Feature Post

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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Customer Due Diligence, KYC Policies and Some Important Relationships Between Banker and Customer

  • Some legal Relationships between Banker and Customer
Debtor-Creditor
Creditor-Debtor
Mortgagor-Mortgagee
Bailee-Bailor
Trustee-Beneficiary
Lessee-Lessor
Pricipal-Agent

  • Approach of KYC as per RBI guidelines is
    • To prevent bank from being used, intentionally or unintentionally, by criminal elements for their money laundering activities
    • To help banks to know their customer and their financial transactions better.
  • KYC Policies laid down by RBI
    • Customer Acceptance Policy (CAP)
    • Customer Identification Process
    • Monitoring of Customer Transactions
    • Risk Management
  • Customer Due Diligence – It can be defined as any measure undertaken by a financial institution to collect and verify information and positively establish the identity of customer. Board approved customer acceptance policy is the base of CDD. Three Types of CDD –
    • Basic Due Diligence
    • Simplified Due Diligence
    • Enhanced Due Diligence

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