Market Trends of Middle East and Africa Neobanking Industry
This section covers the major market trends shaping the MEA Neobanking Market according to our research experts:
Advanced Technology and Security are Driving the Market
Since neobanks operate exclusively online, they leverage advanced technologies to build secure and robust banking structures. With cybersecurity at the forefront of their operations, neobanks aim to increase customer safety and satisfaction. By harnessing the powers of Artificial Intelligence (AI), Robotics Process Automation (RPA) and cloud analytics, they build secure systems that are fast and able to mitigate cyberattacks.
With security features like biometric verification, 2-factor authorization and encryption, neobanks are safe and convenient to use. Customers can access their bank account and financial information anytime and manage their money more effectively without ever visiting a bank branch.
Faster Loan Processing, Lower Fees and Higher Interest Rates
The traditional banking system has been infamous for its time-consuming and intricate loan disbursal process. However, neobanks are optimizing the loan process by streamlining the rigid structure of traditional banks. With little or no paperwork and online verification, applying and qualifying for a loan is as easy as signing up on a website. With easy access to the amount and interest rates, customers can choose which loan they want and get instant loans as soon as their credit scores are verified.
Perhaps the greatest advantage neobanks have over traditional banks is their exclusive digital presence. Since neobanks do not have to invest in brick-and-mortar branches and infrastructure, they are able to enjoy lower operational costs. As a result, neobanks are able to pass on these benefits to their customers by way of low or no fees and high-interest rates on deposits. Because of an online-only mode of operation, they are able to offer seamless international payments and money transfers at very low rates.
