Top Neobanks in India
Neo banks do not have physical branches; they only operate online. Neo banks partner with traditional banks. These days neo banks are gaining popularity across India
Neobanks specialize in providing high-quality online banking services with a better online banking experience for their users
Today we have a list of the best top neo banks that are operating in India
What are Neo banks
Neo banks operate only online and function like banks. They provide many services and have only a web and mobile presence.
Their digital services are better than most of govt traditional banks as they specialize in finance and technology
Neobanks provides such services using the latest web and mobile technologies
They partner with traditional banks and serve online only; they do not have physical branches like traditional banks
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Benefits of using Neo banks services
- Services are available 24×7
- They have low operational costs as they do not have physical branches. Neo banks have minimal regulation and credit risk.
- Traditional banks have maintenance costs, but Neo banks do not have a maintenance cost
- Quick and easy account creation in Neo banks as makers of neo banks are masters in fintech, making the app user-friendly and smooth, giving users a good experience. From account opening to money lending and transferring can be done quickly through the app only.
Neo Bank Disadvantages
Security
Neo banks are 100% digital, so they are prone to cyberattacks, security breaches, and other online threats
No branches
Neo banks have no physical branches; they operate online only, so you can not contact their staff in person to solve your query or problem.
So we can say there is a lack of human touch.
Limited service
Neo banks do not offer all the services that traditional bank offer. In addition, unlike conventional banks, Neo bank does not have a bank license from RBI.
How Neo bank is different from traditional banks
We have various traditional banks in India, some of which are 100 years old.
Traditional banks are private as well as government. Some conventional banks are PNB, SBI, ICICI, HDFC, AXIS, and several others
All these traditional banks have a physical presence, like branches or ATMs. Additionally, traditional bank also provides online banking services
- Traditional banks are significant and have deep pockets; they have a large number of funds at their disposal and are large-cap companies, whereas neo banks are still in their beginner’s faze
- Neo bank has a small customer base, mainly from metro cities, whereas traditional banks have a large customer base
- Neo banks are fintech, mainly in business, because of their excellent grip over technology. they have cutting-edge technology that traditional banks lack; additionally neo, banks apps have innovative features which give them an advantage over conventional banks
- Neo banks customers are mainly from metro cities, especially new generations people like millennials or Genz who want new age features in their banking system, whereas older generation or people from tier 3 cities or villagers prefer traditional banks because they like features like relationship manager or personal banking
Neo banks vs. digital banks
Neo banks only operate online; they do not have offline branches, whereas digital banks generally work as online subsidiaries of financial or banking organization
Neo banks vs. payments banks
Payment banks are formed under RBI guidelines and provide most baking services except loans and credit cards. Payments banks are primarily free from credit risk or NPAs
Whereas neo banks can provide both services like loans or credit cards, and they work in partnership with traditional banks
Top Neo Bank in India in 2023
1. Niyo
Niyo, one of India’s leading fintech companies, offers various services. Vinay Bagri founded Niyo in 2016; its motto is to make banking smarter, simpler, and safer.
- Niyo x- Niyo X is the app from Niyo where you can open a saving account and manage your wealth in the same app
- Niyo Global- Niyo global is the best bank account if you are an international traveler; it fulfills your international banking needs. You get up to 5% interest on your savings, there is zero markup fee, and free lounge access comes with this account
- Niyo Bharat- Niyo Bharat is an open banking platform for salaried employees and businesses. You get a lifetime zero balance prepaid card if you are a blue-collar employee. They offer one of the best-prepaid cards
- Niyo Money- Niyo money app is for your investing needs; you can grow your wealth using this app. Buying stocks and mutual funds are made easy. Also, there is no commission on buying these financial products on Niyo money
2. Fi Money
Fi money is another neo bank; it has a total money management app where you get zero balance savings bank account, zero fees mutual funds purchase.
You also connect your existing traditional bank account to Fi money and check the combined balance and transaction history.
Fi Money is partnered with a federal bank and visa. Just like any conventional bank, you get insurance of your money in a savings bank account for up to ₹5 lakh from RBI
They also have accounts with special features for salaried people and students
3. Jupiter
Jupiter is another neo bank that has partnered with the federal bank. Creating a bank account on Jupiter is very easy.
Jupiter app also provides actionable insights in their app like real-time analytics and insights into your spending
You can put your saving to auto-pilot mode using their app. Several other unique features help in managing your wealth from the app
There is a reward system in the Jupiter neo bank app where you can earn rewards of 1% on debit card and UPI purchases
Saving accounts are zero balance with no hidden fees
4. Freo
Freo is another neo-bank that provides digital banking services. They have many products under Freo
Freo save – you can open a savings account and get up to a 7% interest rate. It’s a zero balance saving account that you can also get in case of need
Moneytap– it’s an app under Freo where you can get a lifetime credit line of up to ₹500,000. You can use as much as you want and pay only for what you use
Freo pay – it’s another credit, mobile payment, and pay later app for your daily needs. You get up to ₹6000 as credit which you can play later without any interest within 30 days
Freo credit – this app helps in checking and improving your credit score
5. OCARE Neo
OCARE Neo is the only neo bank with a health QR code on its card. This card can give you and your family a health report quickly
OCARE Neo provides a solution to family healthcare by helping save funds for it. You can access all the health insurance from their dashboard
It’s banking for health; it takes care of your banking and healthcare needs.
It provides various features that help in focusing on the user’s health. OCARE Neo is a digital health bank for your healthcare and financial needs
It offers a free saving account with no minimum balance requirement.
Opening this account, you get e-insurance, a health card, and a digital account which you can access from the same dashboard
6. open
Open is well recognized and trusted banking solution among businesses. However, it focuses more on business.
It is a bank that focuses on business banking platforms for startups and small and medium-sized enterprises
All the features that a business or startup needs come with this account
Open is built to meet the needs of small businesses; it is best when you use it with your existing account
When you open a business account with this neo bank, You get a visa business card with banking, expense management, accounting, payment, and taxes in one place
25,00,000 businesses trust open in India; it’s on the list of India’s 100 unicorn
7. Mahila Money
Mahila money is a digital banking community for women. Mahila is a Hindi word for women. they deal in saving accounts, loans, investments, and insurance, especially for women
It’s a financial platform exclusively for women. There is a women-only community on this platform which you can join and get business tips. You can also join free live events
8. FamPay
Fampay is a credit card for students or teens. You can get Famcard if you are a teen and can make payments offline or online with just a tap using this card.
It’s super safe and has no hidden fees. You also get rewards in the form of fam coins when you use this famcard.
Famcard is a co-branded card. Fam pay has partnered with IDFC first bank to issue this card
Famcard is a visa card and is backed by IDFC first bank. There are over 5 million teenagers who use Famcard
9. Finin
Finin is another neo bank where you can save, invest and manage your money in a simple, smart, and secure way using a Finin saving account.
Finin app has smart features where you can add all your existing bank accounts and get AI-driven insights into your spending behavior. You can
Track all your spending in one place
10. InstantPay
Instantpay is neo banking solution for SMEs, corporates, and individuals. It was founded in 2013 with a vision to drive financial services to the larger India.
Instant pay is partnered with ICICI bank to bring the best of both these financial platforms to its customers
Instantpay provides various services
11. Kotak 811
Kotak 811 is also a neo-banking solution that is from Kotak Mahindra bank. You can open an account from the app itself no need to go to the bank
Account opening is instant, and no minimum balance is required in a savings bank account