NEO Bank- Revolution in Indian Banking Sector- A Critical Analysis
Volume III, Issue VI, 2020
A bank is a place where all kind of financial transaction takes place, where people save their money or make investments through it. In the age of digital India, we are focusing on digitalization of everything then why not banks also. Neo banking is a concept where we do not have any physical bank because it will provide services entirely through online mode. Neo banking is an entirely different concept where customer can avail all the service of physical banks even without having any physical bank-like money transfer, money lending, investments and many more. These neo banking are completely based on the “Information Technology” and “Artificial Intelligence” but still they do not have bank license as Reserve Bank of India keep a strict check on banking services. Thus, these neo banks depend on the bank partners to provide them with banking service license. Today it has become very important for every business to meet the requirement of the customers and their level of satisfaction if they want to survive in the market, but somehow traditional banking approach are unable to fulfill that which neo banking is trying to fill that gap between the customer and traditional bank.
In this research paper, the author will firstly explain the concept of neo banking, functionality of neo banking than the author will focus on the regulation of the neo banking and their reorganization in Indian banking sector. The paper will further emphasize on the working aspect of the neo banking means services provided by them to their customers. Thereafter, the author will put light on scope of neo banking in India and at the end; the paper will also contain a comparative study of working neo banking in India and in other countries.
Keywords: Neo banking, online transaction, customer satisfaction, Reserve Bank of India, Information Technology, Artificial Intelligence.