Page 46 - Banking Finance May 2021

ARTICLE

NEO

BANK

N Neo bank is a kind of digital bank without any as traditional financial services. Neo bank provides

infrastructure that makes banking services cheap and easy
branches. Neo bank has no physical presence at
any location but provides services online i.e.
from their phone. It is also known as fintech company which
digital or mobile or through any other mode
online. Neo bank hasn't a banking license but provides offers various banking services from mobile, like opening of
deposit account, loan account, payments and other banking
services through trusted partners who have banking licenses. services without the burden of a physical network. Apart
Neo bank is a more agile version of traditional and old from it, Neo bank also does lead generation. RBI doesn't
fashioned banking which is more appealing to tech-savvy permit license to open 100% digital banks. Neo banks now
young generation. a day provides traditional banking services also. Neo banks
are complementing banks with better user interfaces and
Neo bank provides all types of banking services to the services.
consumer and small business needs of the consumers. At
present more than 5000 startups are providing new as well Neo banking started in India by many Indian startups Airtel
payment bank, Fino payment bank, India post payment
banks, Jio Payment bank, SBI YONO, Kotak 811 are some
About the author of the examples of Neo banks closest model in India.

Prabhat Singh Suman
Chief Manager Faculty Why Neo bank?
Union bank of Indian The population of India is approximately about 130 crore
Staff Training Center out of which more than 65 per cent are below the age of

46 | 2021 | MAY | BANKING FINANCE