What are neo banks and what services do they offer?

Let us understand the functioning of neo banks in detail.

1. Neo banks operate exclusively online and do not have physical branches.

2. They offer all banking services, including savings accounts, digital wallets, payments, and loans, through mobile apps or Web platforms.

3. They leverage artificial intelligence and data analytics to offer personalised financial products and services.

4. Many neo banks offer services with nil or negligible fees, such as zero maintenance charges, free fund transfers, and low-cost or free debit cards.

5. These are primarily targeted at tech-savvy millennials and Gen Z consumers, who prefer digital-first, frictionless banking.

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.