Neo-banks have been accompanying us for a few years and offering us a different way of doing banking. Far from all traditionalism, they are entities with a strong presence in Europe and that are capable of offering the same services as traditional banks, although in a different way. We delve into the figure of neobanks and how they are transforming the way we relate to money.
What are neobanks?
They are entities that have broken into the Spanish financial system after years of good experience in many European countries. Great Britain or Germany have a great tradition in this regard. The main difference between a neobank and a traditional one is that the former offers a fully digital experience. Yes, a neobank does not have physical offices and its commissions are either non-existent or very low. They offer bank accounts and cards, in addition to other banking products such as funds, insurance or securities.
Neo-banks are licensed for e-money or EDEs, so some cannot be exactly considered banks. But neobanks have come to fill a gap in high demand, that of young people who did not want ties or who were looking for dynamism when traveling. By having low commissions, operating with a neobank is cheaper when it comes to withdrawing money abroad. These entities base all their experience in digital format, it is done through an app, as well as their customer service. Therefore, if what you are looking for is a personalized and more direct treatment, a neobank may not be a good option for you.
What do I need to open an account with a neobank?
Your ID and a smartphone or computer. The reason is very simple, the entity needs to verify your identity and for this it will require you to take a selfie with your ID visible, or to make a video call for an employee to verify your identity. In addition, neobanks, although not all, offer you a bank account with an IBAN from another country. In this way, you can have a bank account from Germany, Lithuania or the United Kingdom. Also do not fear for this, it is something totally legal for the purposes of the Tax Agency as long as you declare the benefits, if any.
Neobanks do not require a commitment to stay or anything similar, you can cancel your account as soon as you want. Likewise, maintaining an account is free and you will not be required to purchase any additional product, such as insurance.
What do neobanks offer?
Although it is already common for them to offer more and more products, neobanks base their strategy on offering bank accounts and debit cards. If you have an account in a neobank with a Spanish IBAN, you could direct your payroll or regular payments, however, if the IBAN is foreign, you will have problems. Neobanks are the favorites of those who frequently move around the world, they already offer free payments in foreign currency. For example, if you have your account in euros and you travel to London, you can pay in pounds without associated costs.
Generally, neobanks have agile, easy-to-use and very dynamic apps. They offer all their operations very clear, and security is not a problem, with facial or fingerprint recognition. They offer a level as good and efficient as that of your lifelong bank. Payments through your cards, Visa or Mastercard provide all the guarantees. The PSD2 regulation effectively regulates banking operations of all kinds.
These entities have come to revolutionize the way we enjoy our money, and having an account in a neobank is not a bad idea as an alternative bank. And if you go on a trip, they are a very necessary product that will help you save a lot of money in commissions.
