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Top 10 Best NeoBanks In India 2022

Top 10 Best NeoBanks In India 2022

Can you conceive a bank that only exists in your mind? As of now, yes! But what about a few decades? Barely!

According to Zion Market Research, the global neobank market was valued at $18.6 billion in 2018 and is predicted to increase at 46.5 percent from 2019 and 2026, producing $ 394.6 billion by 2026!

India’s market, which is emerging as a fintech and banking hub, isn’t far behind.

In India, neobanks are gaining traction.

It’s also inspiring to see all of the creative ideas and solutions they come up with.

Our current banking system is not the future. However, unlike traditional banks, these Neobanks are easy to operate, safe, and much more cost-effective.

You can try your hand at these top Indian Neobanks. I haven’t included all Neobanks here – I’ve curated only those with a decent userbase and are functional.

No, Paytm Payments Bank is not among them.

what is neobank? all you need to know | personal news – india tv

Over the past few years, neobanks, which operate digitally-only without physical branches or relying on legacy back-ends, have exploded onto the global scene. Although neobanks focusing on retail customers often make news, their effect might be in the $850 billion annual SMB banking category, where banking institutions have failed to provide enough service.

Neobanks have indeed been capable of meeting SMBs far more effectively than legacy players since they are based on the latest technology stack and lack an expensive number of physical branches. Rapid registration, multitiered accounts, and connectivity with third-party tools like bookkeeping and accounting software are just a few of neobank’s key features.

The Global SMB Neobanks Report examines the causes fueling an uptick in neobank in the SMB segment. The techniques these startups are employing to win a share of the market in this lucrative finance sector. First, we look at the conditions that made it possible for neobanks to provide their services to SMBs and the obstacles incumbents have experienced in providing service to these enterprises. Next discussed are the operational benefits that have allowed neobanks to face adversity that their peers have faced. Lastly, we look at the most critical neobank economies around the globe and the actors at the forefront of efforts in various area.

As we go into the list, let’s look at what Neobanks are.

In India, what is neobanking?

Neobanking is a cutting-edge banking strategy that reshapes the banking and Fintech industries.

A Neobank is a digital-only bank that does not have a physical location. No requirement of Cash deposit, no documentation, and personal.

However, as per RBI rules, a Neobank isn’t a bank. In truth, none of the services listed below pretend to be a bank. It’s a collection of financial apps and services. They are unable to keep your funds due to a lack of infrastructure.

These Neobanks, in a sense, use traditional banks as their capital. Your Neobank account is maintained and controlled by the RBI’s financial institutions licensed as banks. For example, HDFC and ICICI Bank.

understanding neo banking in india – probe42-probe information services

All these Neobanks do is make their customers’ problems easier. You won’t have to worry about paperwork. Assistance is faster than traditional banks; their application is much more current, and you don’t have to pay extra costs.

In India, Neobanks are digital-only banks with no physical offices that provide a wide range of services not available through a competitor and regular banking.

They use machine learning and artificial intelligence to provide end-users with personalized financial services while lowering operating costs.

In addition to these, there are many other benefits to neobanks.

For example, creating new experiences from transactions can help banks become more customer-centric. The key to keeping customers from switching to competitors lies in converting transactions into personalized lifestyle experiences.

Neo banks have made a tectonic shift in the digital banking landscape by bridging the gap between traditional banking services and evolving customer expectations. Neo banks offer a high level of personalization and flexibility to consumers.

What is the Neo Bank system?

The focus of Neo Banks depends on the banks’ partnership with them since they are fully digital. There are five segments in which Neo Banks operates.

  1. The first segment is the targeted customer segment. New banks are adept at acquiring customers more easily – most neobanks target millennials, small and medium businesses, and low-ticket salaried customers, which legacy banks do not focus on.
  2. There are no physical branches, so its costs are lower, and its capital investment is insufficient.
  3. Its fees are lower, and customer acquisition is more accessible.
  4. The tech platform used is “Born in the cloud.” 
  5. The banking solution for Specialised businesses- with a whole array of services including budget receivables, payments, and spend management.
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Credit cards, FX cards, cash flow management, payments and business banking services, expense management, and personal loans are all areas where Neo Banks compete globally.

everything you need to know about neobank

India’s Neo Banks

In India, there are now ten Neo Banks in operation. And there are a few more on the way. In India, Neo Banks have also been able to raise significant capital. Indian Neo Banks acquired more often than USD 90 million in 2019. Compared to traditional banks, neo banks in India are using a unique and less combative strategy to market their offerings.

1. Jupiter

One of the company’s founders is Jitendra Gupta. The business was established in 2019 and is still running great. Jupiter is a prominent neobank in India. Jupiter is a bank that aims to provide banking services that stay up with today’s digital clientele. Jupiter, a fintech startup created by Jitendra Gupta, allows customers to open bank accounts in many countries.

indian neobank jupiter raises $86 million to launch lending and wealth management services | techcrunch

2. FamPay

It is the first neobanking app designed just for teenagers in the country. Teens can use this neobank to make payments while their parents are present. FamCard is a safe, numberless card from IDFC First Bank.

FamPay allows users to make quick payments on various platforms, including Netflix, Swiggy, Amazon, Zomato, and others.

FamPay aims to empower teens to begin financial independence at a young age and help them make sound financial and spending decisions. Currently, the neobank has over 2 million users.

Here’s what Kush Taneja, Founder of FamPay, had to say about changing the underserved teenage market during our conversation!

“FamPay is India’s first neo-bank for teenagers, tapping into a fresh new user niche.” We want to help teens become financially self-sufficient and literate. Our products, the FamPay App, and pre-paid card make it simple for kids to make online and offline purchases.”

“Our flagship product, the FamCard, India’s first of countless cards, is by far the most rewarding, elegant, and secure teen card available.” Teens are waiting to have their FamCards since they are fashionable and individualized, and parents respect it because of its unique encryption techniques.”

“With about 40% of India’s population under the age of 18, millions of new teens will begin using their smartphone every year, and FamPay hopes to be their go-to brand.” We are developing an early engagement with the prospective adults many businesses want to access by interacting with the young, making FamPay the doorway for brands to target GenZ.”

FamPay’s Founder, Kush Taneja

fampay explained to parents | all about india's first neobank for teens - youtube

Pricing: The actual FamCard Me costs 999 dollars, the FamCard costs 499 dollars. Prices may change, so keep an eye out for deals and discounts. The virtual FamCard, on either hand, is entirely free!

3. InstantPay

According to reports, InstantPay is the nation’s largest neobanking platform. It provides a range of financial services for people and businesses of all sizes. Neobank processes over a million payments every day, according to data.

It is best known for its comprehensive banking services, which include: 

  • Instant account activation 
  • Real-time money tracking 
  • Cash deposit
  • Customer assistance is available 24 hours a day, seven days a week, 365 days a year

Customers can use the InstantPay website or download the InstantPay mobile app. Both platforms are incredibly user-friendly and intuitive.

Businesses may quickly perform financial transactions by integrating InstantPay’s API with their accounting systems. Companies can use the API to scale from zero to a million u.s automatically—dollars per day.

InstantPay has worked with several well-known Indian institutions, including ICICI Bank, Axis Bank, IndusInd Bank, and Yes Bank, to provide seamless financial services.

  • Individuals may use InstantPay to open a digital account and use services like as

There is no requirement for a minimum balance.

Services for cash withdrawal

Set spending restrictions, keep track of your finances, create in-store payments, and make significant investments.

  • Small and medium-sized enterprises may create bank accounts and use various services, including customized versions with debit cards and checkbooks.
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Receiving and sending money to suppliers, people, and other businesses Using an in-built CRM system, onboard and interact with customers, vendors, and workers Applying for business loans Managing company costs and making investments. InstantPay also provides the InstantPay Digi Kendra service, which allows you to conduct important banking transactions, obtain insurance, book travel, and much more while on the go.

instantpay - india's largest neo banking platform

4. RazorpayX

The fintech unicorn RazorPay’s neobanking offering.

RazorpayX, based in Bangalore, was launched in 2014 by Harshil Mathur and Shashank Kumar. Razorpay began as an API and dashboard payouts platform for merchants, becoming a disruptor in the realm of digital payments. It is now a one-stop shop for enterprises impacting and driving payment ecosystems.

RazorpayX is a software that assists businesses in managing their money, automating payroll, and scheduling payments and invoices. In addition, it increases credit limits for corporate spending and makes spending tracking and administration easier.

Tax payments can be automated, immediate loans without security may be obtained, financial flows can be managed, and accounting can be simplified.

RazorPay, its parent business, has raised a total of $366.6 million in capital from over 30 investors throughout eight rounds. Salesforce Ventures, Matrix Partners India, GIC, Combinator, Ribbit Capital, and Sequoia Capital India are vital investors.

razorpayx launches payout links, automates money transfers, without bank details

5. Fi. (Fi. Money)

Fi was the very first Neobank that piqued my curiosity. Before its inception, we had local digital banks or pilot initiatives that failed due to various factors, including poor marketing.

IDFC Niyo is the finest example. They had a terrific product, but they didn’t know how to promote it to the proper people.

On the other hand, Fi did exactly what needed to be done — Make a special effort to reach out to the millennial population and provide them with what they require. A free saver, benefits for saving money, excellent user experience, and no paperwork.

They also successfully communicated their message to the intended audience.

Federal Bank has teamed with Fi. This implies that when you establish a bank account with Fi, you’re also opening a Federal Bank account.

They have a superb user interface, and the Fi App appears to be well-designed. Unfortunately, it’s only accessible for Android smartphones right now. So far, there’s been a lot of activity, and the customers have liked it.

It’s simple to open a bank account. But, first, you must sign up for their waitlist, after which you will receive a Fi.nite code that you may use to set up an account on the Fi app.

In most circumstances, though, you will have immediate access to your Fi.nite code.

Fi helps build a zero balance bank account with the RBI ensuring up to 5 lakhs.

You may also review your previous transactions via the app. For example, see where you spend the most of your money and just how much you invest it.

You will receive a free VISA debit card. You may withdraw cash, do online transactions, utilize PayWave, and restrict it with a single click at any time.

NEFT, IMPS, and RTGS transfers are free of charge. In addition, every quarter, you will receive two complimentary checkbooks. There are also no foreign exchange fees.

If you’re acquainted with ICICI Bank’s iWish feature, Fi has a similar capability. You can set up FIT rules to save a certain quantity every time you make a transaction. You’re also rewarded for saving money.

There’s also a function known as Stash. Consider it a variable-rate fixed deposit. You can earn 5.1 percent interest on any amount you deposit at any time. In addition, you have access to chat assistance 24 hours a day, seven days a week. Fi is compatible with both Android and iOS devices.

Finally, Fi has the most incredible squad on its side. PayPal, Ex-Google, PhonePe, and Paytm staffers are among the people behind Fi.

fi - secure digital banking services in india

6. Akudo App

Akudo, which signifies “Peaceful Wealth,” is the country’s first learning-focused neobank for youth. The neobanking app appeals to a younger demographic and is currently trying to give youngsters economic freedom.

Teenagers can get a pre-paid card that they can use even while still being watched by their parents. In addition, the neobank lets families take control of their children’s expenditures to discourage spending.

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Moreover, giving appealing rewards in a gamified atmosphere stimulates young people to build a saving habit.

learning-first neobank for teenagers akudo raises pre-seed round from y combinator, others - edtechreview

7. Niyo

It was established in 2015 by Vinay Bagri Virender Bisht, a financial system and payments specialist, with the mission of “Making Banking Smarter, Safer, and Simpler.” Niyo offers a variety of banking services, including:

  • Niyo X – An effective app that provides users with savings options and assists them in managing their wealth without difficulty.
  • Niyo Money – Using Robo-advisory, Niyo Money assists customers in growing and managing their wealth.
  • Niyo Global – Customers who use Niyo Global may expect round-the-clock customer service as well as up to 5% interest on their money.
  • Niyo Bharat – Billed as an open banking platform, Niyo Bharat is an app that provides employees with salary cards.

niyo - india's leading fintech company

8. OcareNeo

One of the company’s founders is Dr. Neeraj Sheth.

The firm was established in 2015.

Dr. Neeraj Sheth founded it with the tagline “Your Digital Health Passport” to help keep an eye on their healthcare issues. OCareNeo helps them get started on their digital health journey by giving them quick access to private and family patient data, and also their financial data. The company offers a Digital QR code that records the owner’s medical record and payment data, a Digital Card, and a Digital Piggy Bank to pay medical bills and save for the future. OCareNeo also helps customers ensure their health by offering various safe and insurance products.

ocareneo - india's first health neo bank - home

9. Atlantis(Neo-bank)

Atlantis is a fintech company established in Singapore that focuses on helping consumers and small businesses in India and Southeast Asia.

Customers can spend, save, invest, and manage their complete financial life in one spot, thanks to the debut of Neo-Bank in India.

Customers can monitor their balances, simplify payments, and interact conveniently using this neobank’s current account, Smart, and savings account, Stash. Users can also earn incentives for purchases made on the app, whether they are for e-commerce, fitness, or personal care!

Here’s what Gaurav S, Founder & CEO of Atlantis, had to say about keeping banking “great!” when we spoke with him.

“At NEO, we’re creating a digital bank for the digital age.” Savings, credit, investments, commerce, loyalty, community, and other financial services for the digital generation.”

“Banking and FinTech services are in a state of disarray. People will manage their finances in one spot in 5-10 years. The FinTech industry, which started as a disruptive technology, is now maturing and entering a phase of fast re-bundling. The essence of the second-order impact is that it is multivariate.”

“We’re using technology to provide banking services that are aligned with people’s best interests.” Fintech’s future does not lie in the sale of additional financial goods. Instead, the client’s economic well-being is at the heart of Fintech’s future. Our goal with NEO is to help 10 million millennials attain financial independence in the coming decade.”

Atlantis CEO and Founder, Gaurav S

To intelligently automate a customer’s financials, the solution integrates the goods with an attractive UI and algorithms!

Neat!

atlantis: bank of the future

10. PayZello

Payzello is yet another neobank that is doing well in India. It’s a digital-only platform created with youth in mind.

Its goal is to create a new type of banking where people can debate, suggest, and comprehend financial details. Put another way, and it serves as an intelligence hub where people and businesses can learn new things, share advice, and help one another flourish.

The following are some of the facilities provided by the neobank:

  • Easy banking with high security features 
  • A virtual card that may be used to make online purchases (wherever Rupay is accepted)
  • Unicard may be used to swap between debit, credit, and foreign currency cards.
  • An international credit card may be used to make online purchases in other countries.
  • Establish spending limitations for each category to guarantee that money is spent wisely.

Payzello also has a complete cost management function that allows you to track your spending and investments while saving effectively.

Payzello provides the most refined and most efficient on-the-go financial experience that provides AI and APIs.

payzello | linkedin

Article Proofread & Published by Gauri Malhotra.

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