On 19 August, Punjab National Bank said that it has chosen the domain name bank.in and that, instead of using the current www.pnb.co.in, its website will now be www.pnb.bank.in.
PNB Strengthens Digital Security
“In accordance with the RBI circular on ‘Migration to ‘.bank.in’ Domain’ dated April 22, 2025, and with the assistance of the Institute for Development and Research in Banking Technology (IDRBT), which is the sole registrar for this domain, the bank has successfully moved its corporate website to the ‘.bank.in’ domain (https://pnb.bank.in),” the bank said in a statement. It further stated that this is a major turning point in the digital transformation of the Indian banking industry.
PNB Becomes First Public Sector Bank to Move to ‘.bank.in’
With the recent change, PNB has reaffirmed its dedication to providing its clients with safe and secure digital banking by being the first public sector bank in India to move its corporate website to the secure “.bank.in” domain. Only banks are allowed to use the “.bank.in” domain, which offers better protections against fraud, fortifies the cyber security architecture, and boosts public trust in online banking.
Why RBI Introduced the ‘.bank.in’ Domain?
PNB took this action in response to the RBI’s statement that rising rates of digital payment fraud are a serious concern in its development and regulatory policies following the monetary policy committee meeting on February 7 of this year. The RBI is launching the “bank.in” special domain for Indian banks in an effort to counteract this.
Benefits of the ‘.bank.in’ Domain for Customers
By streamlining safe financial services and lowering cybersecurity risks and criminal activities like phishing, this programme seeks to increase public confidence in online banking and payment systems.
Role of IDRBT as the Exclusive Registrar
The sole registrar will be the Institute for Development and Research in Banking Technology (IDRBT). The real registration process will start in April 2025. Bank-specific instructions will be released separately. According to the RBI, other non-bank organisations in the financial industry will eventually have their own domain, “fin.in”.
Quick
Shots
•Move in line with RBI’s April 22,
2025 circular on migration to “.bank.in” domains.
•PNB becomes the first public sector
bank in India to adopt the “.bank.in” domain.
•Exclusive to banks, preventing misuse
by fraudulent sites.
•Rising cases of digital payment
frauds flagged in RBI’s Feb 7 MPC meeting prompted the move.
Financial Technology or Fintech for short, is a technological innovation expanding the delivery of financial services from the traditional methods. Fintech enhances and automates financial activities like investing and trading in financial markets using smartphones, buying cryptocurrencies online, etc. Hence, fintech companies are those that provide financial services, financial management and financial planning services to individuals or entities through a digital platform.
India’s fintech market is the third-largest across the globe with a valuation of USD 31 billion, as per Blinc Invest’s report. The Indian Government’s support for digitalization, increase of tech-savvy citizens, growing number of mobile users, building of digital networks and the streamlining of financial processes have all contributed to the rapid growth of the fintech sector in the country.
The favourable ecosystem in India provides a great opportunity for the fintech sector to continue growing. Fintech companies in India mainly provide services in four main categories:
Payment and remittances services such as e-wallets and mobile payments
Peer to Peer Lending (P2P Lending)
Retail Banking Services – including both consumer-to-business (C2B) and business-to-consumer (B2C) services
Personal consultation services for savings and finance
Segment wise FinTechs in India
Business Structures of a Fintech Startup
A fintech startup can be any one of the following –
One Person Company (OPC)
As per the Indian Companies Act, 2013, Section 3(1)(c), a single person can form a company for a lawful purpose. In case the owner is a single entity wanting to operate a business, this is a good option.
Limited Liability Partnership (LLP)
A company where the liability to partners is limited to their respective shares is called a Limited Liability Partnership.
Private Limited Company (PLC)
In this type of setup, the company is treated as a separate entity from the owners with its own rights and liabilities. The owners, directors and shareholders have no personal responsibility towards the creditors. For fintech startups in India, this is the most preferred framework of formation.
Indian FinTech Market Size in 2022
Legal Compliances for a Fintech Startup
The nature of business for a fintech company makes it high-risk and very tightly bound within a legal framework. Hence the list of legal requirements and compliances to operate a fintech startup in India is long and detailed. This gets further complicated as most fintech companies offer a variety of services to their customers. A few important legal compliances are –
Payment Gateways
All payment gateways and payment aggregators are intermediaries that facilitate payment online in accordance with the Circular on Guidelines on Regulation of Payment Aggregators and Payment Gateways, 2020. Interactions pertaining to payment aggregators and payment gateways must be made through a bank between the payment gateway and the Reserve Bank of India (RBI). This is because payment gateways generally maintain certain requirements for protecting and securing digital transactions like Payment Card Industry Data Protection Standard (PCI DSS). This is a necessary step to safeguard digital transactions.
Data Protection
Financial companies, by the very nature of their business, collect and have access to personal and sensitive information on their customers. This automatically makes it mandatory for them to comply with the Information Technology Act, 2000 and its relevant regulations like the IT (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 (‘SPDI Rules’). This protects the data, manages and reports security breaches and avoids legal complications. Legal procedures prohibit corporate entities from revealing any confidential data they have received from the information provider, subject to certain exceptions.
Fintech Insurance Aggregators
Insurance aggregators are governed and regulated by the Insurance Regulatory and Development Authority of India (IRDAI) Insurance Web Aggregators Regulations, 2017. These insurance aggregators provide information about various insurance products in compliance with IRDAI regulations.
Digital Wallets
A fintech startup providing e-wallet or mobile wallet services must comply with KYC (Know Your Customer) requirements. The KYC specifications are outlined by the RBI in its “Master Direction – Know Your Customer (KYC) Direction 2016” and “Guidelines for Prepaid Payment Instruments.”
Lending Platforms
Lending Platforms are governed by the Master Directions – NBFC – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017. It says that P2P NBFC license-holding lending platforms have to mandatorily post the platform’s default rates on their website. They must also provide lenders and borrowers with adequate information to enable them to make clear and informed decisions.
Apart from the above-mentioned Legal Compliances for Fintech startups in India, other regulations and compliances includes –
Goods and Services Tax Registration
Legal Contract Formation and Management
Intellectual Property Rights (IPR) Protection
Information Technology Act & Rules Compliance
Securities and Exchange Board of India (SEBI) Regulations
RBI Regulations
National Payments Corporation of India (NCPI) Guidelines
Why Strong Compliances are Necessary?
Indian Fintech startup sector is growing rapidly using new and emerging technologies such as artificial intelligence, machine learning, blockchain, etc for providing faster and efficient financial services. What this also encompasses is that fintech companies have access to data highly sensitive in nature. The need for strong compliances is to primarily safeguard that data from misuse as well as to ensure that fintech companies are operating within the parameters of the law.
Conclusion
The process of launching a new fintech company is complicated. However, the grave importance of complying with legalities and regulations of India’s fintech policies cannot be stressed upon enough. This helps to avoid any future legal complications while also allowing emerging players to take advantage of any government incentives or benefits that are released for this sector.
FAQ
What laws are applicable to fintech companies in India?
Different Laws regulating the FinTech Sector in India are
The Payment and Settlement Systems Act, 2007
The Companies Act, 2013
The Consumer Protection Act, 2019
The Prevention of Money Laundering Act, 2002
The Information Technology Act, 2000
The Reserve Bank of India Rules
The Insurance Act, 1938
Do fintech companies operate without licenses?
Fintech companies in India are allowed by the RBI to obtain an NBFC license.
Are fintech companies regulated by RBI?
The Reserve Bank of India, also known as the RBI, is the country’s apex financial body in charge of regulating fintech companies and other financial institutions.
Is fintech is NBFC?
Fintech companies may not have succeeded in obtaining non-bank lender licenses from the Reserve Bank of India after three months of engagement and discussions.
Archaeological evidence from the era of 2000 BCE shows the beginning of the banking system with the first prototype that engaged in giving grain loans to farmers and traders. It also proves that money-lending was also an activity carried out in India and China as well. The historical roots of modern banking can be traced to medieval and renaissance Italy.
“Banking is defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to conduct economic activities such as making a profit or simply covering operating expenses.”
The primary role of a bank is to take in money, called deposits, pool them, and lend them to those who need funds. In essence, banks are intermediaries between depositors and borrowers.
A Short History
At the time, India won independence, and the major banks of the country were privately run. This created a potential problem as people from rural areas were dependent on money lenders for financial assistance.
With an aim to resolve this issue, the government decided to nationalize these banks. Between 1969 and 1991, twenty banks, whose national deposits were more than Rs. 50 crores, were nationalized. The banks that were nationalized include the Bank of Baroda, Bank of India, Central Bank of India, Punjab National Bank, Oriental Bank of Commerce, UCO Bank, Union Bank of India, and many others. Also, the State Bank of India was formed in 1955.
The Impact of Nationalization
There were many other reasons and considerations behind the government’s decision to nationalize banks.
It led to an increase in funds and helped raise the economy of the country.
It increased the efficiency of the banks.
It helped boost the rural and agricultural sectors of the country.
It helped boost employment.
The profit of the banks was used by the government for the betterment of the citizens.
Competition decreased leading to increased efficiency.
Liberalization – 1991 Till Date
This was one of the biggest developments in the Banking sector. RBI gave licenses to 10 private sector banks to establish themselves in the country. These include ICICI Bank, HDFC Bank, Axis Bank, and IDBI Bank.
This introduced a new era of the Banking model. As technology advanced so did the banking model evolve.
Evolution of the Banking Model – A comparison
Indian Banking Growth
Until the 1990s, the banking sector in India had adopted the traditional means of banking and maintaining records manually. However, with the financial reforms since 1993, the Indian banking sector had to accept computerization in order to cope with the increasing overload and incompatibility of the manual system to sustain further growth.
In 1993, the employees’ association of the Indian banks (IBA) contracted an agreement with the bank manager about the introduction of computerized applications in banks. This agreement was the major breakthrough in the introduction of computerized applications and the development of communication networks in banks.
Once the technology was introduced into the banking sector, it saw unprecedented growth and advancement. Traditional means of banking were rapidly replaced by e-banking options –
ATMs (Automated Teller Machines)
Automated Teller Machines (ATMs) or 24-hour Tellers are electronic terminals that allow banking activities almost anytime. To withdraw cash, make deposits, or transfer funds between accounts, an ATM card / Debit card is utilized. It offers a host of functions –
Cash Withdrawals
Balance inquiry
Mini Statements for accounts
Cheque or Cash Deposit facility
Funds Transfer
Payments
Telephone Banking
Telephone banking is a service provided by a bank or a financial institution, enabling customers to perform various financial transactions without the need to visit a bank branch or ATM. These transactions do not involve cash or financial instruments such as cheques. Banks have upgraded their phone banking services enabling customers to avail of a whole host of services with the help of a Voice Response System (VRS)
Check account balance and statement information.
Transfer funds between accounts.
Payment of bills like utility, credit cards, mobile, etc.
Request cheque book or account statements.
Demand Draft request.
Mobile Banking
Mobile Banking refers to the provision and availability of banking and financial services with the help of mobile telecommunication devices. Mobile banking facility is offered by most major banks in India. This has made banking transactions easy and hassle-free. Customers can use mobile banking to view their account balance, make instant fund transfers and pay bills, etc. There are various types of mobile banking services i.e., SMS, USSD, and mobile apps. Some of the banks have incorporated services like loan approval and linking of insurance policy in their mobile banking apps.
Access to Account Information.
e-statement of account.
Loan statements.
Card statements.
Third-Party Money Transfers.
Payments via NEFT/IMPS/RETG/UPI/MMID.
Investments in various financial tools.
Opening fixed deposit/recurring deposits.
Portfolio management services.
Online Banking
Also known as Internet banking or web banking allows a user to conduct financial transactions via the Internet. It offers customers almost every service traditionally available through a local branch including deposits, transfers, and online bill payments. The most prominent advantages of online banking are:
24/7 access and account service.
Speed and efficiency.
Online bill payments.
Cost-effective for banks.
Other services
The nature of banking services has evolved in the last 5 decades. Banks have also expanded their services to include various other peripheral services apart from traditional banking services.
– Investment Options:
Banks offer their own investment plans with a SIP option or one-time investment options which are, typically, stock market-related options.
– Insurance Options:
Banks have added a whole host of insurance options that they offer. Some options they offer are car insurance, house insurance, travel insurance, unit-linked life insurance policies, etc.
The Risks Attached
With advancements also come risks. The digitization of banks carries the same risks associated with the online internet world. There are security threats, privacy invasions, virus attacks, phishing scams, technological issues, money laundering risks, and many others.
Of course, there are actions that can be taken by both the customer and the bank itself to minimize the threats but they can never be completely eliminated. Banks, in particular, must adopt a robust security plan and keep it upgraded at all times to protect the confidentiality of data.
What Does The Future Hold
The mobile and the wireless market has been one of the fastest-growing markets in the world. The arrival of technology and the escalating use of mobile and smartphone devices have given the banking industry a new platform. Connecting a customer anytime and anywhere to their money and needs is a must-have service that has become an unstoppable necessity. This worldwide communication is leading a new generation of solid banking relationships.
At the pace at which technology is evolving, there is no way to know how the banking system will further evolve. The only certainty is that it will become more accessible and friendlier. It will grow to encompass other options and services for the benefit of its customers.
FAQs
What are the recent changes in the banking system?
A recent change in the banking sector is the emergence of e-banking, which is crucial in offering better services to clients.
What is the difference between traditional and modern banking?
Traditional banking requires you to go to a physical bank branch in order to access your account. However modern banking, allows you to conduct transactions from anywhere with an internet connection.
What was the aim behind the nationalization of banks?
The aim was to encourage businesses in order to serve better the needs of the country’s economy.
Which was the first nationalized bank?
The first bank in India to be nationalized was the Reserve Bank of India.
The world we live in is called digital for a reason, from Artificial Intelligence to social media; everything is possible because of Technological Advancement. These technologies have created such a way that there is hardly anyone who is not connected to them.
With new technologies getting invented every day, digital means of payment have become the new normal in this decade. Now, banking is a very significant part of our life. Thanks to banking we are enabled to have our money saved in a bank account and it provides safety to that amount. Plus we get our salary credited there. Not only that, banks also lent money to individuals and businesses.
A couple of years ago, using a virtual bank seemed like a scene from a sci-fi movie but now, it’s a reality. The definition of payment has changed; with the help of technology transferring money from one account to another is possible through the internet itself. Thus, the way of banking has also changed; we can get the facility of a bank without a requirement of one. In India, Fintech platforms are now setting their eyes on a certain industry and that is called the Neobanks.
“Banking is Necessary, Banks are Not.”
― Bill Gates
In this article we will find out about the Neobank industry in India and its future, So let’s dive in.
Neobank is a bank that is digital and doesn’t have any branches physically. It is completely online and they entirely focus on providing every facility of a bank like money transfers, financial solutions, and money lending through mobile phones.
In India, Neobanks doesn’t own bank licenses and hence rely on bank partners for providing banking services to its customers.
With the increase in the process of online banking and the acceptance of digital payments, Neobank is becoming a new trend in the country. These new-age banks provide good customer service and are very much customer-centric. Neobanks strive to offer a personalized banking experience to their customers based on analysis of customer data and behavior.
Being fully digital, Neobanks saves the costs of maintaining physical branches which lets them invest more in enhancing customer experience, and helps them maintain better margins.
Not just retail customers, Neobanks also has a lot on offer for small and medium businesses. From payment gateways to billing software, Neo Banks helps businesses manage their finances better.
Advantages Of Neobanking
People prefer Neobanking for various reasons. Some significant advantages of neo bank are –
Creating an account in neobank is much easier than creating a physical bank account. Just following some simple steps one can create their account from anywhere and anytime through their mobile.
International payments are possible through neobank card, while a traditional bank debit card doesn’t provide that service initially, we have to request an international debit card for global transactions.
Neobanks are user-friendly and are designed to fulfill the demands of the customers. Neobank apps are very easy to use for customers
Every transaction made through Neobanks is updated immediately on the app.
Covid-19 played a huge role in intensifying the digital banking methods amongst the customers. As per Statista, the number of users in the Indian Neobanking segment is expected to grow to 17.11 million by 2026. The increasing popularity has caused an increased number of neobanks in the country. Currently, there are around 27 neobanks in India. We have listed below the top 5 Neobanks of India.
It is considered one of the largest neo banking platforms. From small to big businesses and individuals enjoy Instantpay’s neobank service. Founded by Shailendra Agarwal, this neobank process millions of transaction per day. It is easy to use and can be operated from mobile and the web. Instantpay’s partners are ICICI Bank, Axis Bank, IndusInd Bank, and Yes Bank.
FamPay
FamPay Website
This neo banking app is specially made for teenagers. Of course, supervision from their guardians is to be done. Their main aim is to make teenagers empowered and independent by encouraging them to make decisions regarding their spending. Fampay offers a numberless prepaid card that lets teenagers and minors make payments both online and offline.
This app is founded by Kush Taneja and Sambhav Jain in the year 2019 and is used for basic payment for Zomato, Netflix, Swiggy Amazon, and many more. Its banking partner is IDFC Bank.
Jupiter
Jupiter Website
This neobank service was founded in the year 2019 by Jitendra Gupta and Vishnu Jerome. This neobank provides the customer with an option to monitor their money spending pattern and doesn’t have any hidden fees. It does have a calculator that lets the customers watch on their financial health. Plus it gives out lots of rewards as well. Jupiter’s banking partner is Federal Bank.
Open
Open Website
This neobank helps businesses say goodbye to all those hassles while opening a bank account. This was founded by Ajeesh Axhuthan, Anish Achuthan, Deena Jacon, and Mabel Chacko in the year 2017. Open helps startups and businesses with banking, payments, and accounting. It also gives out a business credit card.
Razorpay
Razorpay Website
Razorpay is the first neobank to enter the club of Unicorn. Razorpay is designed for businesses. It was founded in 2014 by Harshil Mathur and Shashank Kumar and has served over 10 thousand businesses.
Razorpay’s product suite makes accepting, processing, and disbursing payments easy for businesses. Razorpay offers RazorpayX, a service through which registered businesses can not only easily open current accounts, but can also automate bank transfers, get quick access to capital, do payroll automation, share invoices with customers, and pay taxes and also view financial reports from a single dashboard. Razorpay’s current account gives out features like chequebooks, debit cards, and account statements. Razorpay’s banking partner is RBL Bank.
However, one can take the Razorpay advantage even if his business is unregistered. Razorpay lets its users access all the payment modes like credit and debit cards, net banking, UPI, and Mobile Wallet. Freelancers, small businesses, and individual service providers can easily collect payment via Razorpay by integrating Razorpay into their website or app. They can also create payment pages, payment links, payment buttons, QR codes, collect recurring payments, make vendor payments, generate invoices and do much more with Razorpay.
In 2019 Neobanks raised $90 million in India. People are getting more familiar with digital financial services and with all those facilities prefer them over others as well. Although RBI doesn’t provide licenses to virtual banks, they collaborate with physical banks and let the customers use their services. In the last three years, India witnessed a steep rise of neobanks and with the trend, it is only going to rise in the coming years.
Conclusion
The world is witnessing a change that is revolutionary, everything is turning digitalized. It wouldn’t be wrong to say that the entire world is being ruled by the devices that we carry in our pockets.
With almost every service available digitally, the tech-savvy generation is indulging themselves in it enthusiastically plus the older generation is being a part of this change.
Banking, which is one of the most important parts of our lives, is now available without physical branches, thus this boon of technological advancement is making life a lot easier.
FAQ
What is neobank?
A neobank is a virtual bank that operates entirely online from customer onboarding, to availing the simplest banking services.
Which is the best neobank in India?
RazorpayX, Fampay, Jupiter and Instantpay are some of the top neobanks in India.
Each business requires several services for its easy working. Some of the services are achieved by the traditional method, whereas some services get fulfilled by outsourcing facilities.
Apart from these, there can be few leniencies provided by modern technology to accomplish a work. The best example of this is to achieve business banking solutions by the medium of the internet.
Online business banking solutions are a great way of using banking solutions with additional advantages such as convenience, ease to use, better-maintained record, etc. Multiple platforms are providing different services in the online business banking industry. Some of the most famous and well-known platforms are:
BlueVine is a California-based Fintech company popularly known to provide online banking solutions to small and medium-sized businesses. BlueVine works with the mission of empowering small businesses with innovative banking specially designed for them.
They work towards easing the pain point of every small business owner by providing them with solutions that can help them with acknowledging their cash flow, capital access, etc. There are several services provided by them,
Popular services provided by BlueVine:
Account basics.
Vender services and transactions.
Paycheck protection loan programs.
A business line of credit, etc.
Why should you consider BlueVine:
Best for small business owners or newly opened businesses.
Allows unlimited transactions.
Provides a better competitive interest rate.
2. Axos Bank
Axos Bank Website
Axos Bank is an American-based chartered Bank with the mission of building a secure financial future for those who look out for convenient online banking solutions. Axos Bank is a well-known bank for providing complete online-based business solutions to its customers.
Popular services provided by Axon Bank:
Small business banking solutions.
Commercial business banking solutions.
Commercial lending solutions.
Personal banking solutions, etc.
Why should you consider Axon Bank:
Axos Bank does only limit its services to online business banking solutions, it also provides complete services to personal banking services.
Axos Bank provides both mobile applications as well as desktop versions for the easy use of customers.
It is also given the tag of one of the best banks in America by Forbes.
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3. Novo
Novo Website
Novo bank is a United States-based online banking solution provider. Novo bank works with the ethics of empowering their customers with financial data along with the most compelling banking experience. Novo bank works with the simple aim of keeping no hidden fees for small businesses.
Popular services provided by Novo:
Helps in creating and managing an unlimited number of invoices.
Refunds at all ATMs.
Allows domestic and foreign wire exchange.
Why should you consider Novo Bank:
Novo bank works with a negligible amount of fees as compared to other places.
Novo bank is the simplest online banking solution provider platform. It’s easy to use and maintain.
Novo bank is perfect for new users as well as new startups to manage their business activities.
Lending Club is a California-based-to-peer platform enabling its users to keep a track of their financial expenses. Lending Club works on different facilities with the mission of transforming the banking industry to make credit more affordable and investing more rewarding.
Popular services provided by Lending Club:
Easy lending loans for business.
Easy lending loans for personnel.
Facility to check and keep a check on a business account.
Why should you consider Lending Club:
A business account can be opened within a few minutes.
Provides the service of mobile applications as well as web platforms.
5. Mercury
Mercury Website
Mercury is a United States-based banking solution provider platform especially popular for its support to newly born startups. Mercury can be considered as the first platform for providing easy access to early building startups and fintech companies. The aim of mercury is to power the next generation of companies that can build the shape of American industry.
Popular services provided by Mercury:
Allows the creation of virtual debit cards.
Keep a track of cash flow.
Allows the customers to sign in from anywhere in the world.
Why should you consider Mercury:
The whole process right from the start of creating the account till managing it with different facilities is available through the online method. Mercury completely eliminates the possibility of stepping into the bank.
Avails the customers with the facility of issuing virtual as well as physical banking cards by reposting each transaction to the head.
It is the perfect stop for startups to indulge in online business banking solutions.
6. NorthOne
NorthOne Website
NorthOne is a United States-based online banking solution. It combines online banking solutions with in-built tools for easy and safe business banking solutions. NorthOne works with the mission of eliminating the financial administration for business owners so that they can eventually focus on developing their business.
Some of the popular services of NorthOne are:
Allows smart and digital banking tools.
Allows the facility of depositing checks at a simple pace.
Provides business banking cards.
Why should you consider NorthOne:
NorthOne is the perfect platform for new users.
It is a mobile-based application, hence more accepted and favoured by typical mobile users.
Technology is grasping the world in its hand with each passing day. The businesses earlier needed visiting banks for taking up their needed services. However, now one can easily select needed online business banking solutions for their firm and can work with them without the need of actually stepping into the bank. There are several online platforms providing business banking solutions to customers.
FAQs
What is the best business banking app?
Some of the best banking apps one can consider using are Revolut, Monzo, Barclays, etc.
Which bank has the most secure online banking?
Citibank and Bank of America are the most secure banks for online banking
Which is the best online bank for business?
Santander is considered the best bank for online businesses.
What are the advantages of using an online business banking platform?
There are several advantages associated with the use of online business banking platforms. Online business banking platforms are low-cost to maintain, allow instant money transfer, is convenient to use, etc.
In this fast-pacing era where really nobody has the time or the interest to walk over to a bank branch to do banking or business, “Neobanks” are a change and, in a good way, but are they really a promising future? Let’s find out.
Neobanks are financial institutions or digital banks that exclusively operate online and do not have any physical branches. Neobanks provide services and products that are not found in traditional banking systems and are also, very efficient. They work either directly with service providers or with already established banks as they don’t have regulatory licenses, in the Indian context. Neobanks are a wide umbrella of financial services such as faster deposits, transfer of payments, credit cards, etc.
Neobanks had a customer base of around 7.7 million in 2018 and nearly tripled it to 20 million in 2020. In 2019, in India alone, Neobanks raised a big amount of 90 million dollars. And are expected to raise an amount of 394 billion dollars globally by 2026, according to reports of lead squared. Globally there are more than 200 Neobanks and more than 10 in India and the numbers are rapidly increasing.
In India, the growth of Neobanks are not that fast compared to the growth around the globe, but looking at how vast the Indian Market it can take over by a storm.
Difference Between Neobanks and Traditional Banks
Neobanks mostly press on solving banking issues faced by customers but lack in better overall customer experience.
The onboarding process of Neobanks is very simple, paperless, and less time consuming compared to traditional banks.
Neobanks are beneficial for small businesses whereas traditional banks prove to be very useful to millennials.
What Do The Neobanks Offer That Traditional Banks Don’t?
In the past few years, there’s a lot of change in the finance industry and with the introduction of UPI in India, which recorded over 4 billion transactions in October 2021, and the mobile wallets in the US and Europe we have seen tremendous amounts of transactions digitally.
Neobanks use innovative new technologies such as AI, Cloud analytics and for their audiences, they are merely an app, unlike the traditional banks which rely on financial products and expand their large network of branches for the customer base.
Neobanks mostly come in handy to the people who do not have much time to handle the hassles of visiting physical branches and have a busy living. They are way different than other financial institutions in certain ways such as,
Reduced timeline of acquiring customers and provide seamless customer services and paperless operations
Removing the challenges that are faced in the traditional banking system and thus, providing a brilliant user experience.
They have fewer regulations and are easy for customers to set up their accounts and also ensure advanced security and privacy.
They provide accounts and money transfers, seamless international payments. They also provide better interest rates than traditional banks because of their fewer costs and easy processes.
How Does Neobanks Work?
Neobanks work on the “Banking as a service” module and fix the gap between traditional banks and customer expectations. Banking as a service is an end-to-end process of operation of financial services on the internet and allows digital banks or third parties to connect with banks for better financial and banking services.
They are completely digital and online as there are no physical branches. Neobanks have modernized platforms that help them collect data of their target audience and based on the data collected they customize their marketing strategies accordingly as a result successfully creating a cohort of customers.
Are Neobanks The Future of Banking?
They are changing the face oftheFintech communityand one day maybe replace traditional banks but it’s not easy and one can never be sure. Neobanks are mostly like digital banks but remember “mostly”. They are much recognized as companies than banks.
In India, the RBI still doesn’t allow banks to be 100% digital and have some physical presence. The defining and most important reason for this is and the difference between Neobanks and traditional banks is funding and not forgetting customers’ trust. Traditional banks may find it hard to compete in this tech-savvy world still the legacy can’t be weighed down so easily.
Pros and Cons of Neobanks
Pros of Neobanks
Adapting technology and no presence of credit base makes them low cost and convenient for the low-salaried customer base.
Neobanks are convenient as allow operations through an app from basic banking to investing and other finances.
Better services and benefits. Quick processing for loans and speeding other requests by ditching paperwork.
Cons of Neobanks
Limited services compared to traditional banks and less regulated. No physical presence may hinder customers’ trust.
Keeping up with technology and advancements in trends.
No physical bank branches and In-person assistance access.
Neobanks have emerged as a buzz wave in the fintech community and have been doing great in maintaining their spotlight on a global level and every day more and more businesses and banks are signing up with them. We see a new player everybody whose intention is to simplify financial services and provide additional benefits with them.
Though it’s going to be hard to revolutionize the whole industry of banking and finance it’s gonna take time and real hard work for tech geeks. As the saying goes, “it’s the little changes that make the most important changes”.
FAQs
Are Neobanks banks?
Neobanks are not banks and do not have a bank charter. Instead, these institutions generally partner with a bank to ensure their products. Before signing up with a neobank, make sure it’s FDIC insured by a partner bank.
What is Neobank?
Neobanks are digital banks that do not have any physical branches and provide all financial services to their consumers through apps that can be accessed through a smartphone.
Is Neobanks secure?
Money deposited in a neo-banking account is as secure as it would be in a regular bank account in India.
When did Neobanks start?
The term neobank has been in use since at least 2016 to describe fintech-based financial providers that were challenging traditional banks.
Are Neobanks legal in India?
Talking about the neobanks in the Indian context, neobanks are not directly regulated by the banking regulator. This is mainly due to the fact that RBI does not grant licenses for operating virtual banks in India.
Automation and its effects on jobs will wipe out millions of job opportunities, and it is now creating hype among the generation. A threat of losing careers. Is this a real threat? If the answer is yes, then why it is introducing between us? No doubt, AI and automation promote programming, coding, content writing, website designer, data scientist, data analytics, and millions of job opportunities that were not there before the initiation of AI and automation.
Millions of jobs will lose their existence after the improvement in automation and AI.
In malls, supermarkets, and movie halls, cashiers are very commonly spotted. If we closely consider this job post, then no doubt this will no longer exist. The technology has already developed, in which a shop is running without a cashier.
Amazon has launched a retail store named ‘Amazon Go’. The whole store is automated. In which the customer needs to show ‘custom code’ before entering the store. Once you get access, you can buy anything from the store. The moment you step out of the store, the purchase amount will automatically be deducted from your bank account. Customers hate waiting; to make the process faster and to increase sales, companies around the world can implement this AI and sensor-based technique.
Telemarketers
This is a job in which telemarketers call costumes and explain their products to generate sales. You will hardly buy any product from a call. Companies stop investing in telemarketing.
The job post will be entirely replaced by digital marketing and social media. The automated algorithm introspects your product needs, and accordingly, products will be displayed to you. Amazon, Flipkart, Facebook, and Google, like big names, are already using this algorithm. You might have noticed that if you search for a laptop on Amazon, you will see the ads of laptops everywhere on Google or YouTube. This grand technology replaced telemarketers.
Drivers
Self-driving cars, AI driving technology have already arrived. Keeping road safety in mind, companies are now planning to launch an auto-drive system. This will reduce driver negligence, and traffic rules will be followed.
The Tesla company of Elon Musk has already launched self-driving cars. Still, technology needs more advancement. But road accidents are one of the biggest causes of death case producers. Considering this, a complete auto-driving system is not so far. Many companies will also benefit from automation. Mainly the taxi agencies will no longer use drivers; a one-time investment in cars will be enough.
Travel agents help you to find your best travel or trip plans and book tickets for you. Do you remember when you last consulted with a travel agent for your trip Maybe you don’t remember, but still, some travel agents are there? These jobs will be replaced entirely. Software and websites like MakeMyTrip, IRCTC is handling your travel plans. You can decide the travel location, book tickets and at more discounts.
The course of the middle man has vanished. Travel Agents are also charged separately for their booking. At an affordable price, you can book your travel plans. This is the reason this job post will vanish within a year by 2022.
Banking Jobs
Past was the time; even to check your bank account balance, you needed to visit the bank. Now the bank is ultimately shifting towards online mode. Banking is very complex management, and everything needs correct prosecution. Along with this, the bank is always crowded with people.
To make the work smoother, banks are now adopting online mode. A bank teller specifically receives money, gives, and the transaction process is mainly done by online mode. It is still there, but it will vanish soon. Banks are now using their apps and websites to control everything. As the world is stepping towards a cashless economy, it will happen for sure.
The banking sector came up with blockchain technology in which transaction records errors have no chance of occurring. Blockchain technology is now coming into the limelight; by 2022, it may enter most banking sectors.
Librarian
Again technology is the king here. AI and software can handle and analyze massive databases. Not only is the process quick but also efficient too. The work of a librarian can be handled by AI easily. Remembering the data of books, managing them, and providing them according to their needs, can be done efficiently by AI. Some libraries are now switched to AI control. Even the whole library is available in online mode.
The popularity of ebooks is the crucial game-changer here. The arrival of the Amazon Kindle made the real difference. It not only provides the required books we can even manage and carry them all with us. The role of a librarian is now fading away.
Almost all content writers, editors & proofreaders are aware of Grammarly. With every day passing by, apps and software such as Grammarly are improving their features better. From basic grammatical errors to tonality changes, these AI-driven apps and software have gained the potential to improve every piece of writing. They can detect the simplest of errors and remove them in few minutes. Thus, the editors & proofreaders no longer need to spend hours proofreading content. Thus, their jobs are also at stake.
Doctors
With robotic doctors crawling in the medical field, the chances of accuracy increase significantly. With accuracy in treatments, the risks of infections due to human interference also decreases. Today, we have apps and virtual assistants to assist us in basic health care needs. But, the day when robot doctors would be curing us is no far.
Receptionists
With auto check-ins paving their paths in hotels and communication screens becoming the new medium of placing orders at restaurants, receptionists & waiters will be in less demand. The advancement in AI can skillfully manage orders and all the other functions.
Customer Service Executive
This job of a customer service executive doesn’t require either a higher level of social or emotional intelligence for performing the assigned task. Mostly customer support questions or FAQs are used as a response by most of the companies to look over its overall performance.
And in today’s world, Chatbots are taking over such responses from customer support as testimonials to be used. These chatbots are helping a lot in gett queries done and accomplish interaction with customers.
Conclusion
Jobs in this list will increase gradually with the advancement of AI and software algorithms. Although the motive of advancement is to increase productivity and efficiency in the process, this advancement is also damaging the livelihood of millions of employees.
With the increase in population, it is a very alarming situation of creating employment. Apart from all these, some jobs are there which will remain safe from the involvement of AI. But over-involvement in anything can lead to destruction. The government bodies should think about the employment sector and build an AI to search for the maximum job possibilities out of something.
FAQs
What jobs will become automated?
Jobs that will be automated in future are:
Cashier
Telemarketers
Drivers
Travel Agents
Banking Jobs
Librarian
Editors & Proofreaders
Doctors
Receptionists
Customer Service Executive
How many jobs could be automated?
It is estimated that automation will replace about 85 million jobs by 2025.
Mobile Industry took its turn during early 1997 when the first GSM sim was introduced in the market. Because of GSM sim cards, it was easier to connect with people in remote areas at a cheap cost. People started buying mobile phones which turned out to be a great success for the mobile industry.
According to research, 1.38 billion mobile phones were sold worldwide every year. The industry took a pace after companies launching new smartphones which were multi-functional in their use. Presently the youth is too attracted towards new technology ensuring that they are as updated as possible.
But the major turning point for this industry was the year 2020 in the whole last decade. Here is why the mobile industry is booming every year and especially in 2020:
5G is the 5th generation mobile network introduced in the world to set a new global wireless standard. The wireless technology is meant to deliver hi-speed GBPS data, increased availability of the network, and a uniform experience to its users.
This speed is achieved by using higher frequency radio waves in addition to low and medium band frequencies used in the 4G Network (the 4th generation network).
The latest smartphones in our mobile industry are launched with 5G band compatibility which helps to increase the speed of network and internet and also makes the work easier. The next target to achieve better growth in technology is by speeding up which is possible by 5G connectivity.
COVID-19
2020 is the year where most effects of the coronavirus pandemic were seen. A worldwide lockdown was going on and physical connectivity was lost, the only way to carry out the routine activities and tasks was through the help of the internet and mobile phones.
Schools and offices were working on their systems virtually. The mobile industry got the benefit as everyone required a smartphone to carry out their routine activities and scheduled things through the medium of applications present in the smartphone.
Also, the government was supporting the virtual method as there was a huge rise in the number of Covid patients and helped many people by providing them with smartphones and gadgets at very reasonable costs.
Mobile manufacturers started focusing on budget smartphones that can be easily purchased by a middle-class person. Mobile companies covered all the losses they had incurred and made huge profits.
Banking Sector
One in every four people uses mobile banking services all over the world. Mobile banking provides the convenience and quickness of completing financial transactions via mobile applications and websites which is very feasible for their customers. Thus, banks are convincing their customers to shift to mobile banking which is directly beneficial to the mobile industry as it increases the usage of smartphones.
Also, many people prefer to keep two separate mobile phones, one for personal use and another one for business, financial, and banking purposes to avoid mobile fraud or any hack.
A survey was done on mobile banking trends which tells that there’s a growth of 38% in the year 2020 when compared to 2019. The banking sector in collaboration with the mobile industry can achieve much more progress in the future.
Number of Phone users in millions
Digital Advertisement Growth
Looking at the growth in smartphone usage and the drastic shift towards digitalization, many companies are now considering mobile advertisement. These companies advertise through text ads or via SMS or through banner advertisements that appear embedded on a mobile website.
Mobile Ads
Mobile marketing is easy to access and a very cost-effective way of marketing. Mobile media has begun to draw more significant attention from the media advertising industry since the mid-2000s, based on a view that mobile media was to change the way advertisements were made.
Today the techniques have shifted completely and the strategies used are far more advanced. The effect of digital advertisement directly comes to the sales of the mobile industry providing digital content to the audience.
E-Commerce
E-Commerce started in 1979 with limited resources, but gradually increased and is now in 2020 at it is at its peak. The rise of E-commerce websites has increased in the past year as the offline stores were closed and people were forced to shop their essential items, online stores through the medium of mobile apps and websites.
People started looking out for everything on their mobile phones and eventually now it has made people habitual to purchase goods online. This led to immense growth in the E-commerce sector.
Every year the E-commerce sector of India increases by around 28%. And because of the Covid-19 crisis, it has increased by 41% in the year 2020. The new platform for purchasing goods is convenient and helping the mobile industry to grow even at a faster pace.
IoT Devices
The future is based on technology. With this mindset, software companies are focusing on mobile-based IoT devices. IoT devices are computing devices that are connected wirelessly to a network and can transmit data to many devices.
The connected car technologies and smartwatches are a perfect example of the IoT devices which are connected to the mobile device to show information and transmit data to perform a set of operations commanded by a person. These devices will bring in the new future of the mobile industry.
Conclusion
Mobile Industry has seen many changes in the year 2020 and can see many more by the major players like Samsung, Apple, and Oneplus which consistently bring updates to their technology and reforms to meet the increased expectations of the consumers. Mobile phones will be taking over the future for sure with the rapid growth in the industry as well.
FAQ
What is the value of smartphone industry
The smartphones market is valued at USD 714.96 billion in 2020.
Is the smartphone industry competitive?
Yes, the smartphone industry is a very competitive industry as it is one of the fastest growing industries in the world.
Who has the most market share in smartphones?
Samsung has the most market share in smartphones in 2021.
The pandemic has changed the face of all systems that existed. The world is now divided into two parts – Pre and Post Covid. It highlighted many aspects of everyday activities that can be changed for the better. This pandemic is going to result in entire societies being transformed in the years ahead.
The Banking sector is not untouched by the pandemic. Although it was fully functional even when most services closed, it still underwent immense crisis during the pandemic. The banking sector, just like any other industry, has to implement newer methods into its system to stand the test of time.
The Banking sector prides itself on the digital functionality that it has built over the years. But Covid challenge their beliefs and established the fact they need more digitization.
In India, e-wallets and online money managing software gain pace but they are popular only in urban areas. In most rural areas, people still need to go to banks for basic deposits and withdrawals.
The world is moving towards voice-based artificial intelligence, personal smart assistants, built into our homes and mobiles. Therefore, the design of banks to fit in this world requires rethinking banking from the ground up.
Bank much start looking for new product launch opportunities, as well as generate newer offerings toward an advisory and protection focus. Advanced analytics helps them in identifying relevant ideas for growth, but it should be combined with an alteration of digital sales journeys and marketing.
Newer Models for Risk Management
Banks obtain their credit risk modelling from traditional credit bureaus that are both historical and static on the other hand new models are already established to assess small businesses in various contexts, for example, the supply chains that they serve along with the communities that they belong to. So, the risk management model for banks will change over time to be a relevant creditor to small businesses, that are rapidly increasing.
More user-friendly Experience
The banks have an image of being unpleasant and excessively difficult. They have to work towards changing in order to serve society. Private banks are providing more options to customers where agents will be on hand to guide them through transactions on their own devices, and the space will be renewed to more casual seating areas for important conversations. Changing the style and interior of branches also supports social distancing.
AI will be a crucial change as banks move forward from using these not only to monitor transactions but also to assist customers via “conversational banking”. Banks will be combining human and digital channels to help the customers which will be quick and cost-effective. As the love for instant messages grows and demand for 24/7 banking services picks pace, conversational banking involving AI chatbots enables banks to engage in a personalized manner.
Conclusion
We all are a part of the post-Covid world now and both consumers and creators in every sector understand that changes have to be made. Banking will evolve and become more user-friendly and they realize they depend on the society that they serve and not the other way around. Since users have more options to handle money now, banks have to pick up the pace to implement these changes into their systems.
FAQ
How are banks using augmented reality?
Banks are employing AR apps that help customers to find the nearest banks and ATMs.
Is Digital banking the future?
Yes, Covid 19 has also given a rise to Digital banking as it has eliminated the need for consumers to physically visit a bank branch.
What will bank branches look like in 10 years?
According to the experts, Bank branches will have fewer staff and will deploy more powerful ATM machines.
The Reserve Bank of India has announced a considerable number of changes in regards to the financial and non-financial transactions related to the ATMs in the country. The Central Bank has provided the permission for the banks to increases the charges from their customers. Let’s look at the latest Financial service Fees and charges revised by RBI.
A banking charge will be applicable from 1 January 2022 where the bank customers will have to pay an amount of INR 21 if they exceed the monthly limits of the withdrawal from the ATM. The ATM charges which were in existence were around INR 20 per customer if they exceed the monthly limits of the free transactions provided by the bank.
On 10 June 2021, the Reserve Bank of India has provided the permission for the banks to increase the charges regarding cash and non-cash Automated Teller Machine for exceeding the number of free financial transactions available on a monthly basis from next year i.e., 2022.
Interchange Fee charged by the Banks Revised by RBI
The circular contained the information regarding the interchange fee charged by the Banks for the ATM transactions. The interchange fee for the ATM transactions is increased from INR 15 to INR 17 for each financial transaction and the interchange fee for the non-financial transactions is increased from INR 5 to INR 6, which will be effective August 1, 2021.
An interchange fee is paid by the banks to the operator of the ATM when a customer makes a transaction at an ATM that does not belong to the card-issuing bank.
The Interchange fee has been revised by the RBI from INR 20 to INR 21 if the customers exceed the monthly limits of the withdrawal from the ATM.
RBI added that the customers will continue to enjoy the benefits of free 5 transactions every month which will be inclusive of financial and non financial transactions. The free transactions will be available every month through the ATMs of the banks with which they have an account.
The customers will also be eligible to do transactions in the ATMs of other banks with a limit of 3 free transactions in the metro cities and in the non-metro cities the customers will be eligible for 5 free transactions from the ATMs of another bank.
RBI conveyed in a statement that in order to compensate the banks for the higher fee charges for interchange and due to the general increase in the costs, the Reserve Bank of India has allowed the Banks to increase the charges on ATM transactions to INR 21.
Number of ATM’s in India
Reason for the increase in the charges by RBI
The Reserve Bank of India has conveyed that the reasons for letting banks increase the fee and charges for the transactions were mainly due to the increase in the cost towards the maintenance of the ATMs and also the increase in the cost for the deployment of the ATMs.
The maintenance cost incurred by the banks and the white label ATM providers is considered to have the necessity to balance the expectations of the stakeholders of the financial institutions as well as providing a convenience to the customers.
The committee which decided on the ATM charges was established by the Reserve Bank of India back in the year 2019 in the month of June. The committee was set up under the chairmanship of VG Kannan who was the chairman of the Indian Banks’ association. The main aim for the setting up of the committee was to review the entire range of the ATM charges.
The recommendations of the committee were announced to the public by the Reserve Bank of India in the year 202o in the month of July and the recommendation was to use the population as a metric in order to measure the calculations for the ATM charges.
The Reserve Bank of India had also conveyed that the recommendations from the panel were examined in detail.
List of Financial Charges revised by the RBI
From January 1 2022, Customers will be charged INR 21 per ATM transaction after exhausting limit of free transactions which a customer is eligible to conduct from other banks’ ATMs. The interchange fee is hiked from the existing INR 20 to INR 21 per transaction.
The interchange fee for the ATM transactions for the Banks is increased from INR 15 to INR 17 for each financial transaction and for the non-financial transactions is increased from INR 5 to INR 6, which will be effective August 1, 2021.
Conclusion
The last change in the interchange fee in regards to the transactions of the ATMs was in the year 2012 and the charges that were paid by the customers were revised in the year August 2014. There has been a lot of time since there was a change in the charges on the customers regarding the use of ATMs and the transaction fees.
FAQ
Why has RBI revised Cash withdrawal charges?
The Reserve Bank of India has conveyed that the reasons for letting banks increase the fee and charges for the transactions were mainly due to the increase in the cost towards the maintenance of the ATMs and also the increase in the cost for the deployment of the ATMs.
What are the revised charges by RBI?
Customers will be charged INR 21 per ATM transaction after exhausting limit of free transactions and The interchange fee for the ATM transactions for the Banks is increased from INR 15 to INR 17 for each financial transaction and for the non-financial transactions is increased from INR 5 to INR 6.
What is interchange fee ATM?
An interchange fee is paid by the banks to the operator of the ATM when a customer makes a transaction at an ATM that does not belong to the card-issuing bank.
