Neobanks, which function solely online and do not have branches or rely on legacy rear systems,
have sprung onto the worldwide scene in recent years. Although neobanks targeting retail clients
frequently make headlines, their impact may be seen in the $850 billion worth SMB banking
market, where financial companies have failed to present adequate service.
However, according to RBI regulations, a Neobank is not a banking institution. In reality,
neither of the services mentioned pose as banks, and it is a set of financial services and apps.
Because of the absence of infrastructure, they are incapable of holding your funds. In some
sense, these Neobanks employ existing banking institutions as their capital. Your Neobank
portfolio is managed and monitored by the RBI’s approved financial institutions.
Neobanks in India
There are already 10 Neo Banks in existence in India. And there will be a few more. Neo Banks
in India have managed to raise considerable funding. In 2019, Indian Neo Banks earned more
than USD 90 million. In comparison to traditional financial institutions, neo banks in India use a
distinct and less aggressive marketing style to promote their products. The top five neobanks are:
1. Jupiter – Jitendra Gupta is one of the organization’s founders. The company was founded
in 2019 and is currently doing well. Jupiter is a well-known neobank in India. Jupiter is a
virtual financial institution that attempts to deliver financial services that are relevant to
today’s digital customers. Jitendra Gupta’s fintech business Jupiter allows users to open
accounts in a variety of nations.
2. FamPay – It is the nation’s first neobanking application built just for teens. While their
guardians are there, teenagers can access this neobank to transfer money. IDFC First
Bank’s FamCard is a secure, numberless card. FamPay enables consumers to make
prompt payments across several platforms. FamPay’s mission is to enable kids to start
monetary autonomy at an early age and to assist them in making good financial choices.
The neobank now has around two million customers.
3. InstantPay – It is the country’s biggest neobanking service. It offers a wide variety of
financial services to individuals and organizations of all kinds. According to statistics,
Neobank handles over one million transactions every day. It is most recognized for its
extensive financial services, which include cash deposits, rapid account activation,
customer care, and real-time money tracking. Customers can pay via the InstantPay site
or the InstantPay phone app. Both systems are quite easy to use and understand.
4. Razorpay – It is the first neobank that joined the Unicorn club. It was launched in 2014 by
Shashank Kumar and Harshil Mathur and has since helped 10,000 enterprises. The best
aspect would be that the current accounts include benefits such as debit cards, account
statements, and cheque books. RBL Bank is Razorpay’s bank partner.
5. Open – Open neobank assists companies in eliminating the inconveniences associated
with creating a bank account. Established Open in 2017. Open provides financial
services, transactions, and financial accounting services to startup businesses and small
enterprises. It also provides a credit card.
Conclusion
With practically every service accessible digitally, the internet youth, as well as the older
generations, are actively embracing this transformation. The banking system, which is among the
most crucial aspects of our lives, is now accessible without any need for physical bank branches,
making life much easier.