Digital Disruption of Neo Banks with Reference to Indian Banking Landscape

Abstract

Neo banks offer financial products via digital means and provide banking services without a branch network. Neo banks by dint of fin tech have plugged into the conventional bank’s network and become customer-facing banking service providers through their pecuniary innovations. They have also leveraged technology and artificial intelligence to offer personalized services to customers while minimizing operating costs. Moored by regulatory hurdles, neo banks are yet to unleash their true force. It is how we perceive this without any major economic strains in the banking arena will determine the success or failure in embracing the same. This paper examines how the banking landscape will get more intricate by the initiation of Fin tech, in tandem with the growth of Neo banks, and its potential influences on the current situation of lending in the Public and Private sector. This study also proposes to critically examine the threats and opportunities in sustaining such innovations and enduring the same to progress in the Banking sector.