Ceo Club
  • News & Update
  • Ceo Story
  • Ceo Interview
  • About Us
  • Contact Us
  • Video Interview
  • Press Release
No Result
View All Result
Ceo Club
No Result
View All Result
Home News & Update

The Rise of Neo Banking In India 2021

CC Teams by CC Teams
July 12, 2021
in News & Update
1
Neo Banking In India
Share on FacebookShare on Twitter

As digital attains new high, the idea of banking without a physical presence is gaining customers. Internationally, many big banks have started reducing their physical presence. In India too, many banks have modernized themselves with new-age Neo Banks for a unified customer gaining and product offering.

What is Neo Bank?

Neo Banks are 100% digital in nature. They operate completely online without any physical presence. They offer multiple monetary services for an account. Neo Banks partner with the traditional banks and help them acquire customers in the most unified manner.

How does it work?

Being completely digital, the focus is on key areas depending on their corporations with the banks. The majority of them operate in the five segments.

1) Battered customer segment. Neo banks are skilled in easier customer gaining- customers include tech knowledge millennials, SME and low-ticket salary class, which are not the focus areas of heritage banks

2) Lesser costs, due to lack of physical presence and low capital investment

3) Lesser charges and easier customer gaining

4) ‘Born in tech platform’

5) Dedicated banking solutions –with a whole collection of services including payments, receivables, budget, and spend management.

Internationally, the Neo Banks also operate in, credit cards, forex cards and payments, cash flow management and business banking services, expense management, and loan products.

Neo Banking In India

Neo Banks in India

There are many Neo Banks working in India currently and a few more are in the pipeline. Neo Banks in India have also managed to raise hefty funds. In 2019 alone, Indian Neo Banks raised more than USD 90 mn. Neo banks in India are taking a distinguished and less hostile approach in the position they are offering.

Challenges for Neo Banks in India

While Neo Banks are scaling up their presence very antagonistically, there are delays. The major interval is the tacky customers and lack of guidelines. Reserve Bank of India (RBI) has not permitted a 100% digital bank model in India. This will keep the terminus of Neo Banks blurred. They don’t know whether they will be allowed to lend on their books and raise deposits on their credibility as an individual bank. Till then, they will have no other substitute but to continue associating with the traditional banks.

On the consumer side, Neo Banks will attract many millennials, the encounter will remain with the rural market where there is a vast population. Despite offering ease of access and better service, the majority of the rural population will prefer to visit physical banks and look for assistance from personal relationship managers. But with many more banks in the pipeline in this sector and supervisor singenuity in this space may change the picture over the next 2-3 years. Another business encounter that they can face is to find a stream of income. Low UPI transfer charges, interchange fees, and payments may not be the main source of income.

Neo Banks Internationally

Internationally the Neo Bank segment is aera old. The international Neo-bank marketplace was worth USD 18.6 billion in 2018 and is expected to fast-track at a combined annual growth rate of around 50% between 2021 and 2026, generating approx. $394.6 billion by 2026. The Neo Banking marketplace is large in the UK, with 15 authorize grants since 2005. 9% of British adults have a Neo Bank account. Neobanks have nearly increased their customer base in the past year, from 20 million customers in 2019 to almost 50 million in 2021.

Neo Banks internationally are well-known for faster customer gaining and consumer appeal vs heritage banks. They offer wider products as internationally Neo Banks are allowed to take deposits and lend on their own books. However, Success and competitive agility remain pressure points for Neo Banks globally.

Read More: Vaibhav Kakkar Journey from Content Writer to An Entrepreneur

neo bank

About the Author: Ravi Gupta is the Founder & CEO of SafexPay having more than 10years of experience in Payment Gateway, Digital wallet, Acquiring & E-commerce industries. SafexPay is an industry leader in payment gateway solutions, white-label payment gateways, white-label Neo-banking Platform, white-label QR Code management tool, Payout API, and Customized payment Solutions.

 

Tags: Neo Banking In India
ShareTweetPin
Previous Post

Vaibhav Kakkar Journey from Content Writer to An Entrepreneur

Next Post

CoinDCX Founders and their contribution to Indian Crypto

Related Posts

TrichoGene
News & Update

TrichoGene-Minoxidil Response Test (MRT) will save you time and money for hair loss treatment

January 30, 2023
Manish Sharma
News & Update

Yamasha : The New Definition of Profit

July 5, 2022
boss Campbell Wilson
News & Update

Tatas pick Scoot boss Campbell Wilson as Air India CEO

May 13, 2022
Aditya Birla
News & Update

Aditya Birla Capital Appoints Vishakha Mulye As CEO

April 24, 2022
Abhinav Khare
News & Update

Asianet CEO Abhinav Khare Steps Down From the position

April 8, 2021
John Krafcik
News & Update

John Krafcik Stepping Down From The Position of CEO of Google’s Self-driven Cars

April 5, 2021
Next Post
CoinDCX

CoinDCX Founders and their contribution to Indian Crypto

Comments 1

  1. Pingback: CoinDCX Founders and their contribution to Indian crypto

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe Us

  • Successful

    Qualities Of An Successful Person Which Everyone Needs To Follow

    0 shares
    Share 0 Tweet 0
  • Quick Interview with Venkatesh C.R CEO of Dot Com Infoway

    0 shares
    Share 0 Tweet 0
  • From Job to Freelance to CEO of a Digital Agency

    0 shares
    Share 0 Tweet 0
  • Alphabet CEO Sundar Pichai Received Compensation Of $281 Million

    0 shares
    Share 0 Tweet 0
  • From a Common Engineer to Humble Entrepreneur, This is DP Vishwakarma’s Story

    0 shares
    Share 0 Tweet 0
MediWheel

The Start-Up That’s Making Healthcare More Accessible To Corporate India

February 15, 2023
TrichoGene

TrichoGene-Minoxidil Response Test (MRT) will save you time and money for hair loss treatment

January 30, 2023
क Se Kulcha

“क Se Kulcha”- Changing The Face Of Street Side Indian Food

November 15, 2022
ADVERTISEMENT
ADVERTISEMENT
Ceo Club

Ceoclub.in is a website dedicated to all the visitors who aspire to be a leader tomorrow in the corporate world. Bringing out news, tips, strategy, motivation and success stories of CEO will drive you to move ahead in the right direction of career.

Mail : media@ceoclub.in

Phone : +91-9034408083

Follow us on social media:

About Company

  • About Us
  • Careers
  • Privacy Policy


Nationa News

Reach us

  • Advertise With Us
  • Contact Us
  • Guest Column
  • Publish Your Interview
  • Share Your Story

Recent News

MediWheel

The Start-Up That’s Making Healthcare More Accessible To Corporate India

February 15, 2023
TrichoGene

TrichoGene-Minoxidil Response Test (MRT) will save you time and money for hair loss treatment

January 30, 2023
  • About Us
  • Advertise With Us
  • Careers
  • Guest Column
  • Contact Us
  • Publish Your Interview
  • Share Your Story

© 2020 CEO Club

No Result
View All Result
  • News & Update
  • Ceo Story
  • Ceo Interview
  • About Us
  • Contact Us
  • Video Interview
  • Press Release

© 2020 CEO Club