‎4 types of digital banks .. Get to know them

At a time when digital banks are becoming more prevalent around the world, global monitoring revealed that there are several differences between digital banks, and there is not one type, but 4 types.. “money” that sheds light on the most prominent differences between them.

The first type, which is called New Banks, or new banks, and this type is self-contained and licensed banks that have all licenses to provide banking services, and therefore they are the same as traditional banks that have licenses, but they do not have headquarters and branches to be frequented by customers, as they provide their services Remotely, that is, completely digital, and stc pay in Saudi Arabia, which has a license from the Council of Ministers, is the most prominent example of this type of bank.

As for the second type of those banks, it is Neo Bank, which is a type of digital bank, but it does not have its own licenses, but it carries out its banking operations through partnership with already licensed banks and provides its services in a fully digital manner and without fees, and the customer has an account in A licensed bank…

The third type of digital banks, it is what is called Beta Banks, which are subsidiaries of licensed banks, and primarily target small and medium companies, as they provide them with new financial and digital services to customers, and their customer base is often larger than the parent bank. ..

Finally, the fourth type, which is NonBanks, which are digital banks that do not have any licenses and do not have participation with licensed banks and do not provide digital banking services, but provide digital financial services only, and their activities are often concentrated in providing simplified loans or mortgages.