Paper Contents
Abstract
Neobanks, or virtual-only banks, are disrupting India's banking industry by offering fully digital financial services without physical branches. Enabled by fintech innovations, these banks provide convenience, cost-efficiency, and personalized services. This paper examines the growth of neobanks in India, their business models, key drivers, regulatory challenges, and future prospects. It highlights how neobanks serve underbanked segments, including MSMEs, gig economy workers, and tech-savvy consumers. Despite challenges related to profitability, cybersecurity, and regulatory compliance, neobanks are poised to shape the future of digital banking in India. This study employs a descriptive and comparative analysis using secondary data sources, offering insights into the sectors evolution and potential.
Copyright
Copyright © 2025 Saidee Ningappa Patil. This is an open access article distributed under the Creative Commons Attribution License.
