Online banks and Neobanks are both digital banks. Unlike online banks, which are usually attached to a traditional bank, Neobanks are not attached to any other bank. To know if a Neobank is an ideal solution for a company, we must first see the advantages and disadvantages it can provide for a company.
Definition of a Neobank
The Neobank is a digital bank whose account creation is done online. Also, not only does it not require proof of income as other banks do, but it offers both a novel solution to people with a bank ban and young freelancers who do not need credit.
Even though Neobanks do not have a counter, account holders can still easily withdraw money via payment (debit) cards at ATMs.
As Neobanks are online financial institutions not attached to traditional banks, they often have gaps in their services.
Advantages of a Neobank for a company
– The Neobank is more accessible to companies that want to work internationally because it offers very competitive rates and lower fees than other banks.
– No proof of income or other supporting documents are required to create an account, only your ID card is sufficient.
– No need to travel from the creation of your account to its management. Everything is done online through a platform or a site with an amazing simplicity.
– Its offers and services are ranked the cheapest in Europe and elsewhere. For example, the interbank exchange rate is most often applied without conversion fees when it comes to an international transaction.
Disadvantages of a Neobank for a company
– The offers and services of Neobanks are very limited compared to traditional banks. They do not offer credits and are unable to authorize overdrafts.
– The Neobank does not allow any financial services, namely: money investment, mortgage, savings account and even retirement.
– Since all transactions and operations take place online, the company will be unable to make cash and/or check deposits.
– The account management is totally dematerialized; everything is done through the application or the website of your Neobank. Also, the customer service is reduced to a simple chat or call.