If you're looking for a new way to bank, you might have heard the term “neobank” and wondered what it means. A neobank is a mobile-based, digital-only bank that offers modern features while usually keeping costs low. You can use neobanks to manage your finances in an easy, modern way—and they can even help save you money in the process! Let's break down exactly what makes these services stand out from traditional banking institutions:
What is a neobank?
Neobanks, like bunq and Knab, are a new kind of bank. They offer a range of banking services, but their defining feature is that they're online and mobile only. Their focus on the customer experience means that they aren't traditional banks—they're better!
What do neobanks offer?
Neobanks offer a wide range of financial products, including savings accounts and checking accounts. They also offer personal finance management tools that allow you to track your spending and save money.
Are they safe?
Safety is a question that neobanks are often asked. After all, they don't have the same history as traditional banks and aren't as well known. However, they do offer the same protections and regulatory standards that you'd expect from your regular bank—they're just new and different. You should be able to feel safe using any of these banks because they're regulated by the same authorities and insured by the same insurance companies.
What are the differences?
Neobanks are a relatively new type of bank that's taking the world by storm. They are positioned as "disrupters" to the traditional banking industry, offering innovative products and services in an attempt to capture market share from incumbent banks.
Neobanks offer the same types of products as traditional banks (like savings accounts, credit cards, and sometimes mortgages) but in a more modern way. They're not yet subject to the same regulatory requirements as traditional banks because they don't have physical branches or ATMs—they exist primarily online.
Neobanks are a new way to bank. They are a good option if you want to manage your finances in an easy, modern way.
A neobank is a new way to bank. It's a good option if you want to manage your finances in an easy, modern way. Neobanks offer features like mobile apps and user-friendly interfaces that make it easy for anyone to get started managing their money.
How to give your neobank account superpowers?
As you know, at Flow is all about money automation the smart way: easy budgeting, saving and investing according to your rules. We dream of a stress-free financial future for all, and we’ve created the app to guide people there.
We strongly believe money automation & having several bank accounts as budgets work best to organize your finances in a way that is both beneficial and great for insights.
Neobanks offer several (sub) bank accounts included in one account, plus unlimited saving accounts. With our smart Rules Engine on top of that, personal finances will be easier than ever. Financial insights and overview will become second nature. And money automation will make sure your finances stay organized.
For example: when your salary comes in, transfer:
- €1000 to fixed costs
- €500 to groceries
- €150 to holiday
- €150 to pocket money
- Fill savings up to €20000
From what’s left:
- Send 50% to college fund
- Send 50% to investments
Do you like neobanks, but changing banks feels like a hassle?
Getting a different bank can feel like a lot of work. It takes time and energy, and maybe you want to try it first, before you go all in and change banks. Here’s a great option for you:
- Open an account at a Neobank (for example: Knab, bunq).
- Determine the amount you need for fixed costs (housing, insurances, subscriptions)
- Leave that amount on your current main account (for example, Rabobank).
- Set up the Salary Hopper Flow to organize this automatically. Flow the rest of your money to your Neobank accounts and organize your budgets accordingly with Flow with your rules.
- Review the system you created each month, and see if you can make it even better.
- At this point, you can optimize this money system, or you could change banks when you’re ready.
The great thing about the day and age we live in: you can choose whatever works for you. You don’t have to change banks, but you can. You can enjoy modern banking without changing everything at once. Furthermore, you can test, try, improve and learn. You’ll get better each time, and build a great financial system that suits your needs and gives you a stress-free perspective for the future.
Happy automating!
