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Here’s how Neobanks are Changing the CX game in Banking

4 minutes read

“To change behavior, products must ensure the user feels in control. People must want to use the service, not feel they have to.”― Nir Eyal

Our life revolves around Swiggy, Uber, Dunzo, Urban Clap, and hundreds of applications that give us instant service, usage insights (for example, Swiggy shows the amount of money saved per month through the application usage), rewards, and personalized notifications. Customers are now addicted to this kind of habit and want similar experiences everywhere. What if they can have a banking experience in the same way they order food over Zomato or book an Ola cab via a mobile app. Neobanks are the Swiggy, Zomato of the banking world. Neo is a Greek word that means new. Neobanks are the modern version of traditional banks. Let’s look at how neobanks are changing the CX game in banking industry.

NEO Banks and the Gen Z

Gen Z’s (Generation Z) are the newest addition to the banking world. This generation has a deeply embedded expectation that everything they search for or buy online will be tailored and delivered right away. 

Additionally, Gen Z is a value-driven generation that seeks more value for their money. Their expectations are hyper-personalized experience, prompt deliveries, and on-demand services, higher user engagement, and value for money. And neo banks have been the first movers in decoding these expectations. They are positioning their brand as an online platform for millennials and Gen Z, offering financial services at a touch of a button. Their USP is convenient and simple user experience

For example, Jupiter money- a 100% digital banking company designed to target Gen Z and Millennials- helps users open an account within 3 minutes. “Jupiter has 3 main areas of focus at the moment — increasing user engagement on the platform, investment options, and introducing consumer lending services, which will help them monetize the platform”, says the company’s founder and chief executive officer (CEO) Jitendra Gupta. 

Neobanks are making it easy for users to keep a track of their expenses, and save and plan their investments wisely. But what else is different about them? Why are Gen Z and millennials hooked on this modern banking platform? Well, it’s all about the first impression. Neobanks have built the mobile app keeping the new Generation’s daily routines, actions, and habits in mind. They studied user behavior patterns to determine what compels and ticks these newer customer segments. Here’s how neobanks are changing the CX game in banking to win customers: 

  1. Real-time financial insights at the tip of a button: Customers can track their spending, saving status, and every financial activity on the app. 
  2. Interactive & Conversational App Design: Neobank apps do not have any physical branch yet they are appealing because of their amazing UI and application design. The look and feel of the application is more youthful and vibrant with a minimalistic design. Their focus is on user experience design and functionality, both.
Here's How Neobanks are Changing the CX Game in Banking
Here's How Neobanks are Changing the CX Game in Banking

Source: Jupiter

  1. Rewards & Benefits: Neobanks offer attractive offers and rewards to bring back users repeatedly on the app and retain them. For instance, customers get a 1% reward on all UPI and debit card purchases using Jupiter Money. They can also track their reward earnings in real-time. 

Where are the Traditional Banks heading towards?

Conventional banks focus more on the functionality of the application. Earlier, customers had to visit the branch physically to avail of banking services. Now they focus on bringing the banking service to the user’s ecosystem. Data and AI-driven personalization have been helping banking institutions to create seamless customer journeys for the users. They are leveraging technologies like metaverse, Virtual Reality (VR), and Augmented Reality (AR), to create offerings in the virtual world. Their USP (Unique Selling Proposition) is Customer Engagement. Gen Z is spending most of the time in this virtual space. Banks are leaving no stones unturned to mark their presence in the customer’s ecosystem. How? By creating an immersive experience for these users in the virtual space. IndusInd Bank launched a video branch, which allows customers to communicate with their bank executive in real-time. 

JP Morgan opened a lounge- Onyx in Decentraland. Bank of America launched VR training in over 4,300 financial centers. Lynx is working on introducing 1) A cryptocurrency-based game that allows players to create, earn and sell digital items with financial value and 2) An“enhanced remittance experience”:  A digital meeting space that allows those sending money to loved ones to visit and communicate with them in a “streamlined, entertaining, economical, and secure” manner.

The Road Ahead:

The Reserve Bank of India hasn’t allowed banks to become fully digital. This is one of the major challenges for Neobanks. Having a completely digital presence, they do not have a license. But they do have the technical expertise and Gen Z’s attention.

Neobanks with their technological expertise & Conventional banks with years of experience can together bridge the existing customer experience gap in the banking industry. Niyo, Jupiter, Razorpay have partnered with the traditional banks to deliver a seamless digital banking experience for their customers. According to the Redseer Strategy Consulting report, partnership profits both, giving neobanks a strong position and traditional banks access to young, tech-savvy customers. Recently, Visa and AI-driven neo bank OneBanc Technologies teamed up to launch the first magnetic-strip-free debit and credit cards in India. More than 300,000 new accounts with neo-banking partners have been launched by Federal Bank. 

In the end, it’s all about creating the best customer experience. And working in silos might turn out to be a disaster for both parties. Healthy cooperation may definitely help win customers. 

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What If the Sun Took a Day Off?

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Ever wondered what life would be like if the Sun took a day off? Picture waking up to an Earth shrouded in darkness, where temperatures drop dramatically within hours, plunging the planet into an icy chill. Plants, deprived of sunlight, would halt photosynthesis, leading to a food production crisis. Our reliance on renewable energy would face a sudden halt, causing widespread blackouts and chaos in cities across the globe.

A day without the Sun would throw our world into chaos! Luckily, that’s never going to happen (at least in our lifetime!). But this thought experiment underscores the Sun’s critical role in our lives and highlights why harnessing solar energy is so vital. While we’re increasingly turning to solar power, we are still missing out on capturing a massive amount of solar energy that falls on Earth every single day.

How Much Solar Energy Are We Missing Out On?

Every day, the Earth receives about 173,000 terawatts of solar energy from the Sun—more than 10,000 times the world’s total daily energy consumption. Despite this abundance, we only capture a tiny fraction of this energy. In 2023, solar energy accounted for just 4.5% of global electricity generation—a huge opportunity waiting to be tapped.

If we could capture just a small percentage of the Sun’s energy, we could power the entire world many times over. The total solar energy that hits the Earth in just one hour could meet the world’s energy needs for a full year. Yet, due to limitations in solar panel deployment, technology efficiency, and energy storage, the vast majority of solar energy goes unused each day.

As we improve solar technology and infrastructure, capturing more of this energy becomes not just a possibility but a necessity for a sustainable future. Let’s dive into how cutting-edge technology is making solar energy more accessible and efficient, helping to turn this untapped potential into real, usable power.

How Tech Makes Solar Adoption Easier

Customer-centric technology is revolutionizing the way we adopt solar energy. Imagine an app that allows you to simply point your smartphone at your house to estimate how many solar panels you need, their ideal placement, and the energy they can generate.

Here are the key benefits of this innovative approach:

  • Precision: By capturing images of your property through satellite, the app calculates the optimal placement of solar panels for maximum energy production. Studies have shown that precise placement can increase efficiency by up to 20%.
  • Customer Engagement: Users receive real-time insights into their energy production, helping them understand their solar power system better, whether they’re using Tesla solar panels, solar power generators, or even solar attic fans to optimize home energy usage
  • Seamless Experience: With user-friendly interfaces, consumers can easily monitor their solar systems remotely and receive updates on their energy output. This accessibility is crucial for encouraging the wider adoption of solar technologies.

The Tech-Driven Shift Toward Sustainability

As solar technology evolves, so do the solar panels themselves. Innovations like Tesla solar roof systems, flexible solar plates, and bifacial panels are redefining what’s possible in renewable energy. Even smaller systems—such as portable solar generators and solar air conditioners—empower homeowners to harness solar power efficiently.

Photovoltaic (PV)  panels, the cornerstone of solar energy, have seen incredible advancements, now boasting efficiencies of up to 22%. This means fewer panels are needed to produce more energy, making solar energy more effective for a wide range of applications, from solar shingles to off-grid systems.

Moreover, the push towards cradle-to-cradle sustainability is reshaping the industry. New solar panels are being designed with recyclability in mind, reducing their environmental footprint. Innovations in recycling technology now recover up to 95% of materials from end-of-life panels, ensuring that even the oldest solar systems contribute to a greener future.

While solar technology continues to advance, solar panels themselves are becoming more efficient and environmentally sustainable. Innovations such as systems, flexible solar plates, and bifacial solar panels are pushing the boundaries of what’s possible in renewable energy. Even smaller systems like portable solar generators and solar air conditioners are empowering homeowners to tap into the power of the Sun efficiently and sustainably.  Photovoltaic (PV) panels, the cornerstone of solar energy – now boast efficiencies of up to 22%​. This means a smaller array of solar panels for home or commercial use can generate more electricity. This makes solar energy systems more appealing and effective for various applications, from solar roof shingles to off-grid solar systems.

Moreover, the move toward cradle-to-cradle sustainability—where solar panels are built from materials that can be easily recycled—has gained traction. This reduces the environmental footprint even further. Innovations in recycling can recover up to 95% of materials from end-of-life panels, According to PV Cycle​, with room for improvement in recycling.

Making Solar Affordable and Accessible

Historically, one of the biggest barriers to solar adoption has been the cost. But things are changing fast. Innovations in financing models, such as Power Purchase Agreements (PPAs) and solar loans, have significantly reduced the financial burden of installing solar systems. According to the Solar Energy Industries Association (SEIA), the average cost of solar installation has dropped by over 70% in the last decade.

Couple that with federal and state incentives like the Investment Tax Credit (ITC), which provides a 30% tax credit on solar installations, and solar energy is more affordable than ever. Net metering programs, which allow homeowners to sell excess energy back to the grid, further enhance savings, making solar not only accessible but also financially rewarding.

Conclusion

The future of solar energy goes far beyond rooftop panels—it’s about making the entire solar experience intuitive, accessible, and sustainable. With smart apps and tech-driven tools, consumers can now manage their solar energy systems with just a few taps on their phones, making the shift to green energy simpler and more engaging.

At Mantra Labs, we’re at the forefront of this solar revolution. We’ve helped some of the world’s largest solar providers develop cutting-edge, customer-friendly solutions. Our mobile apps allow users to estimate solar panel needs, monitor system performance, and even track their environmental impact—all from the convenience of their smartphone.

Together, with innovative tech and a commitment to sustainability, we’re building a future where solar energy isn’t just an option—it’s the smarter, more accessible, and greener solution for everyone.

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