Page 39 - Banking Finance February 2023

ARTICLE

NEO-BANKING:

THE FUTURE OF

INDIA'S

BRANCHLESS

BANKING

eo-Bank is a digital bank without having any Business perspective:
physical branch network carried out business
The Cost of operations and management gets reduced.
entirely through online mode. Neo-Banks can be
Customer demands are met with an enhanced customer
N called Fintech firms that provide digital and
experience.
mobile-first financial solutions payments and money
transfers, money lending and more. These banks don't have Additional resources get invested in launching new
a bank license of their own but count on bank partners to products and in expansion to different geographies. This
provide bank licensed services. also helps facilitate doorstep delivery of essential banking
services to rural India.
As the financial landscape is shifting towards customer
experience and satisfaction, a gap has developed from what Customer perspective:
the traditional banks offer to what customers expect. And,
Financial transactions become easy and convenient to
Neo-Banks are making an attempt to fill that gap by offering
perform from any location at any given time.
higher interest rates and lower fees.
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
About the author the past and now services are available at the click of a

button.
Cherukuri Balakrishna
Senior Manager
Union Bank of India The Features of a Neo-Bank:
Staff College Bengaluru
An account with a neo-bank can be opened in less than 10

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