A Neo-bank is a new type of app-only bank with no branches. In Greek, the root “neo” means “young” and “new” and, as in the realities of the 21st century, to update almost always means to digitise and to evolve to the internet. So neo-banks are conventional banks, but with no physical branches, using only mobile applications and websites to provide their services.
While some companies don’t welcome the evolutionary change and still feel more comfortable with a crisp paper cheque in hand and dealing with people in branches, more and more businesses – especially those hiring tech-savvy millennials – are demanding more efficient, accessible, effective and secure accounts payable (AP) automation from their banks.
Corporate customers are becoming more educated on the advantages of AP automation and are exploring higher-level solutions that can offer lightning speed functionality and accessibility. The technology is already here and it is advancing quickly.
The demand for technology
Many high street banks are starting to invest in technology, recognising that the demand from corporate customers is real and that they would like modern services adopted and delivered as part of a standardised service. There is also the potential to gain a competitive advantage over rival banks.
