[1][2][3] The term neobank has been in use since at least 2016[1] to describe fintech-based financial providers that were challenging traditional banks.
[7] In India, a neobank is a class of digital-only or online bank that operates without physical branch locations.
Unlike in Europe, the regulatory environment in India is complex, with stringent regulations that govern banking and financial services.
They focus on providing a seamless and user-friendly digital banking experience to a younger audience, with features like instant account setup, easy money transfers, and expense tracking.
Some neobanks also target specific customer segments, such as millennials, and offer features like budgeting tools and investment options to that demographic.