To make banking simple, convenient and meaningful, some financial technology (fintech) startups are launching neo-banks for retail customers in India.
These fintechs are partnering with traditional banks and offering better solutions by using technology such as artificial intelligence (AI) and machine learning (ML).
Initially, the neo-banks that were launched in India, including Open by Open Financial Technologies and RazorpayX, targeted only business customers.
Since the Reserve Bank of India (RBI) tightly regulates banking licences, neo-banks are providing services built on the offerings of a traditional bank. “For traditional banks, it is difficult to change their legacy technology for which they have already spent a lot.