What are neobanks? Know everything about neobanks of Nepal

A neobank (also known as an online bank, internet-only bank, virtual bank or digital bank) is a type of direct bank that operates exclusively online without traditional physical branch networks ; Wikipedia says. Neobanks are new-age banks without any physical location, present entirely online. They provide digital, mobile-first financial solutions for payments, money transfers, lending, receive money and more.

HighLight of the Story : nBank is the first Nepali neobank of Nepal launched as a fully digital branch of Nabil Bank Limited. Customers can now perform a whole range of activities – from opening their bank accounts faster to applying for loans, nRemit to international number registration– directly from the nBank app.

In the U.S. and across the globe, neobanks are quickly gaining traction, especially among Gen Zers and millennials. Also these banks are not typically regulated in the same way traditional “megabanks” are. They often partner with an already regulated entity so that their deposits will be insured by the FDIC.

Neobanks generally aim at providing more value and a better experience than traditional banks. These types of banks customers mostly benefit from fee-free accounts and financial management services such as budgeting, spend tracking, and automated savings.

These Features of neobanks describe better :

• Aren't chartered with National Bank Regulators like traditional physical banks.
• ​ Lack physical branches / No branches at all.
• ​ May offer fewer products or services.
• ​ Must be partnered with a bank to insure customer deposits.
• ​ Have a digital-first interface and Low processing fees.

History of neobanks in Nepal

1. nbank : First nepali neobank
2. Wise (TransferWise) : U.K based, Nepali can access
3. TransferGo : U.K based, access to Nepal
4. World Remit : U.K based, access to Nepal

Lets dive into the neobanks currently running in Nepal.

• ​nBank : Nabil Bank's neobank

Nabil Bank Limited has launched nBank – Nepal’s first Neo Bank stepping ahead from being a computerized bank to a digital bank.  In a virtual launching program, Chairman Upendra Prasad Poudyal, Vice Chairman Nirvana Chaudhary, Chief Executive Officer Gyanendra Prasad Dhungana, and Deputy Chief Executive Officer nBank & Operations Binaya Kumar Regmi jointly launched nBank, the country’s first ever Neo Bank by completely revamping the mobile banking app. Customers who were previously using the Nabil Smart Bank app receives an update where the logo transforms from the Nabil’s ‘A’ to nBank’s ‘n’.

“Nabil Bank believes that nBank signifies Nabil Bank’s commitment to lead the way on the digital front. Nabil Bank has established nBank as a virtual branch within the Bank to create simple and intuitive customer journeys across all digital touchpoints.Chairman Poudyal said that nBank will transform the banking behavior of people and will contribute significantly to sustainable banking,” on a press release.

Get Your nBank app : Google Play Store & ​iStore

• Wise (TransferWise)

Wise (transferwise) is a neobank based in the United Kingdom offering Personal accounts, Business accounts including a debit card, with all transactions being managed from an iPhone or Android application. Do you often need to transfer money internationally? Do you regularly receive money from a relative or client abroad? Then you know that this type of transaction can quickly cost you a lot of money, especially when going through a classic bank. The solution is to use an international money transfer platform.

What do you think of neobanks and its future, do share with us. Also we won't describe other two neobanks as they provide similar services worldwide.