No, Neo financial is not a traditional bank. It is a Fin-tech company that aims at improving and revolutionizing the way in which financial services are offered.
What is Neo Financial?
Neo Financial is a fintech company that was launched in the year 2019 in Canada. It was created with the aim of innovating financial services and wishes to embrace all Canadians. The company concentrates on services to enhance spending, saving, investing, borrowing, security and credit score monitoring. Neo offers various rewards and cashbacks for using its products.
Fintech company vs traditional banks
A traditional bank is a licensed organisation that is regulated by the Bank of Canada. They take care of offering financial services and mainly focus on the security of funds of the clients. Whereas, a fintech company focuses on automating and improving financial services. It is also not regulated by the central bank.
Traditional banks are generally stricter than Fintech companies. It is easier to open an account or borrow money from a Fintech company than in a traditional bank.
Traditional banks generally have branches across Canada, whereas Fintech companies do not have any physical branches. If you are an old-fashioned person, who wishes to physically meet and talk to a representative of the bank, he or she should prefer the traditional banks. With a fintech company, you can only make phone calls, send e-mail or chat with the representative.
You must be tech savvy, and have a device connected to the internet to effectively use Neo Financial. Whereas, with traditional banking, it can be managed with pen and paper.
Is Neo Financial a bank?
The main slogan of Neo Financial is “What if the future of banking wasn’t a bank?”. As illustrated above, Neo is not a bank, rather a fintech company. Neo aims for “No branches, no lines, no limits, just innovation.