of traditional banking thanks to the fact that they operate exclusively online, which can in turn be a barrier for other customers.
On the other hand, it must be borne in mind that many of these «neobanks» cannot be the only financial option for a client, since they still do not allow direct debiting of unemployment benefits, the payment of pensions or the payment of taxes.