The rise of FinTech has not been an overnight occurrence. Instead, the banking and financial industry ecosystem has evolved with pace. From onboarding bank customers to high-speed trading strategies, technological advancements have seen neobanks mushroom prolifically.
Providers of these services, referred to as neobanks, challenger banks, and digital banks, seek to be more accessible than their traditional counterparts. They are changing the face of banking due to decentralization, quasi-democratization, and increasing demand for instant results. This digitized disruption has been central to the accepted and expected changes that continue to metamorphose.
They aim to differentiate themselves from bricks-and-mortar by offering innovative services with solid digital interfacing, appealing to many who are unbanked and underbanked. By using BaaS platforms, neobanks offer an insured account, investment, and payment service. Traditional banks benefit from this offering of BaaS platforms, as the digitized clientele become their customer and not their competitor.
They can monetize their infrastructure and establish solid relationships with FinTechs that allow more opportunities and additional data from third parties.
Given that neobanks can work with their traditional equivalents, most continue to operate under their ‘umbrellas’ without needing to gain appropriate licenses or national bank charters.
Youtap brings BaaS and neobanks to the contemporary bank, seamlessly to the broader banking fraternity. Youtap’s cloud-based architecture enables banks and financial providers to launch new and innovative services that work in unison with their neobank competition. Their products are customized, scalable, and secure. Youtap’s platforms enable its client base to be collaborative and competitive in an increasingly combative and digitized realm.