The same Business Banking is made more intelligent and digitally through Neobanks which are Fintech companies that operate solely digitally or via mobile apps. Simply Neobanks are digital banks as they do not have any physical branches. Neo banks are supporting their customers through 100% digital platforms. NeoBanks cater their services to more retail customers and medium and small businesses which Traditional Banks generally underserve.
These banks are yet to be recognized by the RBI. Due to the absence, of enabling regulations NeoBanks cannot accept deposits or offer lending products in their books as everything has some pros and cons so, NeoBanks also have some pros and cons.
Pros of NeoBanks
NeoBanks are convenient to the majority of customers as it operates via digital platforms Products of NeoBanks are generally inexpensive with no monthly maintenance fees NeoBanks allow customers to open accounts quickly and process requests rapidly.
Cons of NeoBanks
Since NeoBanks don’t have physical branches it is very difficult to build trust, RBI doesn’t yet recognize NeoBanks such officially customers may not have any legal resources. NeoBanks generally offer fewer services than Traditional Banks.
Some NeoBanks Are
Jupiter
Fi Money
Niyo Money
Ocare Neo
In short, NeoBanks have a bright future for banking services. I will cover more about Fintech in another article. Till then share this article with your friends and family who don’t know about fintech. Comment if I miss anything 😛
