The health bank theory
Medical expenses send millions of people into extreme poverty

The world is seeing a once-in-a-lifetime pandemic that is causing untold human pain and mortality, tearing apart social bonds, and stripping people of their livelihoods and countries of their wealth. The Covid crisis has put a burden on healthcare services, exposed unjust inequality, and thrown communities into disarray.

An industry that was particularly impacted was healthcare. With millions of lives being lost and hospitals being overburdened, the public health landscape is devastated. Even though ‘insurance’ was a familiar word, just a handful of us took the trouble to keep some bucks aside for a rainy day. Those who did avail for insurance were tangled with medical bills and policies and most of the people were left destitute.

Looking at investment patterns we could see to an extent that it was the lack of financial planning that also fields this health crisis. To effectively cater to the changing needs of the masses, our country has impelled entrepreneurs all over, to bring about an impact with the rise of healthcare-focused fintech industries, neo banks, and so forth.

It’s been more than a year since the pandemic had begun; countries and families have been flushing enormous money on healthcare exigencies. With the central focus shifting to healthcare needs, a wave of smart entrepreneurs, innovative startups, and even neo banks have come to the rescue. The smart neo banks such as Fi, Open, InstantPay, Niyo, and others doing great jobs to improve customer experience and add true value in several areas, OCareNeo has gone a step ahead by tackling the larger financial problem associated with the health sector which is the need of the hour.

While fintech companies do offer digital and mobile-first financial platforms such as payments, money transfers, money lending, etc. The neobanks have taken the market by storm transforming the way we save, spend, and interact with traditional banks. Neobanking is completely online, rather than being physically available at a single venue thus holding larger potential to serve a larger mass. And when these neobanks take on this unified approach they seem to address the dynamic needs of the market - the healthcare crisis and the current financial gaps, we call them the health banks.

Why do we need a digital health bank?

To understand the need for a digital health bank, let us first understand what is financial health.

Financial Health (or “financial well-being”) is defined by the CFPB to be a “state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow them to enjoy life”. To further elaborate, being physically healthy means your body or mind does not constrain you from truly enjoying your life, and being financially healthy means that your wallet does not constrain you either.

During the pandemic, both these privileges were snatched away from our hands in no time. In this day and age, financial stability is anyways difficult due to student loans, low ROI, reduced incomes, and lower levels of homeownership. So when a medical crisis comes along, there is no way we can be anywhere close to prepared. These financial barriers hinder our physical and financial well-being.

This is where a digital heath bank comes into play, the evolution of technology is characterized by the progressive decrease of costs and increased simplicity, and this is exactly what digital banks do. They allow you to safeguard your health with minimum expenditure, increased life savings, and a range of other features.

How can a digital health bank benefit you?

About 800 million people spend at least 10 per cent of their household budgets on medical expenses, according to a 2017 report by the World Bank and the World Health Organization. That’s substantial enough to send 100 million people into extreme poverty, according to the study. Now it is evident enough that a small medical hurdle would completely disrupt most people’s lives. We often see families and individuals do have savings and investments but that would not compensate for future expenses and medical emergencies. This is where a health bank comes into the picture to help you save money even without you realizing it and provides your family with holistic health solutions.

OCareNeo, a digital health bank for example not only concentrates on your finances but amalgamates your healthcare needs and provides you with a holistic solution to protect the lives and keep their happiness intact. OCareNeo aims to bridge the gap between the healthcare and financial ecosystem through its health-first neo banking platform. The platform to empower people with alternate savings, effective fund management, remote healthcare of loved ones, emergency medical loans, discounted healthcare services, and much more all under one roof.

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