The digital evolution: From brick-and-mortar banking to Neo Banks

The new age banking or the neo banks often ridicules the traditional banking as luddites or technology laggards. The neo banks are for the adventurous millennials. Customers are now attracted by the new offerings of these new age banks and their simplified processes.

Bank ‘X’ is one such new age start-up bank completely driven digitally. It plans to capture that segment of the market which is untapped. A marriage between e-commerce, banking, and logistics. A bank which will satiate the customers’ long standing demand for immediate refund of money when goods, bought through e-commerce ecosystem, are returned. The aim is to become the most reliable financial agent for both customers and businesses which trade through e-commerce web site. Bank ‘X’ proposes disruptive changes in the arena of payments and settlements. Bank ‘X’ provides ease of performing a transaction both offline and online. Bank ‘X’ is going to keep the interest of all the players in the ecosystem -- the customers, the e-commerce sector, and the logistics industry. It will also provide its customers a typical savings, current accounts – but will be very interactive type. The money spent will be analysed based on the customer’s request. The refund option will also pop in these artificial intelligence-driven Bank.

The major revenue stream for Bank ‘X’ will be from the e-commerce industry. E-commerce is getting benefitted from Bank ‘X’ because of instantaneous refund done by the latter. While e-commerce pays Bank ‘X’ after a specified period, the customers get instant refund and hence e-commerce pays the interest for this additional credit period given to them.

Bank ‘X’ was founded by a young entrepreneur in London who identified a need of bank which can fill up the existing vacuum in the entire e-commerce ecosystem and fulfil the need of all the three players in the e-commerce ecosystem. Initially a prototype was developed that could execute all the key value offerings perfectly blend to achieve a frictionless life cycle. I came across them coming up humbly with their idea. They were not aware of the strength of their product which could potentially take the entire financial industry by storm. I am playing the role of mentor to them guiding and navigating them through the corporate structures.

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