Is a Neobank the Right Option for Your Corporate Bank Account?

A Neobank is a new type of bank that doesn’t have branches, ATMs, or physical locations. They are primarily online-based and many Neobanks offer mobile banking apps as well. So should you open your corporate bank account with one? That all depends on what your needs are for your business. Here are some things to consider before making the decision:

What kind of services do they offer?  What is their reputation? Do they charge any fees? How long has the Neobank been around for and how does it compare to other banks in terms of customer service support? If you want more information about Neobanks and why they might be right for your company, read on…

1. What is a Neobank and how does it differ from other banks?

A Neobank is a new type of bank that doesn’t have branches, ATMs, or physical locations. They are primarily online-based and many Neobanks offer mobile banking apps as well. Neobanks first started appearing in Europe a few years ago and they’re now becoming popular in the U.S.

One of the main benefits of neobanks is that they tend to have lower fees than traditional banks. They also offer a lot of innovative features like budgeting tools, goal-setting features, and even cryptocurrency wallets. This can be appealing for individuals and businesses who are looking for an affordable, convenient, and modern banking option.

2. Are Neobanks legal in Singapore?

Neobanks are still a relatively new concept in Singapore.

As of today, there are 6 Neobanks that have gotten licenses from the Monetary Authority of Singapore (MAS) to operate in Singapore.

These 6 Neobanks are namely

  1. Aspire
  2. CurrencyFair
  3. Neat
  4. Revolut
  5. Wise (Transferwise)
  6. YouTrip

In a study done by Visa in 2020, close to 65% of Singaporeans are open to the idea of adopting a digital-only bank. Some of the top reasons for this would be the convenience and speed in banking offered by these Neobanks.

3. Things to consider before opening an account with Neobank Corporate Bank Account

There are a few things you’ll want to consider before opening an account with a Neobank:

– How comfortable are you doing all your banking online?

– Do you need access to physical branches or ATMs? If so, which banks have the closest locations to you?

– What are the fees for Neobank accounts? Can you get the same features offered by Neobanks for a lower or similar price with another bank?

– How will this Neobank account help your business grow and run more smoothly on a day to day basis? Will it save time and money in any way? These are just some of the questions that should be answered before making a decision on whether or not to open a corporate bank account with a Neobank.

There are definitely some advantages to banking with a Neobank, but it’s important to weigh the pros and cons carefully before deciding if this is the right option for you. For more information on Neobanks and their benefits, read on. 

4. Are Neobanks Safe?

Neobanks are generally considered to be safe since they’re regulated by the MAS.

In addition, all Neobank accounts have deposit insurance from either the Singapore Deposit Insurance Corporation or Allianz Singapore. This means that even if your Neobank goes out of business for some reason, you still get a refund on any deposits you had in your Neobank account.

The biggest downside of Neobanks is that if their mobile app or website gets hacked, there’s a chance your money could get stolen since they don’t have physical locations to access. For this reason, it might be best to keep some extra cash on hand at all times in case of an emergency.

Overall, Neobanks are a safe and convenient banking option that can save you money in fees. They’re growing in popularity every day, so it’s worth considering if this is the right banking solution for your business.

5. Consider Aspire If You Wish To Open A Neobank Corporate Bank Account Today

Amongst our clients who opened a corporate bank account with a Neobank, most will consider Aspire. It is an all-in-one finance operating system for businesses.

Fast and Easy – You can open a bank account in 5 minutes. Get an account number and virtual card instantly upon approval.

No Hidden Fees – You get to enjoy the lowest transfer fees in the market with transparent pricing and no monthly fees.

Get Funding Fast – There are options available if you need to secure working capital for your business. You can complete your application 100% online with minimal hardcopy paperwork. Approval within 7 business days and low interest starting from 1%.

Integration With Major Software – You can automate your business workflows with direct integrations to top software available in the marketplace, be it your accounting software or e-commerce platforms.

Get started in 5 minutes and open your account here for free today!

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