Neobanks are financial enterprises, akin to regular banks, that operate solely on digital platforms, such as mobile applications (apps) or website platforms. The Top Neobanks in India do not have any physical presence across the nation and operate solely through virtual networks.
Since neobanks are majorly technology-based, their popularity has been soaring owing to their better usage of Artificial Intelligence and a plethora of personalized services that the traditional banking system still lacks. However, when it comes to the customers knowing their banking personnel through face-to-face interaction, traditional banks enjoy supremacy over their virtual counterparts.
List of 10 Top Neobanks in India
With the entire fintech ecosystem gearing towards ease of usage and customer satisfaction, neobanking in India has seen significant profits over the last few years. And if experts are to be believed, the future of neobanks in India is pretty bright. Here's a list of neobanks in India --
Name Of The Neobank
Sumit Gwalani, Sujith Narayanan
Dr. Neeraj Sheth
Mabel Chacko, Ajeesh Achuthan
Sudheer Maram, Suman Gandham
What is the Future of Neobanks in India?
Despite neo banking in India being a seemingly newer concept, the future looks pretty promising, with the youth and numerous business enterprises seeking the services of these virtual banks more than their traditional counterparts. Although neobanks started forming around 2013 with InstaPay and RazorpayX, it was only in 2018 that this virtual form of banking started flourishing on Indian soil.
By 2018, net banking in India was preferred by 7.7 million of the population, which tripled by 2020. And with e-commerce and online businesses steadily showing great success in India, the future of neobanks is pretty promising.
Can Neobanks Replace Traditional Banks in India?
While the future of neobanks in India certainly looks bright, for it to erase the popularity and credibility of the traditional banks is a distant thought. There are mainly two reasons for neobanks to trail behind the traditional banking system -
- Traditional banks in India offer a variety of services and products, keeping in mind customers from all strata of society. As a result, one can find traditional banks even in the remotest of Indian villages which do not have any internet facility. On the contrary, the top neobanks in India offer a handful of products and services curated specifically for a certain customer base.
- Since the rate of smartphone penetration in India is 54% as of 2020, the number of non-tech-savvy people in the country is huge. To them, the idea of a bank remains the traditional modes of banking from brick-and-mortar institutions recognized by the RBI. Furthermore, since neo banking in India is essentially a new concept, even for the tech-savvy population to completely switch over to the neobanks seems pretty bleak.
With the list of neobanks in India increasing in number, it can be said that neobanks have a bright future in the country. However, to defeat the traditional banking system, neobanks have to introduce policies, products, and services that cater to wider audiences and not predominantly the youth of India.
FAQs about Neobanks in India
- Is neobanking in India a new concept?
Yes, when compared to the traditional banking system, neobanking in India is indeed a new concept that has been around only about a decade.
- How is the future of neobanks in India?
Neobanking is steadily becoming a popular concept in India. With many e-commerce enterprises and online businesses preferring neobanking over traditional banking, the concept is going to accelerate in the future.
- What are the top neobanks in India?
Among the most popular neobanks in India are RazorPayX, Jupiter, FI Money, and Kotak811, to name a few.