The world we live in is called digital for a reason, from Artificial Intelligence to social media; everything is possible because of Technological Advancement. These technologies have created such a way that there is hardly anyone who is not connected to them.
With new technologies getting invented every day, digital means of payment have become the new normal in this decade. Now, banking is a very significant part of our life. Thanks to banking we are enabled to have our money saved in a bank account and it provides safety to that amount. Plus we get our salary credited there. Not only that, banks also lent money to individuals and businesses.
A couple of years ago, using a virtual bank seemed like a scene from a sci-fi movie but now, it’s a reality. The definition of payment has changed; with the help of technologies transferring money from one account to another is possible through the internet itself. Thus, the way of banking has also changed; we can get the facility of a bank without a requirement of one. In India, Fintech platforms are now setting their eyes on a certain industry and that is called the Neobanks.
“Banking is Necessary, Banks are Not.”
― Bill Gates
In this article we will find out about the Neobank industry in India and its future, So let’s dive in.
What Is Neobank?
Advantages Of Neobanking
Top 5 Neobanks In India
Future Of Neobank Industry In India
FAQ
What Is Neobank?
To be specific, a Neobank is a kind of a bank that is digital and doesn’t have any branches physically. It is completely online and they entirely focus on providing every facility of a bank that is money transfers, financial solutions and money lending through mobile phones.
Although Neobanks doesn’t own bank licenses but rely on bank partners, therefore are able to provide services of a bank to the customer.
With the increase in the process of online banking and the acceptance of digital payments, Neobanks are becoming a new trend in the country. Neobanks provides good customer service and is very much customer-centric.
Advantages Of Neobanking
People prefer Neobanking for various reasons and some of them are:
- Creating an account in neobank is much easier than creating a physical bank account. Just following some simple steps one can create their account from anywhere and anytime through their mobile.
- International payments are possible through neobank card, while a traditional bank debit card doesn’t provide that service initially, we have to request for an international debit card for global transactions.
- Neobanks are user-friendly and are designed to fulfill the demands of the customers.
- Every transaction made through Neobanks are updated immediately on the app.
Anik Banerjee
Top 5 Neobanks In India
Covid-19 played a huge role in intensifying the digital banking methods amongst the customers. Some of the most famous Neobanks in the country are listed down below.
Instantpay
It is considered one of the largest neobanking platforms. From small to big businesses and individuals enjoy Instantpay’s neobank service. This neobank founded by Shailendra Agarwal the bank process millions of transaction per day. It is easy to use and can be operated from mobile and web. Instantpay’s partners are ICICI Bank, Axis Bank, IndusInd Bank, and Yes Bank.
FamPay
This neobanking app is specially made for teenagers. Of course, supervision from their guardians is to be done. Their main aim is to make the teenagers empower and independent by encouraging them to make decisions regarding their spending.
This app is founded by Kush Taneja and Sambhav Jain in the year 2019 and is used for basic payment for Zomato, Netflix, Swiggy Amazon, and many more. Its banking partner is IDFC Bank.
Jupiter
This neobank service was founded in the year 2019 by Jitendra Gupta and Vishnu Jerome. This neobank provides the customer with an option to monitor their money spending pattern and doesn’t have any hidden fees. It does have a calculator that lets the customers watch on their financial health. Plus it gives out lots of rewards as well. Jupiter’s banking partner is Federal Bank.
Open
This neobank helps businesses say goodbye to all those hassles while opening a bank account. This was founded by Ajeesh Axhuthan, Anish Achuthan, Deena Jacon, and Mabel Chacko in the year 2017. Open helps startups and businesses with banking, payments, and accounting. It also gives out a business credit card.
Razorpay
Razorpay is the first neobank to enter the club of Unicorn. It was founded in the year 2014 by Harshil Mathur and Shashank Kumar and has served 10 thousand businesses. The best part is that the current account gives out features like cheque books, debit cards, and account statements. Razorpay's banking partner is RBL Bank.
Ashwini
Future Of Neobank Industry In India
In 2019 Neobanks raised $90 million in India. People are getting more familiar with digital financial services and with all those facilities prefer them over others as well. Although RBI doesn’t provide licenses to virtual banks, they collaborate with physical banks and let the customers use their services. In the last three years, India witnessed a steep rise of neobanks and with the trend, it is only going to rise in the coming years.
Conclusion
The world is witnessing a change that is revolutionary, everything is turning digitalized. It wouldn’t be wrong to say that the entire world is being ruled by the devices that we carry in our pockets.
With almost every service available digitally, the tech-savvy generation is indulging themselves into it enthusiastically plus the older generation are being a part of this change.
Banking, which is one of the most important parts of our lives, it is now available without physical branches, thus this boon of technological advancement is making life a lot easier.
FAQ
What is neobank?
A neobank is a virtual bank that operates entirely online from customer onboarding, to availing the simplest banking services.
Which is the best neobank in India?
RazorpayX, Fampay, Jupiter and Instantpay are some of the top neobanks in India.
How many neobanks are available in India?
There are a total of 27 Neobanks in India.
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