Nowadays, businesses are functioning from banks and are digitally operated with financial applications and services. Neo-banks is digitally powered by a fintech company that conducts transactions online with all the precautions.
Traditional banking practices like a deposit of cash, large documentation, and hours of interaction with bank employees have been finished due to the Neo-banks. It offers mobile and digital application services such as debit cards, loans, cash transfers, and payment.
Neo-banks aim to provide proper finance services with the help of AI and fintech at a lower price, a gap between conventional banking applications.
The Reserve Bank of India does not control Neo-banks; they are banking partners like ICICI, HDFC, and other banks that belong to the RBI.
According to the legitimate source of BFSI economic time, it is expected that $394 billion could come from Neo-banks over three years, i.e., in 2026; this shows how rapidly the neo-banks segment in India is growing.
In a speech on digital banking during the union’s budget, 2022 finance Minister Nirmala Sitharaman announced that 100% of the post office would be included under the banking umbrella. This means that the post office and bank accounts will be available via online banking, mobile banking, and ATMs.
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What are Neo-banks?
Neo-banks are banks that operate online and do not have physical banks, They provide the services that physical banks provide, but they operate in a digital mode.
The idea of Neo-banks began in 2013 and came in highlighted in 2017; known by the challenger bank, they are developing as a part of their parent banks that are physically located.
Neo-banking experience banking online whe
re the entire offering of services is virtual from the initial client, and the registration is like the basic banking options. It is innovative that involves the fintech and financial sectors.
They work through Artificial Intelligence and machine learning to provide personalized and customized financial services to the customer and lower the operating cost.
| Name of Neo-Bank | Interest Rate | Type of Account | Founders | Founding Years |
| Freo | Upto 7% | Personal Saiving account | Bala Parthasarathy, Anuj Kacker, Kunal Varma | 2015 |
| Fi Money | Upto 3% | Personal Saving Bank | Sumit Gwalani, Sujith Narayanan | 2019 |
| Jupiter | Upto 4.75% | Personal Saving Bank | Jitendra Gupta | 2019 |
| Instant Pay | – | Business Account | Shailendra Agarwal | 2013 |
| Fampay | – | Personal saving account for Teenagers | Kush Taneja, Sambhav Jain | 2019 |
| Mahila Money | – | Business Account | Sairee Chahal | 2021 |
| Niyo | Upto 7% | Personal Saving Account | Vinay Bagri | 2016 |
| RazorpayX | – | Business Account | Harsheel Kumar | 2013 |
| Chqbook | – | Business Account | Vipul Sharma, Rajat Kumar and Mohit Goel | 2016 |
| Zikzuk | – | Business Account | Raj N | 2020 |
Best 5 Neo-bank in India
- Chqbook
- Jupiter
- Fi Money
- instant pay
- Razorpay
Chqbook Neo-bank:
Chqbook is the very first neo bank in India that grew from small businesses. Vipul Sharma started it in 2017.
It has various features, including no fees or loans and the reward-based opening of current accounts daily reward for credit card or debit transactions.
Neo-banks offers the best quality of financial services with the five banks, i.e., lending and rewards, khata banking and insurance, and best pension schemes, home loans, saving schemes, investment plans, and personal loans.
It was awarded numerous times through the initial period in India and named the winner of Tech30 Techsparks 2019 and Fintech Rocketship 2019. Chqbook has 800,000 customers.
Chqbook has the following features:
- Transactions Reward
- Khata is a digital leader system that lets you monitor transactions.
- Insurance Coverage
- Credit free
- Current account banking allows bank accounts.
Jupiter Neo-bank
Jupiter is a neo-bank with a relationship and partnership with the Federal Bank. It was designed for the digital consumers of the present with the ability to keep pace.
Jitendra Gupta founded it. Jupiter offers zero balance facilities with reward points of 1% on debit cards and UPI transactions. The automatic saving mechanism pots, which is saving mechanism, which offer a 2.5 percent return on investment.
Jupiter is the most efficient 100% digital bank licensed by RBI in India that is UPI-based, ISO, and PCI fully compliant.
This has many offers and features such as no hidden cost, no balance account, and mutual funds; it has the most popular feature, the spending habits tracking feature, which is called insights.
Jupiter allows the user to use the application in two methods:
- First, to receive an invitation from a member already in place.
- The alternative is to receive an invitation created by the team from Jupiter.
Fi Money Neo-bank
Fi Money has a partnership with the Federal Bank, which the RBI approves. You have the option of opening multiple saving accounts with no balance.
It has various features for saving accounts that can open with zero fees, no commission fee mutual funds, and zero markups for foreign currency. The annual account holders are charged one percent of their savings accounts’ annual interest rate if they decide to withdraw early.
The co-founder of GPay Sijit Narayanan and Sumit Gwalani 2019 founded fi Money. It has secured services as well as rewarding awards.
Every account holder member of FI money bank gets the option of having a VISA debit card, which is credited to the accounts they create.
Instant Pay Neo-bank
InstantPay is one of the largest neo-banks in India because it provides online banking services to customers and businesses with the size and capacity.
It is a well-known brand that allows the instant opening of the account, cash deposits and active account tracking, and a 24-hour customer service system.
Instant pay offers personal banking services, such as cash withdrawals from the ATM with no minimum balance, transaction limits established online or stored payment, and bank deposit money investment.
Business banking uses the CRM for expenses management, overdraft, business loans, customized accounts, debit cards, value-added services, and multi-directional payment collection.
Instant pay banking allows users to experience instant pay digi Kendra and has features like travel booking, citizen services insurance service, and money transfers.
The well-known partners Instantpay in this Neo-banks include Axis bank, Yes bank, ICICI Bank, and IndusInd Bank.
Razorpay Neo-Bank
Shashank Kumar founded RazorpayX in 2014, an API and dashboard-based pay-out system for retailers. The program allows businesses to automate their payroll by making the payment available.
It also helps decide a company’s credit limit, reduces costs for the companies, automates tax payments, and issues urgent loans.
It has prominent investors, including Ribbit Capital, Sequoia Capital, Matrix Partners, Tiger Global, GIC, and well-known outstanding angels.
Conclusion
In India, neo-banks have changed the way traditional banking works; it has given innovation to save time and manage money well.
Various businesses have a lot of bank activities, and the primary reason is the personalized and customized financial services of the Neobanks.
It has excellent savings, tailored financial solutions, no-cost banking services, operational ease, and the latest technological advancements.
Frequently Asked Question
- What are the Neo Banks in India?
Neo banks are digital banks that do not have physical branches and provide financial services through smartphone apps.
- What is Neo Banking open?
Neo banking platform is the first Asian bank that performs the business banking ease that comes with a VISA business card and blends banking and payment.
- Which Neo bank acquired Finn?
Google-backed Neo bank opened and acquired Finn on December 14, 2021, in cash.
