It will not be an overstatement to say that employees are the most valuable asset of an organisation. Hiring and retaining employees is no longer about salary payouts. From performance incentives and festival bonuses to investment options and loans, managing employee expenditure forms a separate area of strategising for organisations. This makes cash management particularly crucial for new businesses.
Millions of small and medium-sized businesses in India deal with the hassles of multiple employee payouts and statutory compliances. However, the asset-light neo banks offer the benefits of flexibility, digitalisation, and financial inclusion.
They adopt a mobile-first approach and offer services over a digital platform. A customer-centric approach makes the financial world much more accessible to employees. With a unified platform to automate bookkeeping and tracking employee spends, neo-banks are streamlining cash management.
Being a completely online service provider, creating an account is as easy as logging in and completing the KYC procedure. Once the PAN is verified, services are offered based on identifying the category of customer.
At present, organisations are innovating their employee engagement strategies. While not everyone may feel appreciated the same way, neo banks offer the right mix of flexibility and inclusion for them. From managing salary accounts and investments to expense tracking tools, neo banks with or without the support of traditional banks offer an integrated platform with an easy interface to employees.
Neo-Banking at a Glance
FinTech startups, including neo banks, are the latest evolution in the banking sector. They are financial services providers and offer digital-only services, such as opening an account, money transfer, and loans. Although traditional banks are burdened by legacy infrastructure, they have a broad customer base. By providing a digital platform, neo-banks drive financial inclusion while traditional banks gain the added advantage of customer retention.
Customers are moving away from physical banks and choosing online banking and wallets. Neo-banking is providing a three-way handshake to the banks, fintech firms and customers.
You can now manage your payments conveniently and with secure banking experience.
Let’s take a look at some Neo-Banking tools:
Saving and Investment Tool – From buying digital gold to starting fixed deposits and capping expense limits on their accounts, neo banks provide a comprehensive solution to employees.
Payments and Collections – Manage transactions through an integrated portal that supports multiple payment methods.
Zero Maintenance Account – Open an account with a virtual card that earns cashback as well
Value-added Services – Simplifies daily activities like ticket reservations, bill payments and insurance for employees through a business banking account for startups and SMEs.
Employee Benefits Platform – From tracking reimbursements to paying out incentives, the integrated neo-banking platform streamlines expense tracking and disbursements.
Integrated digital platforms offered by neo-banks help organisations streamline employee spending, which enhances employee engagement.
Since neo-banks work in a fluid environment, the functionality is dynamic. Although it involves low costs and easier loan approval, it is necessary to verify the availability of deposit insurance.
As online banking is becoming increasingly comfortable, neo-banks are still evolving and are expected to offer more financial services.
Use InstantPay now and have your bank on your mobile phone.