Top 11 Neo Banks in India

/453 Comments/in /by

In India, Neobanks are digital-only banks with no physical offices that provide a wide range of services not available through traditional banks. 

 

They use artificial intelligence and machine learning to provide end-users with personalised and customised financial services while lowering overall operating costs.

 

Smartphone penetration, particularly in India, has increased to 60.63 percent in 2021 from 46.44 percent in 2019 (CAGR 14.26 percent), because of the COVID-19 pandemic. This rise in smartphone usage across the country has aided Fintechs and other comparable organisations in bringing about much-needed change way faster than expected. 

In India, the outbreak of the COVID-19 epidemic aided the creation of neobanks. People of various ages and backgrounds are teaching themselves and their peers how to become tech-savvy and take control of their finances by using Neo banking services.

 

Neobanks in India currently target three distinct consumer segments: 

 

  1. High-end customers that are constantly seeking better and frictionless banking experiences. 
  2. Customers that are underbanked do not have access to high-quality banking services and have an uncertain income. 
  3. Working-class people who want to learn how to handle and develop their money in order to become financially independent. 
  4. Another area that is becoming reliant on Neo Banks is micro, small, and medium-sized companies (MSMEs).

 

Currently, numerous neobanks in India are focusing on each of these categories. They provide a variety of banking and financial management services, ensuring that the target audience has access to what they require at any time.

 

Here are the top NeoBanks currently operating in India- 

 

Jupiter

 

Customer centric Neo Bank, founded by Jitendra Gupta in 2019.

 

It works on making the digital banking experience simple, seamless and as convenient as possible for customers. 

Works towards 

-Making banking simple

-Tracking finances easily

-24×7 customer service

-Complete transparency in banking services

-Saving account setup in just 3 minutes

-No hidden charges

-Providing financial guidance

-Provides exclusive Debit Card to its customers with benefits such as – 1% reward on all purchases, security features like freeze and sleep, no annual charges, exclusive discounts.

 

InstantPay

 

Digital banking for businesses and individual customers, founded by Shailendra Agarwal in 2013. With the slogan “ Banking for the New India “, InstantPay provides easy banking options for individuals to save, manage and spend money online. As per records, InstantPay processes more than One Million transactions everyday.

Mostly know for providing- 

-Instant account setup

-Money tracking

-24x7x365 customer support service

-Cash deposits

 

InstantPay is working with a number of well-known Indian banks, including ICICI Bank, Axis Bank, IndusInd Bank, and Yes Bank, to provide users with seamless financial services.

Customers have the option to use the InstantPay website or download the InstantPay mobile app. Both platforms are user-friendly. 

Businesses can quickly perform financial transactions by integrating InstantPay’s API with their accounting systems. Businesses can use the API to automatically scale from zero to a million transactions per day. 

 

InstantPay digital account services includes- 

-No requirement for a minimum balance 

-Services for cash withdrawal 

-Set spending boundaries and track finances. 

-Make payments both online and in person. 

-Make significant investments 

 

MSMEs (Small and medium-sized enterprises) can create bank accounts and use a variety of services, including-

-Accounts with debit cards and cheque books 

-Money can be received and sent to merchants, individuals, and other enterprises. 

-Using an in-built CRM system, onboard and managing customers, vendors, and staff. 

-Request  business loan. 

-Make investments and manage corporate spending. 

 

InstantPay also provides the InstantPay Digi Kendra service, which allows customers to conduct basic banking transactions, obtain insurance, book trips, and much more while on the go.

 

Niyo

 

Founded by Vinay Bagri in 2016, Niyo is a Neo Bank which believes in making banking smarter, safer and simpler.  Niyo has multiple suites of modern banking which includes-

 

NiyoX-

A is a savings account that includes wealth management capabilities. 

-Provides 7% interest on saving accounts.

-Option to invest in mutual funds directly. 

 

Niyo Global-

Enables customers to travel the world with ease. 

-With no markup on Forex anywhere in the world. 

-Enable customers to spend INR in over 150+ currencies with no additional fees. 

-Customer service is available 24×7, via in-app chat. 

-Interest rates on deposits of up to 5% 

 

Niyo Money-

Account with in-build Robo-advisory for wealth management 

-Providing option to invest in no-commission mutual funds. 

-Enabling customers to Import, monitor, and manage mutual fund portfolios. 

-To attain financial goals, use goal-based advisory services. 

-Invest in stocks and ETFs on the domestic and international markets. 

 

Niyo Bharat-

An open-banking platform for enterprises and employee wage cards. 

-Providing prepaid cards with no balance

-Over ten languages are supported by this multilingual software.

-Option to have hassle free and instant salary transfers, HRMS and payrolls.

 

RazorpayX

 

Founded by Harshil Mathur in 2013, one of the business centric Neo Banks, providing strong and simple business banking alternatives to businesses. RazorPay X is designed to boost Indian enterprises’ banking and finance with a fully digital account, automatic payments and payables, corporate cards, and deep financial insights all in one spot.

Providing services 

-To manage receivables and payables at one place

-Automated payments

-Reporting of cash flow trends

-Instant loans provision

 

It is one of the most used Neo Banks by small and house grown businesses, essentially during and post Covid.

 

Open

 

Founded by Ajeesh Achuthan and Mabel Chacko in 2017, Business centric platform. Open is a well-known digital business banking service used by over 20,00,000 Indian companies. Open, based in Bengaluru, promises to make commercial banking easier. Open business accounts, which were founded in 2017, provide VISA business cards that can be used for banking, payments management, accounting, and more. On December 14, 2021, the company paid $10 million and acquired another Neo banking startup, Finin, which is a customer centric Neo bank.

 

Finin

 

Founded by Suman Gandham and Sudheer Maram in 2019, it is a consumer- focused Neo Bank. Aims to deliver “a new approach to banking.” The first consumer-facing neobank offers a full app that makes account opening and management simple. Finin, which is powered by the newest Artificial Intelligence technology, also provides customers with sophisticated financial insights. On December 14, 2021, Open announced the acquisition of the company, which would offer value to Open and its SMEs.

They offer-

-Incentives and rewards that are hyper-personalised 

-Interest rates that are competitive and appealing 

-Customer service available 24×7 

-Account and wealth management

 

The neobank seeks to give people ultimate control over their finances. 

-Provides an option to open an account, in less than 2 minutes.

-All existing accounts can be viewed in one spot. 

-Get AI-powered savings and spending insights. 

-Provides automated notifications and reminders, to save more

-Highly intuitive mobile app ensures a clear, enjoyable, and hassle-free banking experience.

 

Freo

 

Founded by Anuj Kacker in 2016, is a one-of-a-kind neobank in India, built specifically for the banking needs of millennials. Its goal is to give customers simple, intuitive, totally digital banking services that allow them to manage their finances with convenience and comfort using their phones.

 

Freo allows clients to build credit health while managing spending and saving for the future, among other things. 

Customers can also access financial items such as-

 

-Credit line for life (of up to INR 5,00,000, as of date) 

-EMI 

-Credit cards 

-Savings and deposits 

-Option to buy now and pay later 

 

The neobank is developing a number of new digital banking tools to assist people manage their finances easily and avoid cash shortages.

 

OCareNeo

 

Founded by Dr. Neeraj Sheth in 2015, with tagline “Your Digital Health Passport”, was founded to help the new generation to focus on their medical needs. Deriving from its name, OCareNeo is India’s first digital health and banking platform. 

OCareNeo guides its consumers through their digital health journey, giving them rapid access to their own and their family’s health as well as financial information. The company offers the unique feature of a Digital QR code that stores the owner’s health history and insurance information, as well as a Digital Card and Digital Piggy Bank for paying medical bills and saving for health. OCareNeo also assists consumers in insuring their health with a choice of safe and simple insurance policies.

They provide services such as- 

 

-Providing instant access to medical history, e-insurance information, and medical reports. 

-Make savings pools and make its customer ready to handle medical crises. 

-Using OCareNeo card to pay medical bills promptly by connecting it to OCareNeo bank account. 

-With OCareNeo’s Health Score, one may keep track of his physical and mental health, sleep patterns, and daily nutrition. 

-Keep updates on the next health check-up. 

 

North Loop

 

Founded by Tahem Veer Verma in 2019, focusing on International and NRI banking facilities. North Loop is renowned as “India’s financial hub.” North Loop, based in San Francisco and launched by Tahem Veer Verma in 2019, is the first of its type to provide digital NRI banking services. The NRI banking startup combines all financial services into a single app. NRI consumers can open accounts with North Loop in as little as 5 minutes and obtain a wide range of banking services with high security.

 

It provides services –

-To monitor spending and savings. 

-There are no account or ATM fees. 

-No requirement for a minimum balance 

-Credit and loans are available. 

-Up to 8x points can be earned. 

-While global banking, enjoy transparency and fairness. 

 

Customers can now take advantage of worldwide investment through North Loop’s user-friendly mobile app. Stocks, ETFs, mutual funds, fixed deposits, and cryptocurrency are all good options. Individuals can also create tailored, goal-based programmes to help them save and plan for their future. 

 

Fi Money

 

Founded by Sujith Narayanan and Sumit Gwalani in 2019, Fi Money is a neobank delivering safe digital banking services for today’s working professionals, with the tagline “Banking Just Got Smarter”. Fi, founded by the co-founders of GPay, offer sophisticated zero balance savings accounts for consumers so that they can better manage their money. Along with simple savings choices that allow users to earn up to 5.1 percent interest, Fi Money also provides them with an assistant that can answer practically any user question, such as “where did I spend my money? “ or “how can I save more ?”. Fi Money users can also take advantage of secure banking services and enticing rewards.

 

RJ Neo Bank

 

Founded by Mr Kedar Pathak, on 10th August 2017, Reijiro Networks’ RJ Neo Bank is a neo bank that aims to bring financial inclusion to rural India’s last mile. In rural Bharat, it is developing a Neo Bank Platform with a network of banking and non-banking financial services kiosks. The RJ Neo Banking platform and Reijiro Reseller Network are intended to supply complete banking services. It improves the efficacy, efficiency, and quality of all financial procedures in corporate banking. Reijiro Networks now has 450 SBI kiosks, 1200 non-banking Reijiro kiosks, Rs. 296 crores in transaction volume, Rs. 23 crores in non-banking transaction volume, and 13 lakhs registered accounts. Reijiro Networks is already working with over 1000 resellers. Reijiro is also working to educate and raise awareness among them about RJ Neo Bank, which will lead to onboarding and expansion.

 

Services provided by RJ Neo Bank includes-

– Easy Cash withdrawals using Aadhar Card

– Seamless Cash Deposits

– Paperless Money lending

– Simplified Insurances

– E- Toll Collection

 

In India, neobanking is ushering in a new era of banking. It not only assists individuals and businesses in leveraging smart banking actions, but it also assists them in managing their finances and even growing their money over time. Another factor for the rapid expansion of neobanks in India is the use of new-age technology and the idea of providing tailored and personalised financial services. 

While traditional and challenger banks are attempting to enter the race, neobanks have already passed the halfway point. Their technical systems’ simplicity and modernity, as well as inexpensive or no-cost banking services, higher savings rates, and customised financial solutions, are assisting them in their success. Neobanks are likely to overtake traditional banks as market leaders in the next few years.

Neo Bank- Banking the Unbanked

/426 Comments/in /by

According to the World Bank, the average banked population in low-income countries is 32.6 percent, while the average banked population in high-income economies is 90.5 percent, despite the fact that low-income economies’ GDP per capita is less than 2% of high-income economies’. Even a little increase in financial inclusion can result in an exponential rise in economic development. 

 

In India the majority of the population, nearly 65% of total population, lives in rural areas. Among them, there are still many people without bank accounts or easy access to financial services. Because financial inclusion and economic growth go hand in hand, India’s significant number of unbanked citizens is cause for concern.

 

The matter of concern here is to include the disadvantaged or population of rural India into the financial system, as any transaction outside of this system is loss for the economy. To address this issue, the RBI and Government of India have been working. 

The RBI has been encouraging the banking sector to expand its network by opening new physical branches, expanding the scope of business correspondents, and installing new ATMs/WLAs at every tier. The government has previously implemented many initiatives such as no-frills zero balance Jan Dhan accounts, DBT programmes, issuance of RuPay cards, issuance of Kisan Credit Cards, Aadhaar-enabled programmes, and unified payment interface throughout the last decade, all this to bank the unbanked citizens of country.

 

All this has worked, as In 2017, approximately 80% of Indians (aged 15 and up) have a financial institution or mobile-money service provider account, up from 35% in 2011. Account ownership among Indian men increased from over 62 percent in 2014 to 83 percent in 2017. In 2017, female involvement climbed from 43% in 2014 to over 76% in 2017. All of these figures increased even more after 2020, thanks to Covid-19 and the pandemic’s digital transformation.

 

Apart from steps taken by RBI and GOI, the factor behind this rise is the emergence of Neo Banks. Neo banks are financial institutions that operate entirely on digital platforms using internet, mobile applications and websites. 

The Unbanked Population

 

Gender– 

It is witnessed that out of the unbanked sector, there is a big chunk which is of women, specially from poor households in rural areas, who do not have access to financial services and are unbanked.

 

Income–

Though there has been a rise in account ownership of poor people due to schemes such as Jan Dhan Yojana, poor adults still occupy a great share among the banked.

 

Age–

In India there is a fair share of people between the ages 15-21 in the population, and in this population there is a great share of people who still do not have any bank account and are excluded from the financial system.

 

Education– 

It is observed that the majority of these unbanked citizens have bare minimum education and knowledge and do not have bank accounts, either due to lack of knowledge or because of the fear of getting their money stolen.

 

Why are people unbanked ?

 

  1. Lack of Infrastructure-

 

There are nearly 664,369 villages in India. And to cover such a population which resides in these villages, it is not possible to have so many branches of banks. Having a branch of a bank comes with costs- cost of setting up, maintenance and so on and having a branch of bank in every village where each village has a population of say 5000 is not possible and feasible. To solve this issue GOI came up with kiosks in rural areas but still that costs more than the value and becomes a reason for loss for the government.

 

  1. Distance-

 

As it is not feasible to have a bank in every village, the nearest bank branch is also far away from many villages, which people acknowledge as a reason for being unbanked.

 

  1. Lack of Education- 

 

Individuals who are unaware of the advantages and importance of joining the formal banking system, or for whom the financial products and services are inaccessible or unaffordable, do not consider it a priority in their daily life. Many people do not have knowledge regarding the importance of their money in the economy. They do not have bank accounts as they do not know how it would help them.

 

  1. Fear- 

 

Lack of knowledge gives rise to fear, fear due to lack of information and knowledge such as some people do think that their money might get stolen from their accounts. They are afraid to trust banks with their money and hence prefer not having an account and remain unbanked.

 

  1. Cost-

 

People have low confidence due to hidden charges, as banks do not disclose the hidden charges to account holders upfront.

 

  1. Lack of Money-

 

Having little money or simply poverty is one of the reasons for people being unbanked, as they believe they do not need a bank account for such a small amount that they have.

 

Digital to the rescue

 

In India it all started with the introduction of Aadhaar, which was the first step towards empowering people. With a long term vision of providing unique identity, procuring and securing data of citizens, Aadhar was implemented. Later it became a tool to track the money and in order to keep check on the flow of money, GOI and RBI came up with Aadhar Payment Bridge, eKYC, DigiLocker, eSign and UPI.

Another step for banking the unbanked was to promote cashless and digital payments, which got quick adaptation due to the pandemic in 2020, resulting in rapid growth of online and digital financial systems from 2020.

 

What can Neo Banks do ?

 

For the growth of business and activities in rural areas, it is necessary to open banks and provide banking services in these areas, but due to constraints discussed it is a bit of a tough task and hence, Neo banks come into play. Neo banks act as a mid layer between consumers and banks, as banks can not reach all consumers, they can get help from Neo banks.

 

Essentially after demonetisation and digital revolution both government and private sector do agree on having alternative banking channels and format , focusing growth of rural and semi- urban India.

 

Neo banks can be useful in this regard as they facilitate

-Unified Payment Interface (UPI)

-Aadhar Pay and BHIM

-Debit cards and Credit cards (for online payment)

-Unstructured Supplementary Service Data (USSD)

-National Electronic Fund Transfer (NEFT)

-Immediate Payment Services (IMPS)

 

Neo banks can be vital tool to bank the unbanked due to its features of- 

 

  1. Simple and Seamless process-

 

Be it setting up an account or doing a transaction both are simple and seamless on neo banks as it facilitates both with less paperwork, documentation and in a short period of time. Making it easy to understand, even by citizens who lack knowledge and education.

 

  1. User- friendly Interface-

 

Cleaner user interfaces and intuitive user experiences, such as regional language support and linkages with accounting and expenditure systems, are being offered by Neobanks, which makes it easy and attractive to use even for citizens with low knowledge and education.

 

  1. Convenience of time and location-

 

Neo banks can be accessed by anyone, anywhere and anytime, making it a good option to solve the issue of lack of infrastructure, distance and time. People can access and use the banking system using their mobile phone from the convenience of their home and their preferred time.

 

  1. Transparency and Insights-

 

Payment penalties, limited ATM withdrawals, and account balance charges have all been eliminated by Neobanks, that means no hidden charges and their customers now have more transparent pricing. 

Most NeoBanks also offer dashboards and visualisation analysis, which provide useful analytics on accounting, payments, receivables, and other financial activities, allowing business owners and even common users to keep track of outstanding payments/receivables, pending invoices, spends analysis, and other financial activities.

 

  1. Combining financial and non- financial services-

 

The integration of financial and non-financial services into a mixed ecosystem benefits MSMEs. Several neobanks, for example, are giving digital solutions to MSMEs that allow them to engage with consumers and suppliers via digital platforms. These platforms give neobanks the ability to combine financial and non-financial services, such as purchase loans, pre-shipment loans, payment gateway services, Financial CRM and customer interaction.

 

6.Ease of adding beneficiaries-

 

Unlike the time taking and complicated process of adding beneficiaries in traditional banking, in neobanks beneficiaries is as easy as adding contact to phone directory. Simply add the contact details and the business is ready to have the transactions.

  1. Low Cost-

Neobanks have been proved to be more cost-effective than traditional banks. Users won’t have to worry about committing a lot of time or money to business banking because most transactions are done online, saving time and money.

  1. Resource efficiency- 

Business operations are smooth, and business banking processes are simplified without the need for frequent intervention. Businesses may submit any number of contacts at once and make payouts in bulk, consumers can notice problems with sophisticated error-code mapping, and much more.

These features of Neo Banks address most of the factors of citizens being unbanked and hence, it can be said that Neo Banks have the power to “Bank the Unbanked” and work towards financial inclusion of rural India.

Reijiro Networks’ RJ Neo Bank is a neo bank aimed at bringing financial inclusion to the last mile of rural India. It is establishing a Neo Bank Platform in rural Bharat, with a network of banking and non-banking financial services kiosks. The RJ Neo Banking platform and the Reijiro Reseller Network will be used to deliver all banking services. It improves the efficacy, efficiency, and quality of all financial procedures, which improves the corporate banking experience.

Neo Bank- Future ka Bank

/5,947 Comments/in /by

Ecosystem be it environment or business, every sector in existence has changed due to technology and innovation and so has changed the Banking sector.

 

Banking sector is the backbone of an economy and for the economy to keep pace with time, technology and innovation it is vital to change. And the latest change that the Indian economy is still adapting to is NeoBanking.

 

Unlike traditional banks, Neo banks are financial institutions that operate entirely on digital platforms using internet, mobile applications and websites. They do not have any physical existence and office but have a vast virtual presence. The only part where they lack behind traditional banks is the trust and interaction part with the customers as there is still a part of customers who either does not trust or do not want to go for neo banks due to lack of face to face interaction, still not entirely but  in one or other way use neo banks.

Neo banking in India has witnessed considerable profitability over the last several years, with the entire fintech ecosystem geared toward simplicity of use and client pleasure. And, if experts are to be believed, neobanks in India have a promising future.

These companies in India do not have their own bank licences and rely on bank partners to provide licenced services. This is because the Reserve Bank of India (RBI) does not yet permit banks to be fully digital.  The RBI has stated that banks’ physical presence should be prioritised, and that digital banking service providers should have some physical presence as well. 

 

Top Neobanks in India

 

RazorpayX

 

It is one of the most used neo banks for online payments for ecommerce.

It helps to automate manual, repetitive financial chores and provide insights into money flow, mostly for business owners and online merchants. Payouts are simplified, credit solutions are available, and current account ledger assistance is available. 

 

Jupiter 

 

Individual bank customers can use it for money transfers, cash withdrawals, savings accounts, and NFC-enabled prepaid cards. It has a dashboard for viewing and monitoring transactions. 

 

Niyo 

 

Provides zero-balance accounts with features including salary advances and free accidental death insurance. Users can also track, manage, and collect employee benefits with the use of forex cards and tax-saver cards. 

 

Open 

 

Open is a neo bank that provides deposit accounts, money transfers, debit cards for online and offline purchases, expenditure management, and invoicing management to enterprises and startups. 

 

EpiFi 

 

Individuals can use digital banking services like savings accounts, prepaid cards, bill payments, and money transfers. It also enables for interest-bearing savings and money management information.

 

InstantPay

 

According to reports, InstantPay is the country’s largest neobanking platform. It provides a comprehensive range of financial services to individuals and businesses of all sizes. The neobank conducts over a million transactions every day, according to data. In India, it is most known for providing accessible banking products, such as 

Account activation in seconds, Money tracking in real-time, Customer Support available 24/7, 365 days a year. 

Customers can use the InstantPay website or download the InstantPay mobile app. Both platforms are extremely user-friendly and intuitive. Businesses can quickly perform financial transactions by integrating InstantPay’s API with their accounting systems. Businesses can use the API to automatically scale from zero to a million transactions per day.

 

PayZollo 

 

Payzollo is another neobank that is doing well in India. It’s a digital-only platform created with millennials in mind. Its goal is to create a new type of banking where individuals may discuss, suggest, and comprehend financial details. To put it another way, it serves as an intelligence hub where people and businesses can learn new things, share advice, and help one another flourish. 

 

Chqbook

 

Chqbook is “India’s first neobank for small company owners,” according to the neobank’s website. Its five pillars – banking, khata, lending, insurance, and rewards – provide a wide range of exclusive and tailored financial services to small-scale Indian enterprises. 

Its goal is to empower the disadvantaged, suffering small and local businesses by providing financial aid and protection. Chqbook currently has around 8 lakh customers from all around the country. Services are provided by chqbook includes Current account with daily transaction incentives, Loans with no fees, customised insurances, transaction records are tracked and maintained via digital ledger services. Chqbook’s platform is powered by artificial intelligence and data analytics, allowing small businesses to have better financial control and extend operations beyond easy.

 

Neobanks for Rural India

 

Neobanks have the power to take business banking to some other heights due to their enormous offerings. Within no time they are accepted by Small and medium businesses, in urban as well as rural India, as they work with a low- cost model and are customer-focused.Here are the few benefits of Neobanks

  1. 24×7 business banking-

Unlike traditional banking, with neobanking the worry of banking hours and banking days is over. Irrespective of time, day and date one can use a bank and its service anywhere, anytime using neobanks. Be it services like NEFT, RTGS, UPI, Refunds, payouts, neobanks facilitates these all all round the clock.

  1. Smart reporting-

Businesses can get an analysis of their work expenses as well as a savings goal that they can tailor according to specific circumstances. Businesses can also browse and download financial data and summaries to aid in decision-making.

  1. Ease of adding beneficiaries-

Unlike the time taking and complicated process of adding beneficiaries in traditional banking, in neobanks beneficiaries is as easy as adding contact to phone directory. Simply add the contact details and the business is ready to have the transactions

  1. User-friendly application performing interface-

Neobanks have additional flexibility to implement solutions that streamline financial operations because of powerful and user friendly APIs. APIs’ real-time capabilities have sparked a spike in their use in banking, resulting in improved visibility in financial management.

  1. Unified platform-

Business gets access to a single platform that allows them to create, control, track, and analyse all types of financial transactions. It also facilitates tools such as Financial CRM to organise and track money transfers to vendors, customers, and staff. 

  1. Seamless Transactions-

Businesses can manage payroll and compliance with ease using, RazorpayX, a neobanking platform, they can automate and execute the complete payroll process with minimal manual interaction. Businesses also don’t have to bother about PT, ESI, PF, or TDS because they’re all handled automatically.

7.Cost Reduction-

Neobanks, unlike regular banks, have been shown to be cost-effective. Users won’t have to worry about devoting a lot of resources to business banking because most operations are conducted online, resulting in saving a lot of time and money.

  1. Automation-

Maintenance of business operations is smooth, and ease business banking processes without having to interfere every now and then. Payouts can be queued or scheduled, businesses can upload any number of contacts at once and perform payouts in bulk, users can spot mistakes with intelligent error-code mapping, and so much more!

Neobanks Vs Traditional Banks

 

While the future of neobanks in India is bright, the prospect of them erasing the traditional banks’ appeal and legitimacy is a long way off. Neobanks lag behind regular banks for due to- 

 

Traditional Indian banks provide a wide range of services and products to customers from various socioeconomic backgrounds. As a result, conventional banks can be found even in India’s most distant areas without access to the internet. The best neobanks in India, on the other hand, provide a limited number of products and services tailored to a certain consumer group.

 

With a smartphone penetration rate of 54% in India by 2020, the number of non-tech savvy people in the country is enormous. The traditional means of banking from brick-and-mortar institutions recognised by the RBI retain the concept of a bank to them. Furthermore, because neo banking is a relatively new idea in India, even the tech-savvy population’s willingness to transfer to neobanks appears dismal.

 

With the growing number of neobanks in India, it’s safe to say that the sector has a promising future. Neobanks must, however, develop policies, products, and services that appeal to a broader audience, not just India’s youth, in order to challenge the old banking system.

 

Future of Neobanks in India

 

Despite the fact that neo banking is a relatively new idea in India, the future appears bright, with the youth and a growing number of businesses preferring these virtual banks to their traditional equivalents. Although InstaPay and RazorpayX were among the first neobanks to emerge in 2013, it was only in 2018 that this virtual form of banking began to thrive in the Indian Market. 

 

By 2018, 7.7 million Indians preferred net banking, which rose to triple by 2020, thanks to pandemic. And, with e-commerce and internet enterprises continuing to thrive in India, the future of Neo banks looks bright.


Reijiro Networks’ RJ Neo Bank is a neo bank that aims to provide financial inclusion to the last mile of rural India. In rural Bharat, it is establishing a Neo Bank Platform with a network of banking and non-banking financial services kiosks. The RJ Neo Banking platform and the Reijiro Reseller Network are intended to provide comprehensive banking services. It improves the efficacy, efficiency, and quality of all financial procedures, enhancing the corporate banking experience.