Last Updated on March 10, 2023 by asifa
Banks and financial institutions carry forward the circulation of funds in the country. To put it in simpler words, these perennial bodies form the bedrock of the economic structure, radiating liquidity and exchange within the periphery.
The growth of technology and extensive access to the internet and WiFi has enabled the provision of neobank in India. Neobanks, better understood as online bank, virtual bank, digital bank or mobile-only bank, functions online, with no physical branches, unlike the traditional banking way.
Indexed below is the list of neobank in India, ranked as per the service, performance and trust.
- Fi Money
- Kotak 811
- North Loop
- YONO SBI
A Digitally Fuelled Platform for Banking in India
Neobanks is a vividly adopted means of banking, endorsed and initiated by the financial associations. Similar to that of the traditional bank branches, these work directly on digital channels, like mobile applications (compatible for both Android and iOS) and web portals.
The upgradation of artificial intelligence has instigated this tech-based banking system to disseminate in every nook and corner. With no chaos or negligence, neobanks have emerged as the people’s choice, offering an assemblage of customised services within a single platform.
Unlike traditional banking, neobank in India have predominantly grown amongst the masses by optimally using the artificial intelligence and technology for an absolute virtual banking experience.
The highlighting merit of traditional banks which can undermine the trace of neobanks is the inability of the latter to perform live and physical interaction with the customers, which the former successfully delivers.
Despite the demerit of contactless delivery of services, mobile-only banking imparts an effective chain of network that delineates improved services and customer satisfaction consistently.
Future of Neobanks in India
Despite net banking in India is a newer trail, the intensity of endorsement the setup received was commendable. In addition to the initiatives taken forth by the financial corporations and businesses, people in India from all walks of life are involved in making frequent digital transactions, especially after 2018.
Experts claim that (after conducting analysis and surveys) it is believed that virtual banking in India will reach a substantial altitude as the future of finance and banking. Despite being a newer concept, it has been widely accepted. One of the evident reasons for its popularity is the intent of several companies, e-commerce firms and merchandises to initiate digital banking for transactional purposes. This has persuaded many to choose neobank services on the contrary.
Neobanks over Traditional Banks
Regardless of the late arrival of neobank in India, that is around 2013, which introduced InstaPay and RazorpayX, it steadily proved its dominance over the Indian market by 2018.
The growth was witnessed in the whopping statistics which stated that by 2018, around 7.7 million Indians prefer online banking over the traditional banking framework. This data got tripled by 2020, the pre-pandemic period.
The footprints of online banking users have widened and augmented at an impressive level. Not just bigger institutions/ organisations or multinationals have promoted digital banking but smaller outlets have also come forward with a similar gesture to wholeheartedly procure the digitalised India economy.
With the advent of the unprecedented COVID-19 crisis, organisations, public services and educational institutions chose online banking to encourage contactless payment and curb the spread.
Regulations Laid Out in India
Neobank in India has evolved as a positive aid for financial institutions, banks and businesses from small to medium-sized. It is because with mobile-only banking, the outlets have been capable to dish out their services directly to their customers with just a few clicks.
However, the policies and constraints ruled by the Reserve Bank of India, the regulatory body is followed, which neither agrees or puts down the cent percent digitalisation of banks in India.
Likewise, earlier in 2018, the governing body discarded all variants of cryptocurrency justifying it a threat and breach in security norms. With the same connotation, the RBI has also not sanctioned transactions in digital currency wholly.
Later on in the year 2019, RBI marshaled a ray of hope for the aspiring fintech corporations by setting a robust framework for evaluating the innovations presented by them in an extensive way.
The Final Verdict
The neobank in India has spread its roots in the Indian economic landscape at a tremendous scale. Online banking has proved its predominance by offering the fastest, safest netbanking options which includes: history of transactions/ tracker, ultra convenient means of making and accepting payments and most importantly a thoughtful way to manage expenses by presenting a detailed report of expenses and payouts.
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