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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 3 of 5

 7.   Strategy in New Product Development
 








8.   Rule of 72 – Amount or loan will be doubled if no extra transaction will be done in this period. This period can be obtained using below formula
72/rate of interest
So, amount 5000 at interest rate 4% will become 10,000 in
72/4=18 years if no deposit/ withdraw will be done.
And loan amount 5000 at interest rate 10% will become 10,000 in
72/10 = 7.2 Years if no payment will be made.


9.   Time Value of Money – Process of converting future sums into their present equivalents is known as discounting. Compounding is used to determine the future value of present cash flow.
Frequently compounding of interest
Annually = P (1+r)  - Annual Compounding
Quarterly = P (1+r/4)4 – Quarterly Compounding

Monthly = P (1+r/12)12 – Monthly Compounding


Part 1         Part 2       Part 4     Part 5

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