With the proliferation of so-called digital banks, it is sometimes difficult to know the difference between traditional banks and neo-banks. If you have any doubts, today we clear them all up for you in this article.
The FinTech revolution
It is said that Fintech is transforming the financial market, but why? Well, first of all we should say that FinTech is the fusion of the words financial and technology.
Fintechs are technology companies that offer to carry out certain operations such as mobile payments and transfers at a much cheaper cost than a traditional bank. For example, if you use Shasta to send money by SWIFT and SEPA transfer, it is much cheaper than if you do it in a normal bank. In the article Shasta: manda dinero al extranjero en euros y dólares, you will find more information on bank transfers and Shasta transactions.
Bank, online bank and neo bank
Traditional banks: banks that have a physical branch.
Examples: Caixabank, Santander or BBVA.
Online bank: they may also have a physical branch, but they are committed to the online channel, such as Openbank, ING or Evo.
Neo-bank: they are characterised by being a mobile application, they do not have a physical branch.
For example: Revolut, Bnext, Imagin Bank or N26.
The difference between the first two and the neo-bank is that the latter are characterised by the personalisation of the product and offer a much closer communication with users.
You may be asking yourself, what about FinTech? Well, FinTech are companies that provide financial services through technology, for example Shasta App is a FinTech because we offer technology and finance.