Neobanks Vs. Traditional Banks: Who will win?
When it comes to money, it is important to consider how we are going to manage our finances. There are many types of banks for gamers we have at our disposal to keep our money safe. We have compiled everything you need to know about Neobanks and Traditional Banks. At the end of this article, you will be able to take the best decision when choosing the most suitable one for you.
What is a Neobank?
Although the term Neobank may sound like something out of a video game, the word Neo is used to identify that it is a new type of financial institution. It may have some similar characteristics to a Traditional Bank and offer innovative solutions for their clients.
Neobanks are banking organizations that operate only digitally. They are adapted to the new demands of technology and lifestyle in most countries, and are part of the digital transformation of today’s world.
These institutions are becoming increasingly popular. They have low infrastructure costs and their ability to expand globally is more significant thanks to techology. All the customer support is provided online, and they are aimed at people more familiar with new technologies. Also to people that do not want to waste time waiting in lines at an office to do paperwork or have their issues solved there.
But, there are Neobanks of many types, focused on satisfying the needs of more specific niche markets like Ugami, a Neobank for Gamers. That is why you will be able to find one suitable for your work and your lifestyle. For example, there are Neobanks aimed at influencers, musicians, freelancers, and even gamers.
What is a Traditional Bank?
It is probably unnecessary to define this term in depth since many of us have had to deal with a Traditional Banks at some point in our lives. But, as a rule, a Traditional Bank is a financial institution that manages the money that customers deposit into their accounts. It offers different financial services, and provides customer service through its physical branches.
These types of banks are the ones we usually see when we go out on the street and are the ones that have been around for a long time. Hence why, in a certain way, they have such deep financial credibility in the real world.
What is the difference between Neobanks and Traditional Banks?
Of course, there are differences between Neobanks and Traditional Banks. Even if some essential functions as money transfers, savings accounts or debit cards are very similar.
Traditional banks generally have customer service in physical branches. and they can offer customer service and account management via telephone and online. Meanwhile, the Neobanks work entirely online. They have apps and digital customer service, and many transactions are within reach of a click (or tap if you are using a smartphone).
Traditional banks are fully licensed, have greater credibility worldwide, and governments recognize them. In the case of Neobanks, not all have banking licenses. Some are not recognized in other countries and usually partner with some Traditional Banks to ensure their products.
As far as service costs, traditional banks charge very high fees for almost all their services. Meanwhile, Neobanks charge low fees for services as everything is online and more straightforward.
The services may vary according to the type of bank. In general, the Neobanks for gamers offer checking and savings accounts, debit cards, rewards cards, money transfers, and more. But, Traditional Banks offer a more comprehensive range of services. Like the ones mentioned before, and others such as credits, loans, and investing services.
Traditional Banks ask for slightly stricter requirements to open an account. While Neobanks request very few documents, and opening an account is easy, and incredibly fast. You can have your account active and ready to use in a few steps.
So, although Traditional Banks are focused on building long-lasting relationships with their users, Neobanks are more targeted to satisfy specific needs and more flexible in making short-term contracts.
Are there Neobanks for Gamers?
Yes, of course! As we mentioned above, there are financial solutions adapted to a specific gap in the market. That is why, if you are passionate about video games, you can find Neobanks for gamers.
Most gamers are looking for a service that can offer rewards for their purchases. This service should serve to buy video games and gaming items, and to make their daily purchases in their offline life. Even streamers focused on video games are looking for this type of service.
Currently, there are different solutions to these needs. For example, Ugami is one of the most popular neobanks for gamers that offers a cool Debit Card For Gamers that gives excellent rewards for every purchase. Above all, one of its advantages is that you can get rewards for your daily purchases that can be exchanged for gaming products.
How to know whether I need Traditional Banks or Neobanks?
In summary, it depends on your lifestyle, needs, time, and flexibility to use new technologies. Neobanks are always one step ahead in terms of technology. Traditional Banks are organizations with an infrastructure established for many years that has changed very little over time.
Suppose you have little knowledge of online services and apps and are used to attending physical offices to receive customer service. In that case, we recommend continuing with the services of Traditional Banks since, in this case, a Neobank will not meet your needs.
However, if you do not have much time to attend any office physically, and you are looking for a bank that offers rewards for your daily purchases at a much lower fee, you are looking for a Neobank.
Nevertheless, the final decision depends on you. For the moment, we can only make these recommendations for you to make a better decision when choosing an ideal bank for your needs.
Which type of bank do you think is best for you?