Neobanks are financial institutions that provide customers with a less expensive option than regular banks. You may conceive of them as digital banks with no ‘brick and mortar’ type physical branches. They provide services that traditional banks do not and do so effectively. Neobanks use artificial intelligence and technology to provide tailored services to clients while lowering operating expenses.
These companies don’t have their own bank licences in India, thus they rely on bank partners to provide licenced services. This is because the Reserve Bank of India (RBI) does not yet enable banks to be completely digital.
Traditional banks may have a number of advantages over neobanks, including access to capital and, most significantly, the trust of their customers. Legacy systems, on the other hand, are weighing them down, making it impossible for companies to adapt to the changing needs of a tech-savvy youth. While neobanks lack the money and client base to overturn traditional banks, they do possess a unique weapon: innovation. They may introduce new products and form partnerships to better serve their consumers, significantly faster than traditional banks. They use the mobile-first concept to set themselves apart by introducing cutting-edge products and providing exceptional customer service.
India’s top Neobanks
- Jupiter
- Fi Money
- Niyo
- OcareNeo
- ZikZuk
- Kotak 811
- InstantPay
- RazorpayX
- North Loop
- Digibank
Jupiter
As of 2022, Jupiter is India’s most popular Neobank.
Jupiter built a forum where users could share features, report bugs, and test the beta software, making it a popular choice among users.
When you spend money with Jupiter, you are rewarded. You’ll get 1% back on every single expense transaction. This prize is known as “jewels,” and they never expire and may be exchanged for cash at any time.
One can also place their savings in pots on auto-pilot mode. They can also obtain real-time information as well as a detailed breakdown of their spending. Jupiter claims to offer zero-balance accounts and provides users with immediate help.
Fi Money
Founded by the co-founders of GPay, Sujith Narayanan and Sumit Gwalani, with the tagline “Banking Just Got Smarter”, Fi Money is designed as a neobank with secure digital banking services for the working professionals of today.
The neobank offers a smart, zero-balance savings account loaded with many innovative features that help professionals manage their money in a better and more refined manner.
- In-app assistance helps you seek answers to questions like “where did I spend my money?”, “how can I save more?, etc.
- Set payment reminders, easily cancel subscriptions, and manage many more activities.
- Create rules using Fi auto-bot. For instance, automate actions like save, pay, or remind about a payment/subscription with a single tap. Easily modify rules when needed.
- Make flexible, smart deposits to grow savings using Fi jars. Also get rewarded for every penny saved.
Niyo
Niyo brings a suite of useful banking products:
- Niyo X — An efficient app that offers the customers the facilities of savings and helps them manage wealth without hassles. With Niyo X, you earn rewards with your salary every month!
- Niyo Money — Empowered by robo-advisory, Niyo Money helps the customers grow and manage wealth. One can achieve their financial goals using their Goal-based advisory powered by unique algorithms.
- Niyo Global — With Niyo Global the customers need not worry about round-the-clock support along with earning upto 5% interest against their savings. It is accepted in 150+ countries and 100+ currencies.
- Niyo Bharat — Marketed as an open banking platform, Niyo Bharat is an app that ensures salary cards for the employees. With Niyo Bharat, you get a Lifetime zero balance prepaid card, a Multilingual app supporting over 10 languages and also Payroll, HRMS & Salary transfer modules for employers.
Neobanks have the potential to become more than just the newest fintech buzzword. Neobanks have yet to fully realise their potential, owing to legislative constraints. In the coming years, the banking sector may see an invasion of neobanks that will forever redefine the face of banking. Neobanks can improve the consumer experience while also streamlining complex banking operations because they have no legacy baggage and limitless technology capabilities. Neobanks, like regular banks, may one day eclipse traditional banks and become the future of banking as technology innovations continue to alter the world.
Sources :
