Neo-bank is also called as online bank or digital bank. It is a financial institution that provides banking services exclusively online without a network of physical branches. Neo-banks have emerged with the advent of the Internet and the digital transformation of financial services and offer banking services similar to traditional banks, such as current accounts, bank cards, loans and savings. The difference ? Their processes are completely digital.
How neo-banks work
Like a traditional bank, customers can access their account through a mobile application or website and conduct online transactions. They often have the advantage of offering competitive rates and a more transparent and personalized user experience than traditional banks. They have many other advantages for customers, including accessibility as the banking services of neo-banks are accessible to all, even those who do not have access to a traditional bank or are unable to travel. features, their simplicity, their transparency, their ability to innovate and adapt services to the specific needs of their customers, thereby increasing customer satisfaction and loyalty.
How do neo-banks stack up?
Neo-banks differ from each other in many aspects, such as the products and services offered. That’s why it’s important to look carefully at what’s included in them before making your choice. Some specialize in areas such as international payments or solutions for freelancers. It is also necessary to keep in mind the fees and rates which vary greatly from one to the other. Additional features may be chargeable. Above all, features and tools, such as budgeting tools, expense alerts, analysis reports, etc. may differ. Some are even ahead of innovation. Not all of them have the same geographical availability. Some neo-banks are limited to certain countries or regions, while others operate internationally.
Example of Quanto and Shine
Qonto and Shine are two popular neo-banks in France that offer services tailored to business accounts.
Qonto is positioned as a bank for corporates and the self-employed, with professional account offers tailored to the needs of each company. Thus it offers a variety of professional bank cards, with advanced functionalities such as the possibility to limit expenses, block or unblock cards, and monitor transactions in real time. It offers features for neo-bank invoice management, VAT management, expense tracking and synchronization with accounting tools. Qonto’s prices are relatively high, but Neo-Bank has advanced features for businesses that need them. Don’t hesitate to use this Qonto promo code.
Shine, for its part, is positioned more on entrepreneurs and the self-employed. Thus it offers a professional bank card with advanced features, such as the possibility to block or unblock the card and monitor transactions in real time. It provides features for invoice management, VAT management, expense tracking and synchronization with accounting tools. The Shine’s prices are relatively low, but the Neo-Bank has less advanced features than the Konto.
Are neo-banks suitable for business accounts?
Most of them offer services tailored to business accounts. Indeed, entrepreneurs and freelancers can benefit from features to facilitate their cash flow and the management of their professional finances. Note that some have features specific to business accounts, such as invoice management, synchronization with accounting tools, sending quotes and invoices directly from the mobile app, or the ability to track real-time business expenses. However, it is important to note that not all neo-banks offer customized services for professional accounts. So you don’t need any. Some may have limits on transaction volumes or amounts that may be detrimental to your business. Hence it is recommended to compare the offers thoroughly and choose the one which includes features specific to the companies and caters to their particular requirements.