To provide their consumers with cutting-edge banking and financial solutions, neo banks, which are fintech companies, collaborate with traditional banks in India. Neo banks in India differ theoretically and functionally from those in the west. The majority of neo banks are fintech companies or organizations that offer cutting-edge banking solutions to address clients’ problems. The RBI asserts that regulatory limitations prevent these fintech companies or online banking services from obtaining banking licenses. Neo banking licenses are currently becoming more and more widespread.
Neo banks can provide services even though they do not have their banking partners. The increased rivalry from the digital world is most seen in traditional banks. With the help of their cutting-edge technologies, neo banks are acquiring more and more patrons who want their financial services to be easier.
Neo Banking Setup can operate with complete traditional banking licenses or partial, lightweight, contemporary fintech licenses. A financial establishment that has been granted a banking license is allowed to take customer deposits and issue loans using those deposits. By collaborating with traditional banks, these banks can offer banking services including virtual accounts and the issuance of cards. Neo banking is expanding swiftly on a global scale. Numerous operational models have been created as a result of how quickly the industry’s thinking and practices are evolving.
Finlaw is the best place to go if you’re searching for a Neo banking license, according to the public. In terms of neo-banking services, Finlaw has been outstanding.
