Growth of Neobanks and how traditional banks can compete with digitalization and 12iD services

In the rapidly evolving financial landscape, neobanks, or digital banks, have surged in popularity by offering consumers seamless and innovative banking experiences. A study of Google Play Store downloads in Europe, carried out by App Radar, has shown that out of the analysed apps, neobanks have made the biggest gains in 2022. Traditional banks, facing the challenge of competing in this digital era, must adopt strategic measures to stay relevant.

Here's a comprehensive guide on how traditional banks can thrive amid the rise of neobanks, leveraging digitalization and 12iD services.

Embracing Digital Transformation

Traditional banks can level the playing field by investing significantly in digital transformation. Enhancing digital platforms, developing user-friendly mobile apps, and providing real-time customer support. The integration with other financial service providers ensures a holistic and efficient banking experience.

Prioritizing Customer Experience

A superior customer experience is a key differentiator for traditional banks. Responsiveness to customer needs, offering personalized services, and resolving issues promptly contribute to building trust and loyalty.

Partnerships with Fintech companies

Collaborating with fintech companies is a strategic move for traditional banks. By leveraging the expertise of fintech partners, traditional banks can introduce new and innovative services to meet evolving customer expectations.

Digital Onboarding and 12iD Solutions

To compete effectively with neobanks, traditional banks must prioritize user experience and digital onboarding. This is where 12iD steps in to address these challenges:

• AI-Powered eKYC Platform: Streamlining onboarding processes, 12iD's eKYC platform automates procedures and reduces the number of steps required.

• Secure Remote Identity Verification: Empowering customers to open accounts remotely, 12iD's solution eliminates the need for branch visits, ensuring a secure and seamless process.

• Effortless Mobile Transactions: 12iD's remote verification solution enables customers to log in, make transactions, and sign documents securely on their smartphones.

By incorporating 12iD solutions, traditional banks can not only meet but exceed the digital onboarding standards set by neobanks. This strategic investment fosters a seamless and user-friendly experience, attracting and retaining customers while maintaining competitiveness in the dynamic digital banking landscape. The adoption of 12iD solutions transforms the digital onboarding process, making it more efficient, cost-effective, and customer-centric for traditional banks.

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