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NEO Banking - A Future Digital Banking, Development Scope, Threat and Challenges

What is Neo Banking? NEO banks are the banks which has no physical branches. NEO Banks are digital only financial institutions that operate exclusively online through websites and mobile apps.  The financial services industry has undergone massive transformations from manual to Core Banking and now digital without any physical branch. the evolution of banking has been marked by innovations aimed at making financial services more accessible, convenient, and efficient.   NEO Banks offers services like below: Account Management: Account Opening, Checking, Savings, and Money Transfers Loan Services: Quick and seamless loan approvals Low Fees: Minimal or no fees due to lower operational costs Tech Features: Budget tools, instant payments, and real-time alerts Why Are Neo Banks becoming popular now? Convenience : 24/7 mobile banking—no waiting in lines. Lower Fees : No hidden charges, free international transfers, and zero maintenance fees. User-Friendly Apps : Seamless, f...
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Quick Refernce Guide for CAIIB-Retail Banking Part 1 of 5

1. Business Process Structure in Retail Banking
a.   Horizontally Organized Model – Different process model for different products offering end to end solution product wise.

b.   Vertically Organized Model – Provides functionality across products with customer database orientation and centralized customer data.

c.   Predominantly Horizontally Organized Model – Mostly Product oriented with common customer information for same product.

d.   Predominantly Vertically Organized Model – Common Information is available for most of the products

2.   Segmentation of Customer based on their income levels
Income Levels(Rs. Lakhs)
Customer Segment
2-10
Mass Market
10-50
Mass Affluent
50-400
Super Affluent
400-4000
HNW (High Net Worth)
4000-120000
Super HNW
>120000
Ultra HNW

3.   Maslow’s Theory and Customer needs – Maslow has defined five needs of individuals in their various stages of life. The need start from the basic requirement and move up during the life stage progression.

Sl No
Needs as per Maslow
Banking Product that can be offered to Customer
1
Physiological Needs
Core Banking A/c, Personal Accident cover, Housing Loan.
2
Security /Safety Needs
Reccuring Deposit, Fixed Deposit, Tax Planning Products like Insurance and Mutual Fund, Life insurance Endowment Plan with low premium, long tenor and high maturity amount.
3
Social Needs
Consumer/Personal/Home/Car Loans, ULIP, SIP, Mutual Fund, Retail Gold Coins, Health policies for self and family, loans for professional, Insurance cover to above loans.
4
Esteem Needs
Term Insurance, Spl. Term Deposit, 2nd Housing Loan, Home Improvement and Home décor loan.
5
Self Actualization Needs
Pensioners Loan, Retirement Solution in banking and pension plan in Insurance, Sr. Citizen Term Deposit.


 Part 2       Part 3       Part 4     Part 5

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