NEOBANKS VS FINTECHS EXPLAINED

[@niiodailayee6641]

JQ, what’s up boss. Okay so I realized most banks if not all are leveraging on digitalization strongly to enhance their offering, plus the use of AI to interface with consumers. Would you say there is a blend or dual functionality in their offering, ie playing the role of traditional banks and neo banks at the same time or just entirely distinct when it comes to the two banking roles?

[@JeremyQuainoo]

Hi Nii, yes definitely been a while. To your question, a traditional bank can't be classified as a neobank simply by embarking on a digitization or digitalization drive. Unless they are able to completely do away with all physical branches or at the very least ensure all transactions done in those branches are migrated to mobile or digital channels, they will remain a traditional bank with a digital offering. The premise of a neobank is to maximize the advantage of not having physical overheads at all, which translates into advantages in the digital offering when it comes to reduced fees and preferential interest. I hope that makes sense.

[@niiodailayee6641]

Absolutely. Well clarified. Thank boss