Beyond Branches: The Emergence and Impact of Neobanks

Abstract

Neobanking represents a paradigm shift in the financial services industry, offering fully digital banking solutions that cater to the evolving demands of tech-savvy customers. These institutions operate without physical branches, leveraging go-between protocols like APIs and advanced technologies like AI and Blockchain to deliver seamless and efficient banking experiences. Unlike traditional digital banks, which are online subsidiaries of established financial institutions, neobanks function independently or in collaboration with traditional banks, making them agile and customer-centric. The paper identifies prominent players in the global and Indian neo banking markets, offering insights into their strategies and customer-centric approaches. By addressing challenges such as limited public awareness and societal acceptance, this study underscores the significant potential of neobanks to redefine financial services, making them indispensable players in the global banking landscape.