Neobanks are digital-only banking platforms that operate solely online. Simply put, they do not have a physical presence. For customers, transactions in traditional banks could require a lot of time and effort. Neobanks promise a seamless online experience by bringing an experiential, digital layer on top of traditional banking. Due to their tech-driven nature, customers can create accounts by themselves and use their offerings hassle-free.
As the Reserve Bank of India (RBI) does not permit fully-digital banking establishments yet, neobanks in the country use partnerships with physical banks to deliver some of their key services.