Neo-Banking: The Future Of India's Branchless Banking

Neo-Bank is a digital bank without having any physical branch network carried out business entirely through online mode.

- 

Neo-Banks can be called Fintech firms that provide digital and mobile-first financial solutions payments and money transfers, money lending and more. These banks don't have a bank license of their own but count on bank partners to provide bank licensed services.

As the financial landscape is shifting towards customer experience and satisfaction, a gap has developed from what the traditional banks offer to what customers expect. And, Neo-Banks are making an attempt to fill that gap by offering higher interest rates and lower fees.

Business perspective:

• The Cost of operations and management gets reduced.

• Customer demands are met with an enhanced customer experience.

• Additional resources get invested in launching new products and in expansion to different geographies. This also helps facilitate doorstep delivery of essential banking services to rural India.

Customer perspective:

• Financial transactions become easy and convenient to perform from any location at any given time.

• With a greater reach and equal opportunities for all the people, everyone gets to avail all the banking facilities.

• Standing in queues with a token in hand is a thing of the past and now services are available at the click of a button.

The Features of a Neo-Bank:

An account with a neo-bank can be opened in less than 10 minutes with minimum paperwork, and will get a virtual debit card for use immediately. Additionally, access to global investment opportunities, easy international student banking and low-cost global spending etc are immediate services of a neo bank. The key features are: