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 in India is majorly technology-based, their popularity has been soaring owing to their better usage of Artificial Intelligence and a plethora of personalised 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.
Top 10 Neo Banks in India
With the fintech ecosystem gearing towards ease of usage and customer satisfaction, neo banking 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
This Neo bank in India owns a partnership with the Federal Bank. Opening a savings account with this Neo Bank is convenient and easy, and you get a documented account report and aid for any concern. Jupiter provides zero balance facilities and 1% reward points for UPI transactions and debit cards.
FI Money Neobank
Federal Bank provides funding for Fi Money. Users can open numerous savings accounts with this Neo bank in India. Fi Money offers up to 5.1% interest on savings accounts. Users with Fi can also receive a Visa debit card with a secure balance account of up to ₹ 5 lakh.
Niyo is among one of the oldest Neo banks in India. Established around 5 years ago, it has approximately 2.5 million satisfied consumers. This Neobank has the motto of “making banking smarter, safer, and simpler” and offers many essential products and benefits.
OCareNeo is the most helpful Neobank in India, wherein users can make their digital account with a unique Health QR code. It helps to deliver health records just by scanning a QR code. Concerning the spread of various diseases worldwide, this Neobank was founded to give your and your family’s health report immediately from any location.
This Neobank helps in the growth of small-to-medium enterprise founders. It offers FoundersCard, a credit card with exceptional scores and even reward points. ZikZuk also delivers communication banking to developers for handling their business finance and dealings.
Open Money Neobank
It allows direct payouts from a business account without counting beneficiaries. This Neo bank in India comes with a VISA business card that integrates banking, expenditures, cost management & taxes in one go, and it is specially built for small businesses.
Finin is a Neobank in India which is an app that utilises artificial intelligence for the effortless opening of an account and its control. Users can also check the visible insights to enhance their finances. This Neobank was acquired by Open money in 2021 end.
Kotak811 is an entirely digital, in-your-phone bank that you can install. This Neobank in India safeguards your savings and transactions with top-notch protection. Kotak811 provides a free virtual debit card and a zero-balance savings account.
Instapay lets you create a digital account to expend, keep and track your money. It is one of the most popular Neobanks in India that feeds 1% limitless cashback on online shopping, cash withdrawals and pay-later option, with no minimum balance requirement.
Razorpay was launched as an API and dashboard payout medium for vendors, and its software is customised for enterprises to automate their payroll by scheduling invoices. This Neo bank executes duties like restricting business expenses, automating tax revenues, and giving urgent loans.
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What are the Future Plans 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? (Next Evolution of Banking)
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 two reasons for Neobanks to trail behind the conventional banking system -
- Traditional banks in India offer various services and products, keeping customers from all strata of society.
- As a result, one can find traditional banks even in the remotest of Indian villages without internet facilities.
- On the contrary, the top Neobanks in India offer a handful of products and services explicitly curated for a particular customer base.
- Since the smartphone penetration rate in India is 54% as of 2020, the number of non-tech-savvy people in the country is enormous.
- To them, the idea of a bank remains the traditional mode of banking from brick-and-mortar institutions recognised 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 Neobanks seems pretty bleak.
With the list of Neobanks in India increasing, it is observed that Neobanks have a bright future in the country.
However, to defeat the traditional banking system, the Neobanks have to introduce policies, products, and services that cater to wider audiences and not predominantly the youth of India.
FAQs on Neobanks in India
Is Neobanking in India a new concept?
Compared to the traditional banking system, Neobanking in India is a new concept that has been around for only about a decade.
What is Neo Banking in India?
A Neobank is a digital or programmed bank with no office or branch as it is an entirely online system. Neo banking is a comprehensive collection of financial service providers targetting tech-based customers.
What 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 idea will 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.
Is Neobank legal in India?
Neobanks and utmost of their product immolations aren't directly regulated in India. Still, they're subject to circular principles (through their hookups with regulated facts) to ensure their creation complies with nonsupervisory morals.
Are there any Neobanks in India?
There are more than 12 Neo banks in India, including Jupiter, Fi Money, Razor Pay, Open Money, InstaPay, and many more.
Which is the best Neobank in India?
The best Neobank in India is Kotak811, an entirely digital, in-your-phone bank that you can install. Other Neo Banks are Fi Money, Open Money, RazorpayX, Niyo, etc.