The Rise of NEO Banks

NEO Banks are basically Fintech Apps that have tied up with Noral Banks to make Banking more accessible to the general Public. They don't own their own RBI Banking License and are basically under the Wing of a Bigger Bank. But lately, there have been a lot of talks about how these NEO Banks are making things so much easier for the general public that people might not be using Traditional Old Banks anymore.

In India, we have Banks like HDFC Bank, and ICICI Bank who are well known and well established in the Indian Market but out of nowhere these NEO Banking Apps are taking the fight directly to them. I have a couple of Bank Accounts and also some NEO banking Apps and I have to say the whole process of getting your Account Open in like 10 minutes via Video Calling and getting all necessary documents like Cheque Book and Debit Card by Mail within the week is something I am definitely not used to. For example one of my Banks had issued a DEBIT CARD for me and it is still in Transit for the last 15 years and I am not even Kidding. So why wouldn't people switch to these NEO Banks as it's so easy to use and hassle-free as well.

Even though I have spoken so Good about NEO Banks there are certain aspects that could lead to their downfall and one of them is the fact that they are still under the Umbrella of a Bigger Traditional Bank which could at anytime pull away and leave them to dry. This is something of a huge risk for them and the sooner they branch out of their Umbrella the better it will get but at the same time, it will definitely be not easy to Branch out considering the RBI just doesn't give out banking Licenses to everyone. So yeah even though the NEO banks are a threat to traditional banks since the RBI is involved the Traditional Banks are not yet worried.