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Why Neobanks Are Right for Your Business
There’s no denying that the COVID-19 pandemic has accelerated the need for digital transformation in all industries, including the financial sector. The evolution of technology has disrupted the traditional way of doing things. Not to mention that customers today expect things to be done instantly and seamlessly by clicking on their smartphones.
For this reason, traditional brick and mortar banking services have pivoted their services online by adopting mobile or internet banking services. In fact, the worldwide market share of neobanks rose 6% in just two years (
What is a Neobank?
Advantages of a Neobank
Convenient and Accessible
Singapore is a digitally-savvy country, with approximately
As neobanks are entirely online and have no physical branches, this translates to more affordable operations and lower overhead than traditional banks. Doing so enables neobanks to offer lower fees and better interest rates. The UK neobank, Wise, even offers free monthly fees and requires no minimum balance to maintain an account.
Better exchange rate
The COVID-19 pandemic has proven that the work from anywhere policy is here to stay. The talent pool is not limited to one’s home country but extends almost anywhere. Neobanks have made it possible for businesses to get better exchange and transfer rates than a traditional bank.
Neobanks in Singapore
Founded in Melbourne, Australia, in 2015,
Established in 2011, Wise is one of the leading neobanks worldwide. It gives users and businesses a competitive exchange and transfer rate that makes it ideal for those looking to transfer funds internationally. With over 40 currencies, it allows businesses to pay invoices and handle payroll with ease, ensuring that they get the best value anywhere in the world without going over budget.
Similar to Airwallex, Revolut is a neobank that enables you to transfer internationally with multiple currencies at no transaction cost and ultra-low exchange rates. What makes it different is that it comes with a built-in expense tracker. This allows you to categorise spending and budgets and keep track of your expenses and cash flow.
Like their name suggests, neobanks are relatively new to the financial service space, and they offer a leaner service when compared to their traditional counterparts. For SMEs looking for the best business account in Singapore, neobanks may just fit the bill. Neobanks can help save money and get the primary job of banking, such as transfers done with ease. However, as time goes on and tech becomes more sophisticated, neobanks may offer a more comprehensive and personalised service down the line.
Regardless of your neobanking choice, Lanturn is here to help you manage your money and investments effectively with our qualified experts.
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