Opportunities and Challenges to Neo-Banking: An Indian Perspective

Abstract

Major changes have occurred in the competitiveness and market structure of Indian banking. Technological and digital innovations are transforming the banking services of the future. In the near future, it is expected that technological improvements will have a major impact on the global financial sector. Financial institutions' business models and strategies are challenged by innovations in payments, lending, asset management, and insurance, but these innovations also present opportunity for new entrants and established market players. Due to a greater reliance on information technology, the financial services industry is characterised by developing technical developments known as fintech. The growing adoption of technology by traditional banks, whether through internal improvements or joint ventures with fintechs, is in line with the idea of new-generation banking. This is pushing the banking industry to adopt new business strategies and provide cutting-edge goods and services. Consumers today expect banks to provide them with dependable, individualised, and efficient services. This is especially true for retail clients. Offering financial services that are both inexpensive and available to everyone is therefore necessary. small banks. Neo banking is one such innovative tactic employed by fintech companies. The financial industry term "neo banking" is revolutionising the Fintech sector in India. Now making their way into India, the highly successful Neo banks allow customers to obtain financial services with just a click of the mouse. Neo banks offer their customers, especially the underbanked population of our country and the tech-savvy generation, state-of-the-art banking solutions. As a result, the purpose of this research paper is to analyse the opportunities and problems associated with the notion of neo banking.