Customer experience – game changer for neobanks in retail

Customer experience – game changer for neobanks in retail

In the new banking world order, Neobanks continue their impressive march northwards.  With Brazil reporting  43% adults with digital-only bank account, India at 26%, Ireland at 22%, Singapore at 21%, Hong Kong at 20%, and UAE at 19% (online


bank adoption survey by Finder), the transaction value for Neobanks worldwide is expected to level out at $ 9 trillion by 2027 (based on Statista). 

Aided by typically lower fees, quick online verification, and customer-centric applications, customers, especially tech-savvy customers (18-34 years), trust the innovative services Neobanks offer.  The crucial differentiator, without a doubt, is customer


experience.

As a growth indicator for neo-banks, customer experience ranks just after fees/charges and security or risk-related considerations.  This becomes crucial when seen in light of the 2021 Plaids report.  The study posits that 30% of Americans use some form


of online banking, and while neobanks may not be their primary FI, they are being increasingly sought for their banking products.  Furthermore, the J.D. Power Direct





banking satisfaction study shows neobanks lead traditional banks in personalization and tech innovation but must close the gap when it comes to customer service.

So much, so that neobanking customers are


more unforgiving as compared to those who have accounts with full-service traditional