Neobanking – a security minefield?

Neobanking refers to a growing wave of 100% digital banks, which are customer-driven by nature and with a special focus on delivering frictionless money management and payment experience. 

Of course, internet security remains a key concern, from everything to monitoring by the banks themselves, to ordinary consumers sensibly using the best antivirus.

Globally, it is estimated that 73% of all consumer interactions with banks are done via digital channels and, in the UK, 13% of consumers have already taken the plunge with Neobanking.

Neobanks challenge incumbents in the financial services industry by relying on technological breakthroughs and constant updates to provide features and services that rival, and often surpass, those offered by the bricks and mortar banks. 

And whilst Android apps and iPhone apps for banking are still not up to par compared with those offered by traditional banks when it comes to payments, they are quickly catching up. Beyond that, they beat their traditional counterparts in other areas such as money management, customer interaction and account management.

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Most don’t have to rely on the same legacy systems therefore Neobanks can enjoy operating costs as much as 40 — 70% lower than those of traditional banking. And product development in Neobanking is significantly faster by relying on cross-platform-ready technology such as JavaScript. 

They can also rely on third-party integrations to save time and money, while also keeping the flexibility to iterate according to customer demand. With the bigger focus on user experience, it’s no surprise that generally neobanks’ satisfaction ratin