Neobanks in Loans category in Singapore
Loans to individuals and businesses
Apart from traditional banking services, neobanks have disrupted legacy banks by offering innovative lending services. One such lending product is a loan to individuals or businesses. These loans are typically short-term loans and are offered at lower interest rates than traditional banks. The main distinction is that the application and approval process is exponentially faster and more efficient than with traditional brick-and-mortar banks. One such example is credit card borrowing, which typically come with in-app features, such as cashback rewards and travel benefits.
Mortgages and consumer loans
Neobanks also offer mortgages and consumer loans, which are typically offered at competitive rates than those of traditional banks. Big data and sophisticated analytics have helped these agile digital banks to use their economies of scale and low operational costs and drastically improve customer experience and reduce loan applications to a few hours or, in some cases, minutes or seconds. They also give complete transparency, give information on mortgage interest rates today and help calculate mortgage payments.
Buy Now Pay Later (BNPL) services offered by neobanks
Another popular lending service offered by neobanks is the Buy Now Pay Later (BNPL) scheme. This service allows customers to purchase goods and services without having to pay upfront and allows to spread the cost over several instalments.