Risk Related To Neobanks

In terms of risk, I guess look there are a number of issues firstly Neo banks will definitely I mean the apps will definitely be used to some degree because of the service that they provide until traditional Banks don't catch up and they will catch up but these traditional banks are huge they're powerhouses they can you know to afford to buy out these Banks and you know to incorporate them into their services Nothing Stops them like that and they have the funds available they have the power so until that doesn't happen until these big Banks don't start incorporating some of these Services.

You'll see the use generally adopting or using what I feel will be the case is as a as a secondary or tertiary bank account you'll start seeing these Neo banks will be you know the primary I don't think they'll ever become for many the primary form of banking I think everybody will still have to a large degree the traditional bank accounts but what will start happening is you'll start using this Neo bank account for stuff like International remittances right because they're faster easier and generally cheaper you'll start using it for your currency exchange you'll start using it for charity many Islamic Neo banks are now offering the ability to give zakat inside the car via your phone the app itself right so you'll saw people using you start seeing people using these new bank apps to give charity to give sadaka smart reporting is another another area whereby you can see and manage your wealth some digital Banks they allow you to have a you know a complete view of all your bank accounts so for example Castro which I'm aware of in the UK they're offering this kind of ability to have an overview of all your bank accounts.

What's going on right so that's like one one stop for all your accounts and so then you can see the trends in your account you can see you know the movement of your finances and your funds the income outgoings so it's all in one place so I guess it'd be more for these kinds of services we'll see adoption of Neo banking platforms in terms of it being a primary bank I guess it will be like stalling bank right many people are using Sterling Bank and I guess that's because it has its license and it's really friendly to use so there will be a shift but it'll be a shift when those Banks and for Islamic banking anyway people will really start adopting Islamic Neo Banks when Islamic neurons have a full-fledged license to offer to offer complete banking services that's when I think the the jump will come but until then I think there's still a you know room for improvement for the digital Banks or the new Banks and I'll still see people especially the elderly generation they'll still be holding on to the traditional Banks.

Disclaimer  The following article is prepared by TAIF with the help of the video available on its YouTube Channel of TAIF. The editing of this article is done by a human after carefully reading and listening to the recorded program, in case of any mistakes and errors we apologize in advance, please write to us at contact@taiflearning.com