{"id":2887,"date":"2021-03-19T15:57:22","date_gmt":"2021-03-19T10:27:22","guid":{"rendered":"https:\/\/rzpwp.blog\/?p=2887"},"modified":"2025-05-05T14:31:26","modified_gmt":"2025-05-05T09:01:26","slug":"best-neobanking-platform-india","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/best-neobanking-platform-india\/","title":{"rendered":"2021 – The Year for Neobanking in India"},"content":{"rendered":"

Banks have been around forever. In India, the history of banking dates way back to 1750 BC. We have traditionally been dependent on banks for all of our financial needs, as individuals as well as businesses.\u00a0<\/span><\/p>\r\n

Banks have offered us everything that we have required – from current or savings accounts to credit cards, various types of loans and also, insurance and investment plans. But with fintech startups, the dependency on traditional banks for these services is gradually decreasing, especially for businesses.<\/span><\/p>\r\n

These new-age banking services providers are commonly known as neobanks. They are using technology to unbundle traditional banks. And how!<\/span><\/p>\r\n

Lately, \u201cneobank\u201d has become somewhat of a buzzword in the fintech space<\/a>. Quite a few neobanking platforms have emerged in the last few years, creating a storm at a global level. The term itself has gained so much momentum because of the media that it has become a hot topic.<\/span><\/p>\r\n

Banking has moved forward in leaps in bounds in the past few years. The way businesses and individuals consume financial services has changed significantly ever since neobanking, API banking, and open banking became prominent in 2016.\u00a0<\/span><\/p>\r\n

It\u2019s no secret that traditional banks are on the front of increased competition from many arcs of the digital world. Neobanks are expanding rapidly, using state-of-the-art tech to win over customers, who demand simpler, faster, and more efficient financial services. In recent years, neobanks have become the next big thing in fintech.\u00a0<\/span><\/p>\r\n

So, we wanted to bring you a snapshot of how neobanks are on the way to transform financial services globally.<\/span> \"RazorpayX\"neobanking\"razorpayx<\/p>\r\n

The expansion of neobanking platforms<\/strong><\/h2>\r\n

Fintech startups all over the world, especially in banking and financial services have over 15 million consumers, out of which, over 50% of the consumers are acquired by neobanks.\u00a0<\/span><\/p>\r\n

The incredible growth opportunity for neobanking platforms is sprouted by their low-cost business model<\/a>, which has resulted in high adoption by small and medium-sized enterprises, as well as businesses with variable incomes and earnings, and businesses that embrace innovative tech.\u00a0<\/span><\/p>\r\n

The speed of neobank adoption has intrigued investors, corporates, as well as venture capitalists all over the world.\u00a0<\/span><\/p>\r\n

[ Read more: <\/b>Everything You Should Know About Neobanks<\/b><\/a> ]<\/b><\/p>\r\n

Neobanking in India\u00a0<\/strong><\/h2>\r\n

Globally, neobanks are entirely digitised. But, in India, regulations don\u2019t permit 100% digitised banks. Fintech companies showcasing themselves as neobanks offer services that are built on top of traditional banking services.\u00a0<\/span><\/p>\r\n

Regulatory framework for neobanks in India<\/strong><\/h3>\r\n

Neobanks in India emerged as a comprehensive aid for banking and financial services, as well as for small and medium-sized businesses. But, RBI\u2019s regulatory policies neither agree nor disagree with the factuality of fully digitised online banks – meaning, in India, neobanks aren\u2019t 100% digital.\u00a0<\/span><\/p>\r\n

Back in 2018, RBI kicked all forms of cryptocurrency to the curb, with an explanation that crypto transactions would be a threat to security. Also, other tech innovations like online currency and associated banking services appear to have come to a halt. This has put a damper on the tenacity of new business models since regulatory guidelines are muddled.\u00a0<\/span><\/p>\r\n

However, in August 2019, RBI ushered in a new regulation for the testing of new fintech innovations in a restricted ecosystem, which is motivating for emerging fintech companies.\u00a0<\/span><\/p>\r\n

RazorpayX Supercharges Banking for Businesses<\/strong><\/h2>\r\n

Usually, businesses have to deal with dreary and dull processes involving payouts and disbursals. These processes take up many hours of manual effort owing to buggy software and complex infra systems.\u00a0<\/span><\/p>\r\n

Neobanks are supported by the traditional banking infrastructure, and in return, neobanks help sell current accounts. With the partnership, neobanks provide all the benefits of traditional business banking, along with customised reports, flexibility for bulk upload, easier failure identification, scheduling of payouts, and so much more.\u00a0<\/span><\/p>\r\n

With <\/span>RazorpayX<\/b>, businesses can<\/span><\/p>\r\n