Neobanking is a type of direct banking that operates exclusively online without physical branches. Their offerings are usually limited however this is something more and more consumers are considering nowadays due to its advanced benefits. Neobanking is one of the top fintech trends to look out for in 2021 and beyond.
Neobanking in the Philippines
UnaFinancial, an international financial group, found in their study that neobanks are set to deliver financial services to about 65.7 million people in the Philippines by 2025. People who belong to this demographic are aged 20-64.
In addition to this, a separate study found that the Philippines will reach the maximum possible Internet penetration of 81-85% by 2025 as well. This is backed up by their finding that the country’s development of online financial services can be faster if the government takes a combined approach to develop financial technologies through increased financial education and other legal processes.
How Filipinos Can Benefit From Neobanking
It’s nice to know that Filipinos are getting more and more options on how to access and manage their finances. Now, what advantages does neobanking present to Filipino consumers? Here are the top notable ones.
1. Flexibility and speed
Customers are given the option to avail themselves of self-service solutions when it comes to their banking experience. Neobanking allows for them to have access to more add-on offerings rather than a package approach. Plus, this fintech innovation gives them the freedom and convenience to access their accounts and manage their finances in just one click.
While traditional banking isn’t going anywhere anytime soon, more and more customers are also starting to realize how fast neobanking processes can get most of the time.
2. Innovative features and tools
This is one of the most remarkable factors that makes neobanking a go-to solution nowadays. More and more younger generations are becoming aware of handling finances and turning into digital tools to do so. Thus, financial institutions need to tap this market and innovate their way to cater to these generations’ needs.
Customer experience is key, so digital bank institutions or neobanks must look into how they can improve their mobile apps or websites to address financial health, budgeting, and savings solutions needed by their customers.
3. More focus on customer service
Since these neobanks are focused on their online operations, they can give emphasis on their customer service initiatives. Investing in ‘A-Z’ customer experience has been the go-to strategy of digital banks to further leverage their services and target more consumers.
Going Digital is the Future
While conventional processes are still here to stay, it’s undeniable that digital tools and advancements are taking over businesses and even our daily lives. Having said that, more and more tech professionals are expected to get hired to help organizations address the ever-changing needs of consumers. If you’re aiming to land a job in the tech industry, this is good news for you! Browse the available job openings in Bossjob to try your luck! You may also visit our career advice archives and job search tips to help you get started.