A Study on Neobanks in India: A New Era of Digital Banking

Abstract Banking System in India has experienced remarkable changes in terms of marketplace and competitiveness, transformed by largely driven technological and digital advancements. Even the fintech integration has led to provide customized and fingertip solutions to the customers. Recent innovative strategies used by fintech companies is neo banking. Neobanks are branchless ,100% online financial institutions, that prioritise quickness, innovation, and customer centric services. Unlike traditional banks, which have a large physical presence process, neo banks function independently and often collaborate with fintech firms to leverage advanced technologies like machine learning, artificial intelligence and blockchain. Neo banks have revolutionized the banking industry by reducing the gap between the services provided by traditional banks and the growing demands of customers in the digital era. In India these neo banks are still on inception stage. Factors like good digital acceptance rate, cost effectiveness, integration with fintech companies, rising usage of smart phones, rise in number of collaborations with traditional banks can provide a positive vibe for adoption of neo banking in India over the coming years. On the other hand, challenges like cyber security issues and cyber threats, absence of brand recognition, lack of customer loyalty, regulatory challenges etc may pose threat for its adoption. This research seeks to explore the scope of neo banks in India, evaluating their strengths, weaknesses, opportunities and challenges (SWOT) and forecasts their possible incorporation of neo banks in Indian future banking landscape.