financial
institutions banks and neo banks
Nadia
understanding bank
A bank is a financial intermediation institution generally established with the authority to accept money deposits, lend money and issue promissory notes or what is known as a banknote. The word bank comes from the Italian banca which means money exchange.
Meanwhile, according to banking law, a bank is a business entity that collects
funds from the public in the form of savings and distributes them to the public in
the form of credit or other forms in order to improve the standard of living of many
people. The banking industry has undergone major changes in recent years
Banks are divided into 3 types 01
02 03
Central Bank
Commercial Banks
People's Credit Bank
Central Bank
The Central Bank is an institution responsible
for regulating and supervising the financial
system in a country. This means that the
Central Bank is also responsible for ensuring
that a country's finances remain stable.
Commercial Bank
Commercial banks are banks that carry out
business activities conventionally and/or based
on sharia principles, by providing banking
function services in payment traffic.
People's Credit Bank
Rural Credit Bank (BPR) is a bank financial
institution that accepts deposits only in the
form of time deposits, savings, and/or other
equivalent forms and distributes funds as a
BPR business.
Neo Bank
Neobank or what we can call a digital bank is a new term from the banking world that is related to bank digitalization.
All activities from opening an account, transfers and other
transaction activities are carried out online. This makes it
easier for customers to make transactions. By just relying on
an internet connection, you can carry out various activities in
one hand.!
difference between neo bank and bank
1. Operating Model: Neo banks operate exclusively digitally, without physical branches, while traditional banks have a network of physical branches in different locations. Traditional banks also often have widely distributed ATM machines.
2. Registration and Services: The registration process to open an account at Neo Bank is often easier, faster, and can be done completely online. On the other hand, traditional banks may require a visit to a branch office to open an account, and the process can take longer.
3. Fees and Fees: Neo banks tend to offer lower or even free fees for basic banking services such as account opening, fund transfers and cash withdrawals. Traditional banks may charge a fee for this service, especially if the user does not meet certain requirements.
4. Ease of Access: Neo bank offers 24/7 access via mobile app or website, allowing customers to manage their finances anytime and anywhere. Traditional banks have limited operating hours and sometimes require physical presence for certain services.
