Neobanks are changing the financial landscape through their low-cost offering & technology, giving intense competition to traditional banking. Quoting the statement of Bill Gates, way back in 1994. Banking is necessary, but banks are not. Neobanks are new entrants into the banking industry. They are also known as fintech companies or financial technology companies. A simple example of how they differ from traditional banks is neobanks do not charge any fees for opening an account. Ideally, traditional banks charge a monthly fee for maintaining a budget. It offers a fully digital banking solution at a discounted cost due to the considerable savings in operating costs. This is attributed to zero physical branches & no spending on the workforce to man those branches. Some of the services include international payments, money transfers, or lending credit. Some new banks also partner with neobank to offer the services that help them provide both online & offline banking services. Fintechs have played a significant role in fulfilling this vision. We have witnessed, contactless banking was felt by the people more than ever before. People moved away from traditional banking & physical cash with more & more interest in online banking & wallets. It is estimated that the South Asian nation has 6,386 fintech firms. In total, 28% of them are in investment tech, while 27 percent belong to payments, 16% of them are involved in lending, according to the report. The three segments comprise nearly 70 percent of the fintech industry in India.

Although 9% of fintech companies offer banking infrastructure, the remaining are distributed across different areas such as insurance and Neobanks. India is the fastest-growing digital payments market and firmly on course to emerge as a major less-cash economy. Technology has been a key catalyst, with user-focused advancements aligned to shifts in consumer behaviour. Today, for a contactless payment solution, all.