With change in the financial landscape, shifting more toward customer satisfaction and experience, a gap has been created between the offerings of traditional banks and customer’s needs.
What is a Neobank?
Neobank is a digital bank without any branches offering multiple financial services to the tech-savvy customers. It works entirely on online mode, providing services from money transfer, payments, lending to opening a bank account in a hassle-free and smooth manner. Neobanks partner with traditional banks to provide bank licensed services and in return it helps traditional banks in expanding their customer base in a seamless manner.
What are the Advantages?
Neobanks, being completely digital, open up a wide window of advantages for customers and change their banking perception. Right from opening a bank account by following a few simple steps from the comfort of your home, it provides seamless and user-friendly experiences to its customers.
Neobanks’ apps are very much accessible unlike the glitchy net-banking sites. With being quick in responses and smart reporting, they also provide a customizable way of keeping a track of one’s finances and helps them in managing it combined with constant advice.
Every now and then there are new players in the market whose essential goal is to simplify the financial sector.
India’s Top 4 Neobanking Startups
Currently there are 10 neobanks in India with a couple of more in-process to enter the market or in beta stages.
It is a Bangalore-based neobanking startup, established in 2015, catering the blue-collared sectors, salaried employees and Indians who travel globally. Niyo is helping salaried employees with solutions to make the most out of their salaries.
Niyo has also launched a global card dropping the need to purchase a forex card during international travels. Collaborating with Upwardly, it is educating customers on investments and financial benefits.
This Bengaluru-based startup, when started in 2017, partnered with ICICI bank. Presently it has almost 11 banks as partners. It offers startups and new businesses with an online bank account and a credit card that consolidates banking, accounting and payments in a single platform.
As a result, it is easing up hectic procedure of the current banking system. It also helps SMEs in automating bulk payments and digitising financial services.
A startup within a startup is a neobanking platform of India’s Newest Unicorn Razorpay. It is simplifying and accelerating every aspect of financial operations from payments and management of cash flow to reconciling transactions and flexible payouts.
It also eases the refund process for e-commerce businesses with their API and dashboard payout platform. Also, with the help of opfin, a payroll and HR management software company, it manages tax filing and compliance through a unified platform.
The startup delivers hassle-free banking experiences by offering instant activation, money tracking and cash deposit features to individuals and businesses of all sizes.
With its API banking platform, which is a super scalable cloud platform, it auto scales from zero to a million transactions in a single day. It also provides users with a digital bank account and for startups and SMEs, a smart bank account.
Business Owners Who Aspire To Be In Neobanking
With RBI focusing on digitalization and financial inclusion, collaboration of Fintech and banks has become an emerging space in the banking sector in India.
Neobanks are taking over the Fintech industry by a storm on a worldwide level. Every now and then there are new players in the market whose essential goal is to simplify the financial sector.
India is moving towards an era of rising Fintech sector. With the increase in the number of people adapting the online mode of banking and bridging the gaps between traditional banks and customers, the potential of the neobanks market is very promising.