Reasons why every entrepreneur should know the advantages of neobanks

Reasons why every entrepreneur should know the advantages of neobanks

Due to the situation we are experiencing at a global level, digital entrepreneurships and also by freelancers have risen considerably, this due to the needs of many people who seek to have an income through these growing media.

However, one of the most important aspects when starting a project of this kind is to know what type of bank account they should have, whether to open a freelance or company account through conventional banks, or do it through the already very popular neobanks.

In the first instance, we can say that, unlike conventional financial institutions, neobanks have come to significantly change the experience of companies in this economic sector, but what are their advantages? In this article we will tell you.

What are neobanks?

But before describing what are the advantages of this type of financial institution, it is important that you understand what neobanks consist of or what they are.

Basically, neobanks are banking entities that use fintech technology, in such a way that they may or may not be banks as such (credit institutions) and function as intermediaries between banks and customers.

However, what has made them so popular despite their peculiar characteristics is that they offer a much better and more complete experience than traditional banks, providing closeness to customers through mobile devices or other channels. In which it is not required to make endless lines to carry out certain movements, in addition to the fact that most of these virtual spaces are very transparent and have very low commissions.

What are the advantages that neobanks offer?

Now, if you are interested in knowing what are the advantages offered by neobanks, some of the most important are the following:

• If you want to make basic movements, such as national transfers, you do not have to pay any commission.
• Debit or credit cards can be free for the business account holder and for a specific number of collaborators or employees, each card containing information on payments, transfers or other movements in a personalized way.
• Features that simplify accounting and financial management are often included
• You can get multiple discounts on services and insurance.
• If you want to make payments in foreign currency, your commissions can be very low.

Differences between opening a conventional bank account and one in a neobank

If you have a company, there are many requirements to open a bank account in a traditional bank and be able to use its online banking application regularly. For example:

• Social security payment
• Payment of taxes
• Payroll
• Maintain a medium balance
• Make monthly or quarterly income
• Make movements with the card
• Domicile the main receipts
• Collections through the POS

On the other hand, neobanks are much more flexible, in such a way that to open your account you only need to have a good internet connection, your identity document and the general information of your company, and in a matter of minutes your account will be created.

Without a doubt, technology is not surprising every day, making this type of task much easier. Therefore, do not hesitate to take advantage of all the facilities offered by neobanks.