What are Neo Banks?

-Neo-banks are online-only financial technology (fintech) companies that operate solely digitally or via mobile apps.Simply put, neo-banks are digital banks without any physical branches.

-In India, Neobanks don’t have a bank licence of their own but rely on bank partners to offer licensed services.

-Unlike Traditional Banks, Neo-banks require minimum paperwork, are affordable, charge minimum to zero transaction fees and are borderless.

-They are also referred to as challenger banks because they have disrupted the entire traditional banking model with a tech-driven alternative mode of banking.